The Online Gaming Bill

Background

Now an Act of Parliament having received the requisite executive approval in August 2025, the Promotion and Regulation of Online Gaming Act 2025, represents a key development in regulating digital gaming in the country. Passing the Act of Parliament has quite the record, the Lok Sabha completing the task on August 20, 2025, in a mere 7 minutes, and the Rajya Sabha soon after. The Government upon notification of the Act on August 22, 2025, has established a framework for encouraging legitimate gaming and for the first time in the country, expunging the online money gaming from the country.

Applicability

The Online Gaming Act of 2025 walks the unprecedented line of legal authority by covering all aspects of the digital gaming network of India.

  • Implementation Across the Country: As an Act of Parliament, it adroitly legalizes the streamlined procedures of licensing, classification, and regulation of online gaming across India.
  • Applicable Beyond the Country’s Boundaries: Tackles the issue of foreign operators skirting the domestic regulations by applying to offshore platforms catering to Indian users.
  • Encompassing All Stakeholders: Gamers, platform operators, financial institutions, advertisers, and service providers.
  • Encompassing all Activities of Gaming: Covers e-sports and social games while prohibiting the harmful online money gaming services, advertisements, and associated financial transactions.

This legislative framework ensures no entity in the gaming ecosystem can escape regulatory oversight, establishing uniform standards nationwide.

Purpose of the Bill

The Act undertakes a dual-phased approach by ‘de-fending’ the citizens from malpractices while promoting the gaming industry. 

  • E-sports Recognition: e-sports has been included under competitive sports and provisions are being made to set up e-sports training and research centres. India’s goal is to strengthen it’s global e-sports presence through innovative policies under the National Sports Governance Act, 2025.
  • Social Gaming Development: Encourages the creation of socially and educational games that are safe, age-appropriate, and culturally relevant, to develop skills and digital literacy.
  • Innovation Catalyst: Develops technological innovation and homegrown gaming content that fuels the creative economy.
  • Global Hub Development: Develops India’s reputation as a responsible global online gaming centre for innovation driven growth.
  • Complete Ban on Money Games: Imposes a blanket ban on online money games, including betting, gambling, fantasy sports, poker, rummy, and the online money lottery to curb financial exploitation.
  • Youth and Vulnerable Protection: Bans the activities of predatory apps that target the youth and economically disadvantaged.
  • Family Protection: Shields families from the gambling and reckless gaming driven debt and psychological distress.
  • National Security: Deals with money laundering,

Important Definitions

The Act provides precise definitions forming the foundation of its regulatory framework as per Section 2:

  • Advertisement: shall have the meaning as assigned to it in the Consumer Protection Act, 2019;
  • Authority: means an Authority constituted under section 8;
  • E-sport: means an online game which—
    • is played as part of multi-sports events;
    • involves organised competitive events between individuals or teams, conducted in multiplayer formats governed by predefined rules;
    • is duly recognised under the National Sports Governance Act, 2025, and registered with the Authority or agency under section 3;
    • has outcome determined solely by factors such as physical dexterity, mental agility, strategic thinking or other similar skills of users as players;
    • 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 by the player; and
    • shall not involve the placing of bets, wagers or any other stakes by any person, whether or not such person is a participant, including any winning out of such bets, wagers or any other stakes;
  • Internet: means the combination of computer facilities and electromagnetic transmission media, and related equipment and software, comprising the interconnected worldwide network of computer networks that transmits information based on a protocol for controlling such transmission;
  • Notification: means a notification published in the Official Gazette and the term “notify” shall be construed accordingly;
  • Online Game: means any game, which is played on an electronic or a digital device and is managed and operated as a software through the internet or any other kind of technology facilitating electronic communication;
  • Online Money Game: means an online game, irrespective of whether such game is based on skill, chance, or both, played by a user by paying fees, depositing money or other stakes in expectation of winning which entails monetary and other enrichment in return of money or other stakes; but shall not include any e-sports;
  • Online Money Gaming Service: means a service offered by a person for entering or playing the online money game;
  • Online Social Game: means an online game which—
    • does not involve staking of money or other stakes or participation with the expectation of winning by way of monetary gain in return of money or other stakes;
    • may allow access through payment of a subscription fee or one-time access fee, provided that such payment is not in the nature of a stake or wager;
    • is offered solely for entertainment, recreation or skill-development purposes; and
    • is not an online money game or e-sport;
  • Other Stakes: means anything recognised as equivalent or convertible to money and includes credits, coins, token or objects or any other similar thing, by whatever name called and whether it is real or virtual, which is purchased by paying money directly or by indirect means or as part of, or in relation to, an online game;
  • Person: includes—
    • an individual;
    • a Hindu undivided family;
    • a company;
    • a firm;
    • an association of persons or a body of individuals, whether incorporated or not;
    • the State; and
    • every artificial juristic person, not falling within any of the preceding sub-clauses;
  • Prescribed: means prescribed by rules made under this Act;
  • User: means any person who accesses or avails online game.

Penalties & Punishments

  • Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.
  • In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall undertake an enquiry for verification of the details of Udyam Registration submitted by the enterprise and thereafter forward the matter with necessary remarks to the Director or Commissioner or Industry Secretary concerned of the State Government who after issuing a notice to the enterprise and after giving an opportunity to present its case and based on the findings, may amend the details or recommend to the Ministry of Micro, Small or Medium Enterprises, Government of India, for cancellation of the Udyam Registration Certificate.
  • Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the Act.

For More Information: https://www.dcmsme.gov.in/Notification-S.O-no-1364-E-dated-21.03.2025-Revised-Definition.pdf

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