New Delhi: President Droupadi Murmu on Friday approved The Promotion and Regulation of Online Gaming Bill, 2025, which was recently passed by Parliament. This legislation aims to promote e-sports and online social games while prohibiting harmful online money gaming services, including advertisements and financial transactions associated with them.
The Bill imposes a complete ban on offering, operating, or facilitating online money games, regardless of whether they are based on skill or chance. The Bill, which received approval from both the Lok Sabha and Rajya Sabha, specifies that players of online money games will not face penalties; instead, the consequences will be directed at service providers, advertisers, promoters, and financial backers of such games. The government intends to provide legal recognition and support for e-sports, which have been acknowledged as a legitimate competitive sport in India. A dedicated framework for e-sports will be established by the Ministry of Youth Affairs and Sports. The legislation is designed to mitigate the risks associated with online money gaming, such as addiction, financial losses, and severe outcomes like suicides. Concerns regarding money laundering and terror financing have also been highlighted. Violations of the law can result in significant penalties, including imprisonment of up to three years and fines reaching Rs one crore for facilitating online money gaming. Advertising such games may incur imprisonment of up to two years and fines of up to Rs 50 lakh. Repeat offences could lead to enhanced penalties, including longer imprisonment terms and higher fines. The Central government will have the authority to investigate and seize property linked to these offences, with officers empowered to act without a warrant in certain situations. Following the President’s assent, a notification will be issued to announce the effective date of the Bill, and rules governing its implementation will be drafted. The Secretary of the Ministry of Electronics and IT has indicated that while the legislation may lead to a loss in GST collections estimated at Rs 15,000-Rs 20,000 crore annually, the primary focus remains on safeguarding social interests and ensuring responsible regulation of the online gaming sector.
