Online Gaming Bill 2025: Safer Digital Play

Newz Daddy Updates

Online Gaming Promotion and Regulation Bill, 2025Protection of the middle class and youth; promotion of e-sports and online social games

Introduction

The Online Gaming Bill, officially known as the Online Gaming Promotion and Regulation Bill, 2025, which was passed by Parliament on 21 August 2025, is a historic step to protect citizens from the dangers of online money games and to promote and regulate other types of online games. The legislation is designed to prevent addiction, financial ruin and social distress caused by predatory gaming platforms that thrive on the deceptive promises of quick money. It reflects the government’s resolve to protect families by leading the digital economy towards safe and constructive growth. The seriousness of this issue has been recognised globally. The World Health Organisation has classified gaming disorder as a health condition in its International Classification of Diseases, and describes it as a tendency to lose control, neglect other daily activities, and continue to play despite harmful consequences. This shows why decisive action is needed in India, too. Online money gaming platforms have caused widespread harm. Families have lost their savings. Young people have fallen into addiction. In some heartbreaking cases, the financial distress associated with these games has even led to suicide. The government has recognised these dangers and responded by enacting strict laws. At the same time, the Online Gaming Bill takes a balanced approach. It identifies the online gaming sector as one of the most dynamic sectors of the digital and creative economy, with significant opportunities for innovation, cognitive development, job creation, technological advancement and global competition. It promotes e-sports, which are organised competitive video games, and promotes safe online social and educational games. It clearly distinguishes creative digital entertainment from betting, gambling and fantasy money games that exploit users with false promises of profit. By doing so, the Online Gaming Bill ensures that India can embrace the benefits of digital innovation while simultaneously protecting its people from the dark side of online gaming.

 

See more

🎮 The #OnlineGamingBill2025 brings clear rules for the digital world — no misleading promises, no family distress, no security risks.@GoI_MeitY @MIB_India #DigitalIndia pic.twitter.com/Rzyduvo7Ok

— Ministry of Electronics & IT (@GoI_MeitY) August 20, 2025

Understanding the online gaming sector

The online gaming sector has grown rapidly in recent years and has now become a key component of the digital economy. It is broadly divided into three distinct segments, each with its own characteristics and impact on society. E-Sports: This refers to competitive digital games where teams or individuals compete in organised tournaments. Success in e-sports requires strategy, coordination, and advanced decision-making skills. Online social games: These are casual games that are part of everyday entertainment. They are primarily skill-based and designed for entertainment, education, or social interaction. Such games are generally considered safe and do not have negative social consequences. Online Money Games: This section includes games that involve financial stakes, whether based on chance, skill, or a combination of both. These platforms have raised serious concerns due to reports of addiction, financial loss, money laundering, and suicide cases linked to heavy financial losses.

Why was the bill needed?

The rapid spread of online money games has posed serious risks to individuals, families and the nation. Digital technology has brought many benefits, but these games have exploited legal loopholes and caused serious social harm. Union Minister for Electronics and Information Technology, Shri Ashwini Vaishnav, told the Rajya Sabha that according to an estimate, 45 crore people are negatively affected by online money games and have suffered losses of over Rs 20,000 crore. The Online Gaming Bill was brought in to remove these loopholes and protect citizens. At the same time, the online gaming sector is one of the most dynamic and fast-growing sectors of the digital and creative economy. India is emerging as a major game production hub with rapidly growing capabilities. The sector offers immense opportunities for innovation, job creation and global competitiveness. However, there is a lack of a coherent and enabling legal framework that can foster the infrastructural development of the sector and allow responsible gaming practices to flourish. Therefore, there was an urgent need for policy intervention. Moreover, many gaming platforms operate from offshore jurisdictions. Regulating these platforms poses challenges in terms of extra-territorial jurisdiction and inter-state discrepancies. Therefore, it was necessary for the Ministry of Electronics and Information Technology to legislate on this area in terms of business allocation rules.

The main reasons are:

• Addiction and financial ruin: Online money games encourage compulsive gambling. Many players lose their entire savings in the illusion of instant profit. Families are trapped in debt and distress.
• Mental health and suicide: There have also been cases of depression and suicide due to the stress of huge financial losses. The Online Gaming Bill attempts to prevent such tragedies by banning these exploitative platforms.
• Fraud and money laundering: Many platforms have been misused for illegal activities. Money laundering, which means hiding the source of illegal earnings by transferring them through legal channels, has been a major concern.
• Threat to national security: The investigation revealed that some gaming platforms were being used to finance terrorism and spread illegal messages, which posed a threat to the security of the country.
• Closing legal loopholes: Gambling and betting are already prohibited under Indian laws like the Indian Penal Code, 2023 and various state laws. But the online sector remains largely unregulated. The bill ensures that the same standards apply in both physical and digital spaces.
• Promoting healthy alternatives: The bill also creates space for positive digital engagement. E-sports will be promoted as a legitimate sport, while social and educational games that build skills and cultural values will receive government support.

Main provisions of the bill

The bill creates a comprehensive framework to promote safe digital entertainment, while also curbing harmful practices associated with online money games. Its key provisions are as follows:

Applicability

This law will be applicable throughout India and will also apply to online money gaming services operating within India or outside India.

Promotion and recognition of e-sports

E-sports has been recognised as a legitimate competitive sport in India. The Ministry of Youth Affairs and Sports will formulate guidelines and standards for tournaments. Training academies, research centres and technology platforms will be set up to promote the sector. Incentive schemes and awareness programs will also be launched to integrate e-sports into comprehensive sports policies.

Promotion of social and educational games

The Central Government has been empowered to identify and register safe and age-appropriate social games. These games may focus on education, culture or skills. Dedicated platforms will be developed to deliver such content. Awareness campaigns will highlight the positive role of these games in building digital literacy and promoting healthy entertainment.

Ban on harmful online money games

The bill imposes a complete ban on online money games. This applies to games of chance, games of skill and games that combine both. Advertising and promotion of such games is strictly prohibited. Financial transactions related to these platforms cannot be processed by banks or payment systems. Under the Information Technology Act, 2000, authorities will also have the power to block access to illegal platforms.

Establishment of an online gaming authority

A national-level regulatory authority will be established, or an existing authority may be designated for supervision. Its functions will include classifying and registering online games, determining whether a game qualifies as a gambling game, and resolving public complaints. The authority will issue guidelines, codes of conduct, and directives to ensure compliance.

Crimes and penalties

There is a provision for strict penalties. Offering or facilitating online money games can lead to imprisonment of up to three years and a fine of up to Rs 1 crore. There is a provision for similar penalties for financial transactions related to these games. Advertising such games can lead to imprisonment of up to 2 years and a fine of up to Rs 50 lakh. Repeat offenders will face severe punishment, including imprisonment of up to 5 years and a fine of up to Rs 2 crore. Under the key provisions, the offences will be cognizable and non-bailable, which means that the police can arrest without a warrant and there will be no right to seek bail.

Corporate and Institutional Responsibility

Companies and their officers will be liable for offences. However, independent directors and non-executive directors, who are not involved in day-to-day decisions, will not be penalised if they can prove that they exercised due diligence.

Investigation and enforcement powers

The Central Government may authorise officers to search, seize and seize digital and physical assets connected to crimes. In certain cases, officers will have the power to enter premises and make arrests without a warrant. The search will be in accordance with the provisions of the Indian Civil Defence Code, 2023, which governs criminal procedure in India.

Rule-making powers

The Central Government shall have the power to make rules for the promotion of e-sports and social games, recognition and registration of online games and functioning of the Online Gaming Authority. It may also make rules on any other matter required under this Act.

How does the bill benefit society?

The Online Gaming Bill is expected to bring wide-ranging benefits to society and the economy. Its major positive impacts are as follows:

• Boosting the creative economy: This bill supports India’s position as a hub for digital creativity. By promoting e-sports and safe online games it will increase export opportunities, create new jobs and foster innovation in the gaming sector.
• Youth Empowerment: Young people will have new opportunities to participate in safe and creative activities. E-sports and skill-based digital games will help them develop confidence, discipline and teamwork. These opportunities will also open up new career paths for talented players.
• Safer Digital Environment: Families will be protected from money-making gaming practices. These platforms often lure users with false promises of easy financial gains, which leads to addiction and distress. By eliminating such risks, the bill creates a healthy and safe digital space.
• Strengthening Global Leadership: India will emerge as a global leader in responsible gaming and digital policy. This bill demonstrates how a nation can strike a balance between innovation and social protection. It establishes India as a role model for other countries facing similar challenges associated with online money games.

Other notable initiatives to combat the dangers of online gaming

The government has taken several steps to protect citizens from the dangers of online gaming. These include addiction, financial fraud, money laundering, and cybercrime. The main steps are as follows:

• Information Technology Act, 2000 and related rules
  • The IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, amended in April 2023, set standards for online gaming platforms.
  • Online gaming intermediaries must ensure that illegal or illicit content is not shared on their networks.
  • Intermediaries offering money games are required to register with self-regulatory bodies (SRBs), which verify whether the game is acceptable.
  • Section 69A of the IT Act empowers the government to block access to illegal websites or links.
  • Between 2022 and June 2025, 1,524 betting and gambling websites and mobile apps were blocked.
• Indian Judicial Code, 2023
  • Section 111 penalises illegal economic activities and cybercrimes.
  • Section 112 provides for punishment for unauthorised betting and gambling. Offenders are liable to imprisonment for a minimum of one year, which may extend to seven years, and may also be fined.
• Integrated Goods and Services Tax Act, 2017 (IGST Act)
  • Illegal and foreign gaming platforms are regulated under the IGST Act.
  • Online money gaming suppliers must register under the simplified registration scheme.
  • The Directorate General of GST Intelligence has the authority to direct intermediaries to block access to unregistered or non-compliant gaming platforms.
  • This ensures that digital entities comply with the same tax rules as physical businesses.
• Consumer Protection Act, 2019
  • Prohibits misleading and deceptive advertising.
  • The Central Consumer Protection Authority (CCPA) has the power to investigate, fine and prosecute offenders.
  • The CCPA has issued an advisory to prevent celebrities and influencers from endorsing betting platforms.
• Advice from ministries
  • The Ministry of Information and Broadcasting (MIB) issued advisories to media platforms, advertisers and influencers in 2022, 2023 and 2024.
  • This advice warns against publishing or promoting misleading online betting advertisements.
  • The Ministry of Education has issued guidelines for parents and teachers on safe gaming habits for children.
• Reporting cybercrimes
  • Citizens can report cybercrime on the National Cybercrime Reporting Portal (cybercrime.gov.in).
  • Complaints are forwarded to the law enforcement agencies of the state or union territory.
  • The portal has a separate section for financial fraud.
  • Toll-free helpline – 1930 is available for immediate reporting of online scams and fraud.

Conclusion

The Online Gaming Bill is a crucial step in India’s digital journey. It recognises the risks of unregulated money gaming and puts in place stringent safeguards to protect citizens. At the same time, it creates space for e-sports and educational games that nurture skills and creativity. By striking a balance between innovation and responsibility, this bill lays the foundation for a safe and healthy digital future. It also strengthens India’s position as a nation that can play a leading role in shaping global digital policy. Most importantly, it ensures that technology serves society rather than harms it.

Also Read:

BJP Nominates C.P. Radhakrishnan for Vice President

PM Modi Inaugurates ₹11,000 Cr National Highway Projects In Delhi