The Online Gaming Promotion and Regulation Bill, 2025, has now become a law after the President's approval. With the implementation of this law, there has been a big change in the online gaming landscape of India. On Friday, President Draupadi Murmu gave her approval to the bill passed by the Parliament.
Earlier on Thursday, this bill was passed by the Rajya Sabha from the Lok Sabha. At the same time, on Wednesday, the Lok Sabha gave its green signal to this bill. In the new law, e-sports and social games have been given relief, but online money games have been completely banned. The gaming industry and the government are divided on this. Let's know about it in detail.
What is a real money game?
Online real-money gaming refers to digital platforms where players pay to participate in games and can win cash prizes. These include all online games with cash bets and monetary winnings.
What will be banned under the new law related to online gaming?
All online money games are based on skill or luck.
This will also include online fantasy sports and lotteries.
Advertisements, promotions, and transactions through banks or payment apps related to such games are also banned.
Which online games will get promoted?
E-sports will get the status of a legal sport. The government will support training academies, research, and official competitions.
Social and educational games will be registered and promoted so that children and youth can get entertainment and skill development through safe and age-appropriate games.
Provision of strict punishment in the new law
Maximum 3 years imprisonment and a fine of up to Rs 1 crore for offering money games.
2 years imprisonment and a fine of Rs 50 lakh for advertising.
3 to 5 years imprisonment and a fine of up to Rs 2 crore for repeating.
Major crimes have been categorized as serious and non-bailable.
Fine of up to Rs 10 lakh for not following instructions
Failure to comply with the instructions of the Central Government or the new authority may result in a fine of ₹ 10 lakh, registration suspension or cancellation, and a ban on operations. Offences related to hosting and financial facilitation have been explicitly declared cognizable and non-bailable under the Indian Civil Security Code (BNSS), 2023.
What is special about the law?
For this, the central government will create a new national body called the Online Gaming Authority
It will categorize and register online games.
It will decide which game is a banned 'money game'.
It will ensure redressal of complaints and compliance with the rules.
A new authority will be set up to monitor the implementation of the bill. Its initial cost is estimated to be around ₹50 crore and annual cost ₹20 crore, which will be funded from the Consolidated Fund of India.
What will be considered e-sports games?
E-sports are defined as competitive skill-based games played in virtual arenas with recognized rules and standards. The government had already recognized e-sports as a multi-sport event in 2022.
Industry concerns and warnings
The Association of Indian Gaming (AIGF), E-Gaming Federation (EGF) and Fantasy Sports Federation of India (FIFS) have expressed concern over the bill. The organizations have warned that such a complete ban will ruin the industry. This will not only lead to job losses, but crores of users will be pushed towards illegal foreign betting and gambling platforms.
It has an enterprise valuation of over Rs 2 lakh crore and annual revenue of over Rs 31,000 crore. It contributes over Rs 20,000 crore annually in direct and indirect taxes.
The total number of Indian online gamers is set to grow from 36 crore in 2020 to over 50 crore in 2024. The industry has attracted foreign direct investment (FDI) of over Rs 25,000 crore as of June 2022. Industry bodies stressed that the ban will also impact global investment and investor sentiment. As a result, more than 400 companies may close down and two lakh jobs may be lost.
India is likely to become an online gaming hub
Electronics and Information Technology Ministry Secretary S Krishnan said that India can become the world's online gaming hub. The government has been promoting legitimate e-sports and game developers since the beginning.
The government has taken several steps to promote e-sports
Chess and other globally recognized esports now come under the purview of the Ministry of Youth Affairs and Sports. Along with this, the government is also encouraging the Animation, Visual Effects, Gaming, and Comics (AVGC) sector. To strengthen this sector, the Indian Institute of Creative Technology has been established in Mumbai. At the same time, various centers of excellence have also been opened under the Software Technology Parks of India (STPI). He clarified that on the one hand, this step will promote e-sports and the creative gaming sector in the country. On the other hand, illegal and risky online money-gaming activities can be curbed.
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