The Lok Sabha recently approved the Promotion and Regulation of Online Gaming Bill, 2025, a significant legislative move aimed at governing India’s burgeoning online gaming sector. This bill seeks to foster specific areas of the industry while imposing restrictions on others. Introduced by Union Minister Ashwini Vaishnaw and subsequently passed in the Lok Sabha, the bill has two primary objectives: to support the growth of e-sports and educational gaming, and to completely prohibit real-money online gaming (RMG), irrespective of whether the games involve skill or chance. The new law is poised to significantly impact India’s digital entertainment and gaming landscape, affecting gaming platforms, fintech payment systems, advertisers, influencers, and users alike. The bill establishes a national regulatory framework with the following objectives: encouraging the growth of esports and social or educational gaming; setting rules for digital gaming platforms and formally acknowledging legitimate games; banning all forms of online real-money gaming, including related advertisements and financial transactions; and safeguarding young people and vulnerable groups from the financial, psychological, and social risks linked to real-money gaming. Key definitions within the bill include ‘Online Game,’ which encompasses any digital or electronic game played via the internet or electronic devices; ‘Online Money Game,’ a game of skill, chance, or both, involving monetary stakes for potential winnings; ‘E-sports,’ recognized competitive digital games based on skill, played without monetary stakes; and ‘Social Games,’ designed for fun, learning, or recreation, without any wagering. E-sports and social games are exempt from the ban and will receive support through institutional initiatives. Prohibited activities under the bill include the provision or enablement of any form of online real-money gaming, advertising or promoting real-money games (including via influencers), and money transfers for such games. Violators face penalties of up to three years in prison, with repeat offenses potentially leading to fines of up to Rs 2 crore. Authorities are granted extensive enforcement powers, including the ability to conduct searches and make arrests without warrants, access both physical and digital spaces, and block content on platforms violating the ban. While the bill strictly prohibits real-money gaming, it actively promotes growth in areas such as e-sports, which will be officially recognized and supported similarly to traditional sports, and educational and social games, provided they do not involve money. The need for this bill is underscored by the rapid expansion of India’s online gaming industry, which has attracted over 400 million users. However, the government has expressed serious concerns about the rising issues of addiction, mental health problems, financial losses among vulnerable groups, and potential links to illicit activities. The bill aims to supersede all existing state-level regulations, cover both domestic and international platforms catering to Indian users, and may face legal challenges from industry players and states.
