The Promotion and Regulation of Online Gaming Bill, 2025, was introduced in the Lok Sabha on August 20, 2025, and was passed by the Lok Sabha on the very same day. Subsequently, the Rajya Sabha passed it on August 21, 2025. On August 22, 2025, the said Bill received the assent of the President of India and was thereby made the Promotion and Regulation of Online Gaming Act, 2025 (“the Act”). Some key takeaways from the Act are elaborated below:
- The Act has defined and clearly demarcated the three forms of online games: – (1) e-sports (under Section (2)(1)(c)), (2) online money games, (under Section (2)(1)(g)) and (3) online social games (under Section (2)(1)(i)). While a framework has been put in place for regulating and promoting e-sports and social and educational games, online money games have been prohibited in entirety, irrespective of whether they are based on skill and/or chance, if they involve monetary stakes.
- The Act provides for penalties in the nature of imprisonment or fine for a person or a body incorporate who (1) offers/ aids/ abets/ induces/ indulges/ engages in online money games and services, (2) makes or causes to make to make advertisement in any media promoting online money gaming, (3) engages in transactions or authorisation of funds towards payment for any online money gaming service, as well as for repeat offenders.
- The Act applies to online money gaming services offered in India, as well as online money gaming services offered in India and operated from outside the territory of India.
- Under the Act, the Central Government may establish an Authority which will consist of a Chairperson along with such other members as may be required to effectively discharge its functions under the Act. Such Authority may be vested with the powers to determine whether a particular online game is an online money game or otherwise, to recognize, categorize and register online games in the prescribed manner, and perform any other functions stipulated under the Act.
- The Act also provides that any information generated, transmitted, received or hosted in any computer resource in relation to online money gaming service be blocked for public access in the prescribed manner, notwithstanding anything contained in the Act or Section 69A of the Information Technology Act, 2000.
While the legislation has recognized the rapid growth observed by the online gaming sector in India over the years, the Act has been introduced with the objective to promote and regulate the online gaming sector including e-sports, educational and social games. Most importantly, this legislation aims to protect individuals, especially youth and vulnerable populations, and curb addiction, financial ruin and social distress as a result of unregulated and unrestricted access to online money games. However, the present legislation has disregarded the judicial rulings and also, the Public Gambling Act, 1867, on the distinguishability of games of skill, judgement and strategy as compared to games of chance, gambling games, by imposing a blanket prohibition on online money games. As recognized by several judicial pronouncements over the years, games wherein skill substantially outweighs chances are protected as legitimate business activities, while restricting pure chance-based gambling. Moreover, one cannot overlook the adverse impact that this legislation may have on the online gaming industry stakeholders, especially in terms of employment opportunities, technological innovation and corporate restructuring of online gaming entities. Multiple petitions challenging the Act’s validity have been filed across various high courts, with the Supreme Court now consolidating all cases for a unified hearing.
Source: The Promotion and Regulation of Online Gaming Act, 2025