Introduction
The Promotion and Regulation of Online Gaming Bill, 2025 (“Bill”), was passed by India’s Parliament on August 21, 2025 and received Presidential assent on August 22, 2205. While the Bill aims to regulate and promote the online gaming sector, including e-sports and online social games, it imposes an outright ban on online money games and other ancillary services attached to the promotion or operation of online money games. The ban on online money games operates irrespective of whether the game is skill-based or chance-based.
The Bill recognizes that India possesses a large and growing pool of young professionals with technological capabilities and an expanding domestic market, which enables the country to be at the forefront when it comes to the global online gaming value chain. However, the lack of a coherent legal framework has also hampered the promotion of responsible gaming practices. To address a lacuna of an urgent policy in the gaming sector, the Bill also seeks to bridge the gap between inconsistent approaches by various States on games of chance versus games of skill.
Key Provisions of the Bill
The Bill broadly classifies online games into 3 (three) categories:
E-sports. E-sports are online skill-based games that may also be conducted as a part of a multi-sport event, and involve organized competitive events conducted in multiplayer formats governed by predefined rules. These games may include payment of registration or participation fees solely for the purpose of entering the competition or covering administrative costs, and may include performance-based prize money. The Bill recognises e-sports as a form of competitive sport in India and allows the Central Government to take steps which are necessary for the promotion of e-sports, including measures such as issuing guidelines and standards for e-sports events, establishing training academies and research centres, introducing awareness campaigns and coordinating with State Governments and sports federations for integration into broader sporting policies.
Online social games. These games, played over an electronic or digital device that is managed and operated through software, allow access through payment of subscription fees or a one-time access fee, for entertainment, recreation or skill-development purposes, but do not involve staking of money or other stakes with the expectation of winning by way of monetary gain in return for money or other stakes. The Bill includes registration requirements and other measures necessary to promote online social games such as the creation of a platform to support their development and distribution. However, there is no clarity on whether registration will be required for each category of game or by each gaming operator. Further, it is yet to be clarified if variations, feature updates and different iterations of the same game will require new registration.
Online money games. Online money games, irrespective of whether they are skill or luck based or both, are games where players deposit money or other stakes with an expectation of winning returns. The definition of an online money game specifically exempts e-sports. The Bill provides an outright ban on online money games, online money game services, and other ancillary services attached to the promotion or operation of online money games, whether within the territory of India or operated from outside the territory of India.
The Bill also imposes certain stringent measures to curb the offering, advertising, aiding, abetment, inducement, or otherwise indulging or engaging in offering online money games or online money gaming services. Punishments imposed include imprisonment for a term which may extend to 3 (three) years or with a fine which may extend to INR 1,00,00,000 (Indian Rupees One crore) or both. Banks and financial institutions also come under the Bill’s purview, where facilitation of any transaction or authorisation of funds towards payment for any online money gaming service is punishable.
Conclusion
The Bill empowers the Central Government to constitute a Gaming Authority to act as a platform that determines whether an online game is an online money game, registers online games, redresses complaints, issue guidelines, amongst others.
Read the bill at: https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=155075&ModuleId=3
Authors: Vishnudath Varma and Naasha Anklesaria
Publication Date: 28th August 2025
