Online Gaming Bill Receives Presidential Assent, Becomes Law

22 August, 2025

The Promotion and Regulation of Online Gaming Bill, 2025 has become law after receiving assent from President Droupadi Murmu. The new legislation imposes sweeping restrictions on money-based online gaming platforms in India. It introduces stringent penalties, including imprisonment up to three years and fines up to ₹1 crore for operators, while advertising such platforms can lead to a two-year jail term and a ₹50 lakh fine. Several real-money gaming platforms have already suspended operations following the bill's passage.

Unpacked:

Why did the government ban real-money online gaming platforms?

The government cited national security and public health concerns, including money laundering, terror financing, tax evasion, and addiction leading to suicides and financial hardship. Evidence showed platforms were used for illegal fund transfers and manipulative designs that contributed to compulsive behavior and family distress.

What types of online gaming are still allowed under the new law?

The law permits and promotes e-sports, educational games, and social games. These are skill-based or entertainment-focused games without betting or monetary stakes. The government plans to register and support safe, age-appropriate games that foster digital literacy and culture.

Who will oversee the regulation and enforcement of online gaming under the bill?

A new central authority, the Online Gaming Authority, will oversee regulation, classify games, issue guidelines, investigate complaints, and enforce the law. The central government has powers to authorize officers to conduct searches, seizures, and arrests without warrants for violations.

What are the potential economic impacts of the ban on money-based gaming platforms?

India could lose around ₹20,000 crore annually in GST and income tax revenue from the banned real-money gaming sector. The bill aims to offset this by boosting the creative economy through support for e-sports and digital innovation, but concerns remain about lost jobs and investment.