India has taken a decisive step towards implementing a uniform framework for on-line gaming regulation. The Union Cabinet, chaired by Prime Minister Narendra Modi, has authorized the Promotion and Regulation of Online Gaming Bill, 2025, designed to ban real-money on-line video games whereas creating readability in a quickly increasing business.
Legislative Push for Regulation
The invoice, launched within the Lok Sabha by Union Minister for Electronics and Information Technology Ashwini Vaishnaw, instantly drew opposition protests, briefly disrupting proceedings chaired by PC Mohan. The measure represents the nation’s first try to ascertain nationwide oversight within the on-line gaming sector, which till now has operated beneath a patchwork of state-level guidelines.
According to the draft laws, a sport can be thought of an on-line cash sport if it entails paying charges, deposits, or different stakes with the expectation of monetary returns. Significantly, the invoice makes clear distinctions between such video games and eSports or social gaming platforms, which aren’t coated by the prohibition.
MeitY Secretary S Krishnan emphasised that the choice addresses social and public security issues, stating, “This is a societal decision.” He defined that the intent will not be solely to limit dangerous practices but in addition to acknowledge the creativity and development potential of segments like eSports, which the federal government plans to assist by way of regulated channels that don’t contain financial incentives.
Penalties and Oversight
Under the proposed regulation, operators, advertisers, and monetary intermediaries concerned with on-line cash video games may face strict penalties. Offenders could also be sentenced to as much as three years in jail or fined as much as ₹1 crore (roughly $120,000), whereas promoters and advertisers danger as much as two years of imprisonment and fines of ₹50 lakh. Financial establishments that course of transactions associated to such video games can be topic to related penalties.
Repeat offenders will face harsher penalties, with imprisonment phrases extending as much as 5 years and considerably greater fines. Importantly, gamers themselves will not face prosecution, because the laws views them as victims of exploitation relatively than perpetrators.
The invoice additionally requires the creation of a regulatory authority to categorize video games, guaranteeing readability for operators, gamers, and regulation enforcement. This physique will oversee registration and compliance, in addition to decide whether or not a specific sport qualifies as an internet cash sport.
Industry and Public Reactions
The authorities maintains that the invoice prioritizes public safety, citing rising issues over playing habit, fraudulent platforms, and psychological well being points. Public well being voices, comparable to Preetha Reddy, Executive Vice Chairperson of Apollo Hospitals, expressed assist for the measure on X (previously Twitter): “The new Online Gaming Bill is more than regulation, it is protection. Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity.”
However, business representatives have warned that the laws may have far-reaching financial penalties. Organizations, together with the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of India Fantasy Sports (FIFS) issued a joint assertion warning that the regulation may “destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India’s position as a digital innovator.”
These teams additionally cautioned that banning regulated platforms might drive thousands and thousands of customers towards unlawful offshore operators and unregulated markets, growing dangers of fraud and cash laundering. They highlighted that the web ability gaming sector has grown into a ₹2 lakh crore industry, contributing round ₹31,000 crore in annual income and producing over ₹20,000 crore in taxes. The sector, increasing at a fee of 20% CAGR, was projected to double by 2028, with India’s gamer base rising from 36 crore in 2020 to over 50 crore in 2024. Foreign direct funding within the business had already surpassed ₹25,000 crore by mid-2022.
If Parliament passes the invoice, it is going to develop into India’s first complete nationwide framework for on-line gaming, balancing assist for protected digital leisure whereas imposing stringent penalties in opposition to dangerous real-money gaming platforms.
Sources: Gaming Bill: Cabinet approves legislation to regulate online real money gaming platforms; to be tabled in Lok Sabha on this day, timesofindia.indiatimes.com, August 20, 2025.
