ONLINE GAMING: PROMOTION AND REGULATION OF ONLINE GAMING ACT, 2025
Source: AI-generated Image (Gemini)
Introduction:
Online gaming has seen an exponential growth in recent times, enabling innovation, job creation,
technological advancements etc. India has a rising number of professionals with technological
capabilities and a fleetly growing domestic market, which together enable the country to assume
a leadership role in the global online gaming value chain. The online gaming ecosystem
comprises mainly of these elements: e-Sports, casual and social games, educational games, and
online money games.
Nevertheless, some platforms offering online gaming systems may frequently be aggressively
promoted through advertising juggernauts, including promotions by celebrities and influencers,
enhancing their reach and impact especially among the youth and vulnerable groups, with some
of them being linked to illegal conditioning similar as fiscal fraud, money laundering, non-
payment of taxes, and also, the backing of terrorism, thereby putting at threat the public security,
public order and the integrity of the country.
Phases of Growth of Online Gaming in India
● Cyber Café Era (Early 2000s – 2010): Gaming was centered around physical spaces
like cyber cafes with games like Counter-Strike, Need for Speed, and web-based games
like Farmville on Facebook. This was, however, limited to urban centers with access to
personal computers and good internet connections.
● Mobile Games (2010 – 2016): This phase brought with it the development of 3G,
followed by affordable 4G data, as well as the proliferation of low-cost smartphones.
Mobile games such as Temple Run also gained popularity, vis-à-vis money games such
as RummyCircle, in the mainstream market.
● The “Jio Effect” and E-Sports (2016 - 2020): The Jio Effect of 2016 provided
free/low-cost data, bringing the internet to millions. As per data from a Share India
report, games like PUBG Mobile and Free Fire are favorites, among its users. The growth
of platforms like YouTube Gaming and Twitch led to streamers bringing in a "viewer as
a player" audience.
● The Impact of a Pandemic (2020 – 2024): COVID-19 lockdowns saw an exponential
rise in the demand of online gaming. These lockdowns had overseen a rapid-fire growth
of in-app purchases, fantasy sports (Dream11), and e-sports events with massive prize
pools. This resulted in gaming becoming a popular and legitimate career path, thereby
giving rise to the e-sports industry.
● Regulatory Reforms (2025 – present): The online gaming industry meandered towards
stricter regulation, such as the online money gaming ban of 2025. So, a lot of attention
was paid to games and the right way to do gaming with the casual games. Influencers and
streamers have turned gaming into entertainment content.
Need for the Regulation of Online Gaming
Ashwini Vaishnaw, Union Minister of Information and Broadcasting, Government of
India, said the Act was made in response to grievances from people who lost their money
in online money games, and that it was not a knee-jerk reaction. For instance, a 35-year-
old man from Neemuch District of Madhya Pradesh also took his own life after suffering
heavy fiscal losses due to being addicted to online gaming.
The Union Minister also stated the algorithms of these online games refrain a game
player from winning them in the long run. It was also alleged that some gaming
companies were participating in unlawful GST tax evasion of up to ₹30,000 crore. The
Online Gaming Bill was thus introduced to regulate the online gaming sector in India,
since it was in operation without any proper legal framework.
Salient Features of the Act
The Promotion and Regulation of Online Gaming Bill, 2025 was introduced in the
Parliament in August 2025 and was passed in both Houses.
● Ban on Games: There is a ban on online money games. Thus, the Act disallows games
where people can bet money. If you play these games or help in managing them, you are
violating the law and will have to face severe penalties.
● Establishment of Regulatory Authority: It is paramount to have an authority to watch
over these games. The Central Government is empowered by the Act to create this
Authority to oversee games and will decide if a game is a money game or a non-money
game.
● Offences and Penalties: The Act describes what is considered an offence and what
penalty we will get for that offence. Offences include offering, running, or helping with,
or telling people about, online money games. This comes with an imprisonment of up to
three years plus a fine that can be as high as ₹1 crore.
● Restricted Financial Transactions: Financial transactions are also restricted. The Act
states that banks and places that handle money cannot do business with people who play
games that involve money.
● Control on Advertising: Advertising is under control, too. The Act states that people are
not allowed to tell others about online money games. The Act makes it very clear that
online money games that are not allowed cannot be trumpeted or promoted in any
manner.
● Support for Non-Money Games: The Act, as such, does not impose any ban on users
from playing games that do not involve any money at all. In fact, it is okay with non-
money games. The Act also encourages the growth of e-sports.
● Safety for Users: The Act makes it compulsory for users to verify their age and identity
to play online games. It also recommends tools to limit playtime and spending for games
permitted.
Demerits of the Act
● Rise of Black Markets: If a lot of money games are banned, people will probably go to
other websites that are not safe, or are against the law. Monitoring such games to detect
financial fraud among many other money scams will then become a herculean task.
● Ignorance of Precedents on Skill Games: Critics opine that the Act ignores judicial
precedents that differentiate skill-based games from gambling, which could give rise to
legal problems.
● Weak Consumer Protection: Directing users of online games towards illegal platforms
decreases safety nets, making players more susceptible to fraud.
Concluding Remarks
The Promotion and Regulation of Online Gaming Act, 2025 is designed to significantly
reduce the risk of addiction, financial ruin, and suicide linked to online gaming. Online
gaming is changing with time. It is now more about keeping users safe and looking after
their health. The emphasis is now laid more on skill-based games, not the games
pertaining to betting and gambling. The online games have to do what the Act says. This
is to keep users safe and secure while playing these online games. Online games must be
safe for its users.
Jay Nayan Mopur & Mettu Kalyan, 2/3, Pendekanti Law College.
