News: The Union government has taken a decisive step to regulate India’s fast-growing online gaming sector with the introduction of the Promotion and Regulation of Online Gaming Bill, 2025.
About Promotion and Regulation of Online Gaming Bill 2025
- The Bill seeks to promote e-sports and socially beneficial games while imposing a complete ban on money-based online games.
- Nodal Ministry: Electronics and Information Technology
- Objectives
- Encourage Positive Gaming: Promote e-sports and safe social or educational games.
- Ban Risky Money Games: Stop online gambling, betting, and real money games that can cause addiction or financial loss.
- Protect Citizens and Security: Safeguard users, especially youth, from fraud, money laundering, and other online risks.
- Support Innovation: Provide rules and guidelines to grow India’s gaming industry responsibly.
- Key features of Bill
- Definition: An online money game is defined as an online game that involves a user paying money or other stakes in expectation of receiving monetary or other enrichment.
- This is irrespective of whether the game is based on skill, chance, or both.
- Other stakes include credits, coins, and tokens equivalent or convertible to money.
- Prohibition on online money games: The Bill prohibits offering or aiding online money games and related services.
- Banning of advertisement: The Bill also prohibits advertising, and facilitating financial transactions for such games.
- It empowers the central government to block any information related to online money gaming services from public access.
- Promotion of e-sports and online social games: The Bill empowers the central government to take steps for recognition and development of e-sports and online social games.
- Definition of E-sport: An online game that –
- is played as part of multi-sports events,
- is recognized under the National Sports Governance Act, 2025,
- has outcome determined solely by factors such as physical dexterity, mental agility, strategic thinking, or similar skills, and
- involves organised competitive events conducted in multiplayer format and governed by pre-defined rules.
- Definition of E-sport: An online game that –
- Creation of a National Regulator: A National Online Gaming Authority will be set up to register and categorize online games, address grievances, and ensure compliance.
- The body will also have the power to recommend blocking non-compliant platforms.
- An estimated ₹50 crore has been earmarked for its initial setup.
- Heavy Penalties for Violations: The legislation prescribes stringent punishments:
- Operating or facilitating money-based games: up to three years in jail and a fine of ₹1 crore.
- Advertising banned games: up to two years in jail and a fine of ₹50 lakh.
- Financial facilitation: punishable with penalties similar to operators. Repeat offences can attract fines up to ₹2 crore and imprisonment of up to five years.
- Most offences under the Bill will be cognizable and non-bailable, giving enforcement agencies wide-ranging powers to search, seize, and act against violators without warrant.
- Definition: An online money game is defined as an online game that involves a user paying money or other stakes in expectation of receiving monetary or other enrichment.
