What's Brewing

Background 
With the advent of the Internet and the quest for newer venues of entertainment ever increasing among people, ‘online gaming’ has grown into the single most popular segment of digital economy that provides unlimited opportunities for creative innovation and employment generation, enables cognitive development in people and stands out as a symbol of technological advancement and global competitiveness. Online gaming comprises e-sports, social games and ‘betting’ games i.e. games that involve speculation.    

Over time, elements of ‘gambling’ and ‘money’ entered ‘online gaming’ and exposed unwary players to huge financial risks. Technological advancements made this social menace omnipresent on all digital platforms including mobile phones. The absence of a regulatory legal framework and administrative rules enabled unscrupulous players to exploit the segment for profiteering at the expense of the public at large. 

The Act
It is in this background that the government has introduced a bill – ‘The Promotion and Regulation of Online Gaming Bill, 2025’. The Bill was passed by Lok Sabha on 20th August 2025 and by Rajya Sabha on 21st August 2025. The President of India gave assent  on 22nd August 2025making way for the Bill to become an Act.

Salient features of the Act

1. ‘online game’ is any game that can be played on a digital device through an operational software that is available on the Internet or on any other information platform deploying electronic communication. 
2. ‘online money game’ is any game in which player deposits money or any other monetary instrument, either as entrance fee or as an investment, with the intention of winning money or other forms of enrichments, irrespective of whether the game is based on skill or chance or both. Note: online money games are strictly and completely prohibited under this Act. 
3. ‘online social game’ is any game that does not involve money as an investment for playing or as a prize for winning and is played solely for the purpose of recreation, entertainment or skill development.      
4. ‘e-sport’ has a clear definition which is inclusive of, but not limited to, the following:
   – competitive events between individuals or teams that are conducted under predetermined rules.
   – outcome is determined solely by factors such as physical dexterity, mental agility, strategic thinking or other similar skills of the players.
   – recognised under the National Sports Governance Act, 2025 and duly registered with the Authority established by the central government for the purpose of this Bill. 
   – shall not involve placing or winning of bets or wagers by any individual, whether a participant or not.
5. The only permissible involvement of money in an e-sport, is by way of: 
   – fees for registration or participation solely for the purpose of accessing the game. 
   – fees for meeting the administrative costs of the software.
   – prize money for the players based on predetermined performance criteria.
6. The Authority constituted by central government for administering and regulating online gaming, shall:
   – comprise a chairperson and as many members as required.
   – receive applications from promoters of e-sports and online social games.
   – recognise, categorise and register the applications received.
   – designate existing sports authorities or appoint additional agencies to assist its functioning.
   – establish training centres and research academies for the advancement of e-sports.
   – execute all other measures necessary to promote the e-sports and social gaming sector.           
7. Advertisement of any kind by individuals, either personally or in the media, to canvas or promote online money gaming is strictly prohibited without exception. 
8. No bank, financial institution or individual money lender shall be involved in facilitating online money gaming in any manner whatsoever. 
9. Central government is empowered to block all advertising, canvassing or dissemination of information pertaining to online money gaming and related services from reaching the public.
10. Any individual who offers an online money gaming service shall be liable for punishment of imprisonment of up to three years or a penalty of up to rupees one crore or both.   
11. Any individual who indulges in advertising or promoting an online money gaming service shall be liable for punishment of imprisonment of up to two years or a penalty of up to rupees fifty lakhs or both.
12. In the case of companies, all the persons directly responsible for offering or advertising an online money gaming service shall be liable to similar punishment.
13. Central government can authorise any officer or class of officers of its own government, state government or the constituted Authority to investigate offenses under this Bill, irrespective of the provisions of any other existing laws.
14. Irrespective of the provisions of the Bharatiya Nagarik Suraksha Sanhita, such authorised investigation officers can enter any physical or digital premises, conduct searches of these premises and arrest any person found suspicious of indulging in online money gaming services, without any prior warrant or permission.
15. Any action taken in good faith by investigating or administrative officers of the Authority, central or state governments under this Bill shall not be subjected to any suit, prosecution or other legal proceedings.

The Act will go a long way in protecting the public from the risks and dangers arising out of online money gaming.

For full text of the Act:
https://www.meity.gov.in/static/uploads/2025/08/4f673438a686e3fa81dd2d277b445f42.pdf