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In a laudable move, the Parliament of India passed the Promotion and Regulation of Online Gaming Bill, 2025, which was assented to by the President on 22nd August 2025. The Act aims to bring about meaningful reforms in the online gaming sector in order to safeguard the society from the negative effects of online money games while promoting the safer alternatives.
The Need for Intervention
The gravity of the issue can be ascertained from the fact that WHO has classified ‘gaming disorder’ as a health condition in its 11th Revision of International Classification of Diseases. Gaming disorder is defined as a pattern of digital gaming behaviour characterized by impaired control over gaming, neglect of routine activities and increased tendency of playing despite its negative consequences.
In this light, it is not difficult to ascertain the legislative intent behind introducing this legislation. Online money games encourage compulsive playing leading to addiction, financial ruin, which eventually leads to psychological impacts like depression and in extreme cases even suicide. Serious concern stems from misuse of such platforms for money laundering, terror financing and illegal messaging, which makes such online gaming platforms a national issue necessitating government intervention.
Salient Features
Given the space constraints, we now succinctly delve into the major takeaways from this Act.
The key highlight of this Act is the balanced approach taken, wherein it clearly distinguishes between constructive digital recreation (esports and online social and educational games) from detrimental online games like betting, gambling and fantasy money games which exploit users on the pretext of quick profits. While the former would be encouraged, the latter is completely banned. It is noteworthy that this Act bans all types of online games involving financial stakes, whether they are games of skill or games of chance or involve both.
The Act gives legitimacy to E-sports and stipulates that the Ministry of Youth Affairs and Sports will prepare guidelines and standards for tournaments. It also provides for setting up of a national level regulatory authority entrusted with the task of categorising and registering online games, addressing public grievances and ensuring compliance with the law.
The Act also introduces strict punishments. Not only offering or facilitating online games but even advertising and promotion of such games has been made punishable, with jail terms and fine. Harsher punishments have been prescribed for repeat offenders.
Potential Impact
In order to appreciate the significance of this Act, it is important to look into the probable consequences it would have on the society as well as the nation at large.
From the perspective of an individual, the society and the economy, this Act would lead to various positive impacts like providing a safer digital environment to people by protecting them from predatory money gaming, give boost to digital creativity and promote innovation by encouraging e-sports and safe online gaming, and may even expand job and export opportunities.
It also brings about legislative coherence by banning online money games like betting and gambling, which were already restricted under laws like BNS and other state legislations. This ensures parity in physical and digital spaces, close legal loopholes by regulating the online domain which was until now largely unregulated and as a whole lead to legal efficiency.
However, the Act is said to have hit hard online gaming companies. With real money gaming banned, one of the fastest growing sectors of the economy has been jeopardized. With losses to such companies, the direct result would be a drastic level of job loss. This would be particularly problematic for a country like India where unemployment is already a pressing issue. Several estimates also point towards potential tax revenue and GST losses which may prove troublesome at the macroeconomic level.
So far, several judicial pronouncements have upheld the validity of skill-based online games, irrespective of whether or not they involve financial stakes. This eventually forms the basis of protection of such online gaming companies under the Article 19(1)(g), a fundamental right protecting freedom of trade. Thus, the Act may even face legal hurdles.
Conclusion
The attempt by the government to regulate the online gaming sector, especially games that involve financial stakes, is undoubtedly praiseworthy given that this sector was largely unregulated. While the implementation of this piece of legislation will certainly produce various positive outcomes, troubles seem unavoidable.
Nevertheless, given its national significance, this Act is expected to withstand legal challenges, though economic challenges may take longer to navigate. However, all depends on the proper enforcement, an area where India has often fallen short. Until then, hopes remain high.
Kanishka Chaudhary is pursuing her B.A., LL.B. (Hons.) from the National Law University, Jodhpur.
These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.