New Online Gaming Bill clears path for e-sports while shutting doors on RMG apps

New Online Gaming Bill clears path for e-sports while shutting doors on RMG apps

New law recognises esports, supports skill-based gaming, and bans poker, rummy, fantasy sports, and other money-game apps across digital platforms

e4m by e4m Staff
Published: Aug 20, 2025 7:06 PM  | 3 min read
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Union Minister of Information and Broadcasting, Ashwini Vaishnaw, introduced the Promotion and Regulation of Online Gaming Bill, 2025, in Lok Sabha today, designed to position India as a global hub for creative and innovative game development. While the Bill promotes e-sports and socially beneficial gaming, it strictly prohibits harmful money-gaming practices such as online betting, fantasy sports involving wagers, poker, rummy, and lotteries.

Policymakers stressed that while these digital advancements bring enormous benefits, they also introduce new risks, particularly in the online gaming sector.

Promotion and Recognition of E-Sports
The Bill recognises e-sports as a legitimate competitive sport. The Ministry of Youth Affairs & Sports will frame guidelines and standards, while also establishing training academies, research centres, and technology platforms to nurture esports talent. Additional schemes will provide incentives, raise awareness, and mainstream esports into national sports programmes.

Promotion of Social and Educational Games
The government will extend support for safe, educational, and cultural online games through MeitY and the Ministry of Information & Broadcasting. These games will be recognised, categorised, and registered, ensuring their alignment with age-appropriateness, skill development, digital literacy, and Indian cultural values.

Prohibition of Harmful Online Money Games
A total ban will apply to online money games regardless of whether they are based on skill or chance. This includes not only the games but also their advertising, promotion, and financial transactions. Banks and payment systems will be barred from processing transactions linked to such platforms. Authorities will be empowered under the IT Act, 2000 to block access to non-compliant gaming sites.

Establishment of an Online Gaming Authority
A national-level authority will oversee registration, categorisation, and grievance redressal for games. It will also determine which games qualify as money games, while issuing codes of practice and compliance guidelines.

Offences and Penalties
Violations such as offering or facilitating money games will attract up to three years imprisonment and/or fines up to ₹1 crore. Advertising money games could lead to a two-year jail term and fines of ₹50 lakh. Repeat offenders could face harsher punishments — three to five years of imprisonment and fines up to ₹2 crore. All offences under key provisions will be cognizable and non-bailable.

Corporate and Institutional Liability
Companies offering illegal money gaming, along with their officers, will be held liable. However, those who can prove due diligence will avoid punishment, while independent and non-executive directors not involved in operations will be protected.

Investigation and Enforcement Powers
The government can authorise officials to search, seize, and investigate digital or physical property linked with offences. In certain cases, officers will have the power to arrest without a warrant. These procedures will be governed by the Bharatiya Nagarik Suraksha Sanhita, 2023.

Positive Impacts of the Bill
The government asserts that the Bill will enhance India’s creative economy, generating exports, employment, and innovation in gaming technologies. By promoting esports and educational games, it will empower youth through constructive participation while ensuring a safe digital environment for families, shielding them from predatory gaming practices. Moreover, the Bill aligns digital law with existing restrictions on gambling in the physical world, strengthening consumer protection and national security against fraud, money laundering, and terror financing.

The initiative follows centre’s broader ‘Digital India’ vision, which has advanced through innovations such as UPI, 5G infrastructure, semiconductor growth, and digital public infrastructure. The cabinet describes it as a responsible, innovation-driven policy that not only safeguards society but also positions India as a global leader in digital gaming regulation and innovation.
Published On: Aug 20, 2025 7:06 PM