EXPLAINER: What’s next for India’s gaming industry after the Online Gaming Bill, 2025? – Technology

The Bill aims to protect citizens from the menace of online money games, while simultaneously promoting and regulating e-sports and other online social games. The Bill is designed to curb addiction, financial ruin, and social distress caused by predatory gaming platforms that make false promises of easy and quick money.

Has the Bill been implemented?

No, the Bill is not implemented or enforced as it awaits the President’s nod. It will become an Act after the President’s approval and subsequent notification by the government. This process may last for years in some cases. However, government officials are of the view that the law may be enforced within the next three months — subject to the President’s approval.

Impact of the New Law on Gaming Firms in India

The online gaming industry is one of the most dynamic and fastest-growing parts of the digital and creative economy. India is emerging as a major game making hub with rapidly developing capabilities, offering immense opportunities for innovation, employment generation and global competitiveness.

Money-related games generated a annual revenue of $2.4 billion in FY 2024, which is 63 per cent of the entire gaming revenue, claimed a report by gaming investment firm Lumikai in November.

Moreover, government officials estimate a loss of $2 billion to the Centre in GST revenue annually. Companies in the domain predict a loss of 2 lakh jobs; however, the Central Government claims that the esports push will create many new roles in that arena.

The fantasy games can be played without involving money. For this to happen, companies will most likely depend on users willing to pay for the game itself or advertisements. However, this may not be as big an opportunity.

What next for money gaming firms?

There is a possibility for gaming companies to shift their businesses out of India. The US, China, and Japan give significantly higher financial returns; however, most online games are hyper-localised. This means that for them to move to international destinations requires a bulk of capital and proper understanding.

Key provisions of the Bill

The Online Gaming Bill, 2025 lays down a comprehensive framework to promote safe digital recreation while prohibiting harmful practices linked to online money games. Its main provisions are as follows:

Applicability: The legislation will apply to entire country and also to online money gaming service offered within the territory of India or operated from outside the country.

Promotion and recognition of e-sports: E-sports have been recognised as a legitimate competitive sport in India. The Ministry of Youth Affairs and Sports will prepare guidelines and standards for tournaments. Training academies, research centres and technology platforms will be set up to advance the sector. Incentive schemes and awareness programmes will also be launched to integrate e-sports into broader sports policies.

Promotion of social and educational games: The Central Government has been given powers to recognise and register social games that are safe and age-appropriate. These games may focus on education, culture, or skills. Dedicated platforms will be developed to distribute such content. Awareness campaigns will highlight the positive role of these games in building digital literacy and encouraging healthy recreation.

Prohibition of harmful online money games: The Bill imposes a complete ban on online money games. This applies to games of chance, games of skill, and those that combine both. Advertising and promotion of such games is strictly prohibited. Financial transactions related to these platforms cannot be processed by banks or payment systems. Authorities will also be empowered to block access to unlawful platforms under the Information Technology Act, 2000.

Establishment of an online gaming authority: A national-level regulatory authority will be established, or an existing one may be designated for oversight. Its functions will include categorising and registering online games , deciding whether a game qualifies as a money game, and addressing public grievances. The Authority will issue guidelines, codes of practice and directions to ensure compliance.

Offences and Penalties

The Bill introduces severe punishments for those involved in online money games. Offering or facilitating online games can result in up to three years of imprisonment and a fine of up to Rs 1 crore. Financial transactions related to these games carry similar penalties. Advertising such games can lead to a jail term of up to two years and a fine of up to Rs 50 lakh.

Repeat offenders face harsher punishments, including imprisonment of up to five years and fines of up to Rs 2 crore. Offences under key provisions will be cognisable and non-bailable, which means police can arrest without a warrant and bail is not a right.

Need of the Bill – Government’s view point

According to the Government, online money gaming platforms have led to widespread harm, including families losing their savings, young people becoming addicted, and in some tragic cases, suicides resulting from financial distress.

Speaking in the Rajya Sabha, Union Minister for Electronics and Information Technology, Ashwini Vaishnaw said that according to an estimate, 45 crore people are negatively affected by online money games and faced a loss of more than Rs 20,000 crores because of it. The Government has acted to close these gaps and protect citizens.

Additionally, many gaming platforms operate from offshore jurisdictions. Regulating these platforms presents challenges in terms of extra-territorial jurisdiction and inter-state inconsistencies. It was therefore expedient for the Ministry of Electronics & Information Technology to legislate over the sector in terms of Allocation of Business Rules.