The Online Gaming Regulation Bill 2025, aimed at banning online money games, has officially become law following Presidential approval.
The Centre introduced this bill in response to growing concerns over the harmful effects of online gaming on youth. With this legislation, all online money gaming services stand banned across India.
The new law prescribes strict penalties for promoting or advertising such games. Advertising online money games can lead to two years’ imprisonment and a fine of up to ₹50 lakh.
Promoting financial transactions related to money games carries a punishment of three years’ imprisonment and a fine of ₹1 crore. For repeat offenders, imprisonment may extend to five years, with fines up to ₹2 crore.
Crucially, the bill classifies offences under key sections as cognisable and non-bailable, making it tougher for violators to escape legal action.
While banning online money gaming, the law aims to promote and regulate e-sports, educational games and social sports.
The government will establish a central authority to oversee development in these areas. This body will guide the online gaming industry towards safe and productive practices.
The bill also prohibits operating, advertising, or participating in any online money game through computers, mobile devices, or the internet. Its preamble and the IT Minister’s speech stress the social harms linked to unregulated gaming, including addiction, financial loss, and mental health issues.
Former Uttarakhand High Court Justice Lokpal Singh welcomed the law, saying foreign gaming companies can no longer operate unchecked in India. He called for more safeguards to protect society and the younger generation.
However, legal experts raised constitutional questions. Supreme Court lawyer Virag Gupta noted that gambling is a state subject, and the Centre passed this law without consulting the states.
States like Tamil Nadu, Kerala, and Telangana had previously introduced similar laws, which later faced legal scrutiny.
Shaurya Tiwari, a lawyer with think tank CASC, acknowledged that many unemployed youths saw online gaming as a source of income. But she warned that most ended up losing their savings.
She called for clearer protections for minors, noting that Indian law bars children under 18 from entering valid contracts.
The law also demands that gaming companies follow the IT Intermediary Rules, which include robust grievance redressal systems to address fraud and exploitation.
\The UN Secretary-General has labelled online gaming the second biggest epidemic after climate change, further underscoring the need for this law.
With this legislation, India takes a strong step towards protecting its youth and society from the financial and psychological harms of online money games.
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