Online Gaming Promotion and Regulation Bill, 2025

Why  is news:

• On 21 August 2025, the Parliament passed the Online Gaming Promotion and Regulation Bill, 2025. The law is a significant step to protect citizens from the risks of online money games, while also promoting other types of online games and ensuring their proper regulation.

Online Gaming Sector:

In recent years, the online gaming sector has grown rapidly and has become a key component of the digital economy. It can be broadly divided into three categories, each with distinct features and societal impacts:

1. E-sports: Refers to competitive digital games in which teams or individuals participate in organized tournaments. Success in e-sports requires strategy, coordination, and advanced decision-making skills.
2. Online Social Games: Informal games meant for everyday entertainment. They are primarily skill-based and designed for fun, learning, or social interaction. These games are generally considered safe and have no negative social consequences.
3. Online Money Games: Games that involve financial stakes, whether based on chance, skill, or a combination of both. These platforms have raised serious concerns due to addiction, financial losses, money laundering, and even reports of suicides caused by substantial economic losses.

Need for the Online Gaming Bill, 2025:

• The rapid spread of online money games has caused economic and social harm to individuals and families. An estimated 45 crore people have been affected, with losses exceeding ₹20,000 crore.
• India is emerging as a major hub for the gaming industry, offering opportunities in employment, innovation, and global competition, but the sector lacked a structured legal framework.
• Some platforms operate from foreign jurisdictions, making regulation challenging.

Key Reasons for the Bill:

1. Addiction and Financial Ruin:
   • Online money games promote gambling-like habits.
   • Players lose their deposited funds, leading families into debt and crisis.
2. Mental Health and Suicides:
   • Stress from financial losses has increased cases of depression and suicide.
   • The bill aims to regulate exploitative platforms.
3. Fraud and Money Laundering:
   • Some platforms have been misused for illegal activities and money laundering.
4. National Security Threats:
   • Certain gaming platforms were being used for funding terrorism and spreading illegal messages.
5. Promotion of Healthy Alternatives:
   • The bill also supports 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.

Key Provisions:

Applicability:

• • The law will apply throughout India.
  • It will also cover online money gaming services that are operated from outside India or offered within India.

Promotion and Recognition of E-sports:

• • E-sports will be recognized as a legitimate competitive sport in India.
  • The Ministry of Youth Affairs and Sports will prepare guidelines and standards for tournaments.
  • Training academies, research centers, and technology platforms will be established.
  • Incentive schemes and awareness programs will be implemented to include e-sports in national sports policies.

Promotion of Social and Educational Games:

• • The central government will have the authority to register and recognize safe and age-appropriate social games.
  • These games can focus on education, culture, or skill development.
  • Dedicated distribution platforms and awareness campaigns will promote digital literacy and healthy entertainment.

Prohibition of Harmful Online Money Games:

• • A complete ban on online money games.
  • Applies to chance-based, skill-based, or hybrid games.
  • Advertising and promotion of such games will be prohibited.
  • Banks and payment systems will not process transactions related to these games.
  • Access to illegal platforms can be blocked under the Information Technology Act, 2000.

Establishment of Online Gaming Authority:

• • A national-level regulatory authority, or an existing authority, will be designated for oversight.
  • Functions include:
    • Classification and registration of online games.
    • Determining whether a game qualifies as a money game.
    • Redressal of public complaints.
    • Issuance of guidelines, codes of conduct, and directions.

Offenses and Penalties:

• • Offering or facilitating online money games: up to 3 years imprisonment + ₹1 crore fine.
  • Involvement in financial transactions related to these games: same penalty.
  • Advertising such games: up to 2 years imprisonment + ₹50 lakh fine.
  • Repeat offenses: up to 5 years imprisonment + ₹2 crore fine.
  • All offenses will be cognizable and non-bailable.

Corporate and Institutional Liability:

• • Companies and officers will be held responsible for offenses.
  • Independent and non-executive directors will be penalized only if they fail to exercise due diligence.

Powers for Investigation and Enforcement:

• • The central government can appoint officials with authority to:
    • Investigate, search, and seize digital and physical assets.
    • In certain cases, enter premises and arrest without a warrant.
  • Investigations will be conducted under the Indian Citizen Security Code, 2023.