Rules for Online Gaming Bill 2025 garner applause from stakeholders; however, clarity in certain aspects remains a concern for industry veterans
The Promotion and Regulation of Online Gaming Bill 2025, tabled in the Lok Sabha by the Minister for Electronics and IT, Ashwini Vaishnaw, marks a significant step forward in the digital gaming sector of India. The bill aims to promote e-sports and online social games while prohibiting detrimental online money gaming services.
The bill defines three main categories of online games: e-sports, online social games, and online money games.
E-sports and Online Social Games
E-sports, as defined in the bill, are online games recognized under the National Sports Governance Act, 2025, played as part of multi-sport events involving organized multiplayer competitive formats governed by predefined rules. The outcome must be determined solely by skill elements such as physical dexterity, mental agility, or strategic thinking. While registration fees and performance-based prize money are allowed, betting, stakes, or wagering with the expectation of winnings is prohibited.
Online social games, on the other hand, are games offered primarily for entertainment, education, or skill development that do not involve monetary stakes or the expectation of winnings. Charging a subscription or access fee is permitted but these fees cannot operate as stakes in the game.
Online Money Games
Any online game, whether based on skill, chance, or both, where users pay a fee, deposit money, or place stakes in expectation of winning or gaining monetary or other rewards, falls under the category of online money games. These games are strictly prohibited under the Bill and exclude e-sports.
Penalties and Regulation
Non-compliance with the directions may result in a penalty of up to ₹10 lakh, suspension or cancellation of registration, and a prohibition from offering or promoting games. Advertising or promoting online money games carries a penalty of up to 2 years imprisonment or a fine of ₹50 lakh, or both. The penalties for offering online money gaming services are up to 3 years imprisonment, a fine of ₹1 crore, or both.
For repeat offences, there is a minimum of 3 years (up to 5 years) imprisonment and a fine between ₹1 crore to ₹2 crore for service-related violations. For advertising violations, there is a minimum of 2 years (up to 3 years) imprisonment and a fine between ₹50 lakh to ₹1 crore.
The bill also includes corporate liability, meaning that directors and officers may be held accountable unless they can prove a lack of knowledge or due diligence.
Recognition of e-Sports and Support from the Industry
The bill provides recognition to e-sports as a distinct sport and calls for a National e-Sports Authority and a National Gaming Authority to oversee regulation, classification, investigation, and blocking of unlawful platforms. The Indian Digital Gaming Society (IDGS) supports the government’s move, welcoming the recognition of e-sports and the distinction between real-money gaming and casual video games.
Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, stresses the need for clear definitions to distinguish between e-sports, social games, and real-money gaming. Kunal Gala, Partner at BDO India, considers the bill a watershed movement for the digital gaming sector in India.
Preventing Fraud and Money Laundering
Gaurav Sahay, Founding Partner of Arthashastra Legal, states that the Bill is comprehensive in scope and aims to prevent fraud, money laundering, and terror financing. The bill includes a provision for the establishment of an Online Gaming Authority for policy support, strategic development, and regulatory oversight.
In summary, the Bill promotes and regulates e-sports and social games as skill and entertainment activities without monetary wagering, while banning all real-money or betting-based online games to protect users from associated risks.
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