The Promotion and Regulation of Online Gaming Bill 2025

Online gaming in India is entering a new phase as the Centre approved the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to impose a complete ban on real-money games (RMG). This legislation, championed by IT Minister Ashwini Vaishnaw, prohibits all forms of online games that involve monetary stakes, including popular formats like fantasy sports, rummy, poker, and opinion trading.

Overview of the Bill

The Bill decisively resolves the long-standing debate around “skill versus chance” by categorising all monetary games as illegal. Additionally, it covers foreign platforms that can be accessed within India, thereby giving the government the authority to take action against international operators. To cut off financial support, the Bill forbids banks, non-banking financial companies (NBFCs), wallets, UPI, and payment gateways from managing any deposits or withdrawals associated with these games. It also bans advertising and endorsements from celebrities or influencers.

Exemptions in the Bill

The only exceptions to this extensive ban include e-sports and casual or social games. E-sports are recognised as competitive sports that may only charge entry fees. Social games are permitted as long as they do not involve winnings, although developers can still implement subscription or access fees.

Stringent Enforcement Measures

This legislation introduces rigorous enforcement mechanisms. Offences related to the offering of money games are classified as cognizable and non-bailable, allowing police to execute arrests without a warrant and to conduct raids on both physical and digital premises. The penalties for offering such games could lead to up to three years of imprisonment and fines reaching Rs 1 crore. Promotional activities might lead to two years in jail and fines of Rs 50 lakh, with similar consequences for those facilitating payments. Repeat offenders could face escalated mandatory penalties of three to five years along with fines of Rs 1 to 2 crore.

Liability and Compliance Standards

Responsibility under the Bill extends beyond companies to include promoters and executives. Directors, managers, and responsible officers will be held personally liable unless they can demonstrate a lack of awareness or diligence, heightening compliance concerns for management teams.

The Establishment of an Authority on Online Gaming

The Bill also advocates for the formation of an Authority on Online Gaming tasked with the registration of platforms, classification of games, issuance of compliance codes, and management of disputes. This authority will have the final say in determining whether a game qualifies as e-sports, social, or money-based. Initial funding for the regulator is projected at Rs 50 crore, with annual operation costs set at Rs 20 crore.

Potential Economic Impact

The repercussions of this legislation could be significant. Real-money gaming contributed nearly 85% of India’s gaming revenue in FY24, which amounted to approximately $3.2 billion out of a total of $3.7 billion. The broader gaming market, valued at $3.7 billion last year, was anticipated to grow to $9.1 billion by FY29, primarily driven by RMG. This sector also supports between 2 and 3 lakh jobs, according to estimates from consulting firm PwC.

Industry Response and the Future

Startups such as Dream11, MPL, Probo, and Games24x7 now confront existential threats, while investors who have invested billions into RMG may experience a decline in value. However, the government asserts that the ban is essential for addressing issues related to addiction, financial distress, fraud, and the risks associated with terror-funding. With the Bill now enacted, the outlook for real-money gaming in India appears bleak.