{"id":16983,"date":"2025-09-18T05:37:19","date_gmt":"2025-09-18T05:37:19","guid":{"rendered":"https:\/\/jgu.edu.in\/jsgp\/jindal-policy-research-lab\/?p=16983"},"modified":"2025-09-24T06:39:21","modified_gmt":"2025-09-24T06:39:21","slug":"the-promotion-and-regulation-of-online-gaming-act-2025","status":"publish","type":"post","link":"https:\/\/jgu.edu.in\/jsgp\/jindal-policy-research-lab\/the-promotion-and-regulation-of-online-gaming-act-2025\/","title":{"rendered":"The Promotion and Regulation of Online Gaming Act, 2025"},"content":{"rendered":"\t\t
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by Sneha Singla Sneha is a second year undergraduate student at Lady Shri Ram College, pursuing an honours in Political Science with a minor in Economics.<\/em><\/p>\n\n

Introduction and Context<\/h5>\n\n

According to WHO, gaming disorder is a health condition marked by loss of control, neglect of daily activities and persistence despite harmful consequences. Online gaming is one of the fastest growing sectors in the digital economy, with diverse segments and notable technological prowess. As per the Mordor Intelligence report (2023), the Indian gaming market was worth<\/p>\n\n

USD 2.2 billion in 2023 and is expected to grow to USD 8.6 billion by 2028. 1<\/sup><\/p>\n\n

Yet, due the absence of a comprehensive legal framework to guide this growth, unregulated functioning has often resulted in irresponsible activity and harm. According to the Union Minister for Electronics and Information Technology, by mid 2025, 45 crore people are negatively affected by online money games and subsequently, have faced a loss of more than Rs. 20,000 crores. The 59th Report of the Parliamentary Standing Committee on Finance noted that illegal betting applications can pose national security<\/a> risks, such as using opaque payment routes, misusing the Liberalised Remittance Scheme (LRS)<\/a>, and financing criminal activities.<\/p>\n\n

Different states also have their own legislation. While Telangana banned all online gaming,<\/p>\n\n

Andhra Pradesh banned specifically online gambling. Similarly, Tamil Nadu banned games like Rummy and Poker. Karnataka and Chattisgarh have allowed skill-based gaming but prohibited betting. But the online sphere is universal, and therefore it is important for cohesive and<\/p>\n\n

comprehensive laws to be implemented. This blanket act would therefore allow for better implementation and coordination in efforts to curb illegal activity.<\/p>\n\n

https:\/\/www.mordorintelligence.com\/industry-reports\/india-gaming-market<\/u><\/a><\/p>\n\n

In this context, the new bill envisages twin functions: firstly, the regulation of safe online social and educational games, including e-sports and secondly, the prohibition of online money games.<\/p>\n\n

Key Features:<\/h5>\n\n

The bill addresses the following key issues: fraud, cybercrime, financial loss, mental health and suicides, threat to national security, and addiction.<\/p>\n\n

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  1. Categorisation: Firstly, the bill recognised and classified three kinds of online gaming activity as follows:<\/li>\n<\/ol>\n\n

    \u00a0<\/p>\n\n

    \n\n\n\n\n\n
    E-Sports<\/td>\nThese are organised competitive digital sports where individuals and\/or teams compete in a specific framework with pre-defined rules, based on skill (strategic thinking, mental agility, physical dexterity etc.)<\/td>\n<\/tr>\n
    Online Social Games<\/td>\nGames offered solely for entertainment, recreation or skill-development purposes. These do not include any bets or wagers, and may only involve fee payment for subscription or on-time access.<\/td>\n<\/tr>\n
    Online Money Games<\/td>\nIt is defined as an online game\u2013 based on skill, chance, or both\u2013 played by a user by paying fees, with expectation of winning monetary and other benefits in return of stakes.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n\n
      \n
    1. Online gaming authority: An central online gaming authority shall be set up, or an existing agency may be appointed to oversee the implementation of the Act. It will set up guidelines, categorise games, and address public grievances. The appointment, salary and disqualification of the members of such a committee shall be under the purview of the central government.<\/li>\n\n
    2. Development of E-sports: The said agency would be responsible for formulating rules and guidelines with regards to E-sports. At the same time, training academies, research centres and other such institutions under the purview of the Ministry for Youth Affairs and Sports<\/em>. Thereby, e-sports shall be integrated into the larger sports policy framework.<\/li>\n
    3. Promotion of online social games: They shall also be promoted by ensuring age-appropriate content and increasing awareness. Further, it envisions a mechanism for proper registration of these games. Lastly, programmes are to be created for encouraging both educational and recreational content.<\/li>\n
    4. Prohibition of money games: Games involving online wagering, bets or other financial impetus shall be strictly banned. As a result, no persons, media, or financial institutions must aid or abet such games. In case they do so, they must face penalties (including imprisonment upto 2 years and\/or fine upto 50 lakh rupees). The companies offering such services face even greater penalties (imprisonment upto 3 years and\/or fine upto 1 crore rupees)<\/li>\n<\/ol>\n\n