Recently, parliament has passed The Promotion and Regulation of Online Gaming Bill, 2025. The Bill seeks to address the fast-evolving digital gaming landscape by prohibiting online money games, while promoting e-sports and social gaming through a structured regulatory framework.

Objective of the bill:

The Bill reflects a decisive effort to curb predatory gambling practices while nurturing a responsible, innovative online gaming ecosystem. It draws a clear line between exploitative money games and legitimate gaming activities, such as e-sports and social games, positioning India to become a global leader in safe and regulated digital gaming.

Key provisions of the bill:

1. Ban on Online Money Games

• • The Bill strictly prohibits online money games, defined as any game where users pay money or other stakes (e.g., coins, credits, tokens) with the expectation of monetary gain. The prohibition applies regardless of whether the game is based on skill, chance, or both.
  • It also bans advertising, financial transactions, and facilitation of such games, and empowers the central government to block access to any related content or services.

2. Support for E-Sports and Online Social Games

In contrast, the Bill encourages e-sports and online social games.

• • E-sports are defined as competitive, skill-based games, part of multi-sport events, recognised under the National Sports Governance Act, 2025, and free of any betting or staking elements.
  • Online social games are for recreation, entertainment, or skill development, and may allow subscriptions or one-time access fees, but must not involve gambling elements.

Creation of a Gaming Authority

The Bill empowers the central government to establish an Authority on Online Gaming. This body will:

• Determine whether a game qualifies as an online money game,
• Register and categorise online games,
• Oversee compliance with rules and safety standards.

Search, Seizure, and Arrest Without Warrant:

Authorised officers are allowed to enter, search, and arrest without a warrant, including in digital spaces like emails and social media. These powers extend to buildings, vehicles, and electronic records, and will follow provisions under the Bharatiya Nagarik Suraksha Sanhita, 2023.

Stringent Offences and Penalties

Penalties under the Bill are significant:

• Offering online money games: Up to 3 years’ imprisonment, ₹1 crore fine, or both.
• Advertising such games: Up to 2 years’ imprisonment, ₹50 lakh fine, or both.
• Facilitating transactions: Up to 3 years’ imprisonment, ₹1 crore fine, or both.

These offences are cognisable and non-bailable.
Non-compliance with government or Authority directions may result in civil penalties, suspension of registration, or temporary bans from operating.

Impact on the Industry:

• Revenue Loss: The ban on online money games is expected to result in significant revenue losses, with estimates suggesting a loss of ₹20,000 crore annually.
• Job Losses: Industry leaders warn that the ban could lead to massive job cuts and business closures, threatening over 2 lakh jobs and ₹25,000 crore in FDI.
• Shift to Offshore Platforms: The ban may redirect users to offshore platforms, potentially costing the exchequer nearly ₹20,000 crore annually.

Conclusion:

The Promotion and Regulation of Online Gaming Bill, 2025, is a landmark legislation that aims to balance innovation with social responsibility. While the bill promotes e-sports and social games, it also takes a strict stance against online money games, prioritizing public welfare and safety. The outcome of this bill will shape India's gaming ecosystem and its ambition to become a global leader in digital entertainment and technology