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September 24, 2025

Summary: The Promotion And Regulation Of Online Gaming Bill, 2025

Author: Megha Hurkat

On August 22, 2025, the President assented the Promotion and Regulation of Online Gaming Bill, 2025, (The Act) marking a significant legislative milestone in India’s digital governance landscape. The Act aims to strike a balance between fostering innovation in the online gaming sector and curbing the harmful effects of online money gaming. It reflects a comprehensive and forward-looking approach to regulating one of the fast-growing segments of the digital economy.

The Act comprises 20 Sections organized across 6 Chapters, each addressing specific aspects of regulation, enforcement, and definitions related to online gaming in India. It establishes a comprehensive national-level legal framework aimed at ensuring uniformity in the regulation and enforcement of online gaming laws across states, thereby resolving cross-border and inter-state inconsistencies. The Act applies to online gaming services offered within India, as well as those operated from outside India but accessible to users within the country.

The Act imposes a clear prohibition on “online money games” [Section 2(1)(g)], defined as any online game that involves monetary or equivalent stakes, regardless of whether it is skill-based or chance-based. In contrast, the Act encourages the development of “e-sports” [Section 2(1)(c)], which are characterized by two distinct features: (i) outcomes determined purely by skill, and (ii) the absence of any monetary or similar wagering.

The central government may either set up a new authority or assign these functions to an existing one, with powers to assess whether an online game qualifies as an online money game, and to recognise, categorise, and register online games. The government will define the authority’s structure and specify the terms and conditions for appointments.

The Act, however, sets out strict penalties for violations. Under Section 5, individuals who offer or participate in online money gaming services may face imprisonment of up to three years and/or a fine of up to INR 1 crore. Section 6 penalizes the advertisement of such services with imprisonment of up to two years and/or a fine of up to INR 50 lakh. Further, Section 7 criminalizes any financial transactions related to online money gaming services, carrying penalties of up to three years in prison and/or a fine of up to INR 1 crore.

Significantly, offences under Sections 5 and 7 are classified as cognizable and non-bailable under Section 10, granting authorities powers of arrest without warrant and limiting bail. The Act thus takes a firm stance against monetary wagering in online gaming, while supporting skill-based, non-wagering digital competition.

Disclaimer: Views, opinions, interpretations are solely those of the author, not of the firm (ALG India Law Offices LLP) nor reflective thereof. Author submissions are not checked for plagiarism or any other aspect before being posted.

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