The Online Gaming (Promotion and Regulation) Act, 2025

Passed by Parliament :  on August 21, 2025

The online gaming sector is generally divided into three distinct segments:

1. E-Sports: This refers to competitive digital games where teams or individuals participate in organized tournaments. Success in e-sports requires strategy, coordination, and advanced decision-making. Examples : League of Legends , Call of Duty
2. Online Social Games: These are casual games that are part of everyday recreation. They are primarily skill-based and designed for recreation, learning, or social interaction. Such games are generally considered safe and do not have negative social consequences. Examples: online chess and Ludo King
3. Online Money Games: This segment includes games involving financial stakes, whether based on chance, skill, or a combination of both. These platforms have raised serious concerns due to addiction, financial loss, money laundering, and even reported cases of suicide linked to significant monetary losses. Examples – Dream11, RummyCircle, and poker etc.

Why the Bill was Needed :

The rapid proliferation of online money games has created serious risks for individuals, families, and the nation. It is estimated that 45 crore people have been negatively affected by online money games, suffering losses of over ₹20,000 crore. The primary reasons for the necessity of this Act are as follows:

• Addiction and financial Ruin
• Mental health and suicides
• Fraud and money laundering
• Threats to national security
• Closing legal loopholes: Regulation of a largely unregulated online domain.
• Encouraging healthy alternatives
• Addressing challenges related to extra-territorial jurisdiction and inter-state inconsistencies, as many gaming platforms operate from offshore jurisdictions.
• Emerging India as a major game making hub.

Key Provisions of the Bill:

This Act establishes a comprehensive framework to promote safe digital recreation while prohibiting harmful practices associated with online money games. Its main provisions are as follows:

1. Applicability: The law applies to the whole of India, as well as to online money gaming services offered within the territory of India or operated from outside the territory of India.
2. Promotion and Recognition of E-Sports:
   • E-sports have been recognized as a legitimate competitive sport in India.
   • The Ministry of Youth Affairs and Sports will prepare guidelines and standards for tournaments.
   • Training academies, research centers, and technology platforms will be established to advance the sector.
   • Incentive schemes and awareness programs will also be launched to integrate e-sports into broader sports policies.
3. Promotion of Social and Educational Games:
   • The central government has been given the power to recognize and register social games that are safe and age-appropriate. These games may focus on education, culture, or skills.
   • Dedicated platforms will be developed to distribute such content.
   • Awareness campaigns will highlight the positive role of these games in building digital literacy and encouraging healthy recreation.
4. Prohibition of Harmful Online Money Games:
   • The Act imposes a complete ban on online money games, regardless of whether they are games of chance, skill, or a combination of both.
   • The advertising and promotion of such games are strictly prohibited.
   • Financial transactions related to these platforms cannot be processed by banks or payment systems.
   • Authorities will also be empowered to block access to unlawful platforms under the Information Technology Act, 2000.
5. Establishment of an Online Gaming Authority:
   • A national-level regulatory authority will be established, or an existing one may be designated for oversight.
   • Its functions include:
     • Categorising and registering online games.
     • Deciding whether a game qualifies as a money game.
     • Addressing public grievances.
     • Issuing guidelines, codes of practice, and directions to ensure compliance.

6. Offences and Penalties:
   • Offering or facilitating online money games can lead to imprisonment for up to three years and a fine of up to one crore rupees. Financial transactions linked to these games are also punishable with similar penalties.
   • Advertising such games can attract a jail term of up to two years and a fine of up to fifty lakh rupees.
   • Repeat offenders face harsher punishments, including imprisonment of up to five years and fines of up to two crore rupees.
   • Offences under key provisions will be cognizable and non-bailable.
7. Corporate and Institutional Liability:
   • Companies and their officers will be held accountable for offenses.
   • However, independent and non-executive directors who are not involved in day-to-day decisions will not be punished if they can show that they acted with due diligence.
8. Powers of Investigation and Enforcement:
   • The central government may authorize officers to investigate, search, and seize both digital and physical property linked to offenses.
   • In certain cases, officers will have the power to enter premises and make arrests without a warrant.
   • Investigations will follow the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, which governs criminal procedure in India.
9. Rule-Making Powers:
   • The central government has the authority to frame rules for

• the promotion of e-sports and social games,
• the recognition and registration of online games, and
• the functioning of the Online Gaming Authority.
• any other matter required under this law.

Benefits of the Act for Society :

1. Boost to the Creative Economy: It will expand opportunities for exports, create new jobs, and promote innovation in the gaming sector.
2. Youth Empowerment: It will help young people build confidence, discipline, and teamwork through e-sports and skill-based digital games, opening up new career pathways.
3. A Safer Digital Environment: The Act protects families from predatory money-gaming practices, which often lead to addiction and distress.
4. Strengthening Global Leadership: India will emerge as a global leader in responsible gaming and digital policy.
5. Balancing Innovation with Social Protection.

Other Key Initiatives to Counter the Risks of Online Gaming :

1. Information Technology Act, 2000 and Related Rules: The IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, amended in 2023, laid down norms for online gaming platforms.
   • Online gaming intermediaries must ensure unlawful or illegal content is not shared on their networks.
   • Intermediaries offering money games are required to register with Self-Regulatory Bodies (SRBs), which verify whether a game is permissible.
   • Section 69A of the IT Act empowers the government to block access to illegal websites or links.
2. Bharatiya Nyaya Sanhita, 2023:
   • Section 111 penalizes unlawful economic activities and cybercrimes.
   • Section 112 prescribes punishment for unauthorized betting and gambling, with a minimum of one year imprisonment (extendable up to seven years) along with fines.
3. Integrated Goods and Services Tax (IGST) Act, 2017:
   • Illegal and offshore gaming platforms are regulated under the IGST Act.
   • The Directorate General of GST Intelligence is authorized to direct intermediaries to block access to unregistered or non-compliant gaming platforms.
4. Consumer Protection Act, 2019:
   • This Act prohibits misleading and surrogate advertisements.
   • The Central Consumer Protection Authority (CCPA) has the power to investigate, penalize, and take criminal action against offenders.
5. Reporting of Cybercrimes:
   • Citizens can report cybercrime on the National Cyber Crime Reporting Portal (cybercrime.gov.in).
   • A toll-free helpline, 1930, is available for quick reporting of online scams and fraud.
6. Advisories by Ministries:
   • The Ministry of Information and Broadcasting (MIB) and the Ministry of Education have issued advisories to media platforms, advertisers, influencers, parents, and teachers on safe gaming habits.