Online Gaming Bill: President Droupadi Murmu on Friday gave her assent to The Promotion and Regulation of Online Gaming Bill, 2025, a legislation that marks a turning point for India’s gaming industry.
Passed by both Houses of Parliament earlier this week, the Bill aims to promote e-sports and online social games while imposing a blanket ban on money-based gaming platforms.
The central government has made it clear that while players won’t face punishment, the burden of compliance will fall squarely on service providers, advertisers, promoters, and financial backers. Those violating the law could face stringent penalties, including imprisonment and heavy fines.
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E-sports to get legal recognition
Through this legislation, the Centre is looking to give e-sports long-awaited legal recognition. The Ministry of Youth Affairs and Sports will set up a dedicated framework to support e-sports, now recognised as a legitimate competitive sport in India. Online social games will also get a push under the new policy framework.
According to sources, the bill will help provide legal support to e-sports. Earlier, there was no legal backing for e-sports.
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Ban on money gaming to curb addiction and misuse
The government believes the ban on money gaming platforms is necessary to counter addiction, financial ruin, and extreme cases like suicides. Officials also cited concerns over money laundering and terror financing linked to such platforms.
Failing to comply with the law could mean up to three years in jail and fines of up to Rs 1 crore for offering or facilitating money-based games. Advertising such games may lead to imprisonment of up to two years and fines of up to Rs 50 lakh. Repeat offenders will face harsher punishments, with jail terms extended to five years and fines doubled to Rs 2 crore.
To enforce the law, the Centre will empower officers to investigate, search, and seize property linked to offences. In certain cases, authorities may also enter premises and make arrests without a warrant.
Revenue loss versus social safeguard
Acknowledging the financial implications, Secretary, Ministry of Electronics and IT, S Krishnan said the move could cost the exchequer an estimated Rs 15,000–20,000 crore annually in GST losses.
“We also have to draft the rules under the bill, and issue the rules which are required to be drafted. As the bill is structured, even without rules, because the rules govern certain aspects, there are certain provisions in the bill which can come into force without the rules, but that is a decision we will take,” Krishnan told ANI.
He added that safeguarding public interest outweighed revenue concerns. “I think when the government has a larger social objective in mind, I think revenue loss is not the primary consideration. In any case, the bill had the approval and the consent of the Finance Ministry as well.”
On when the law will come into effect, Krishnan said, “We are working on it, should get it done quickly.”
