The Promotion and Regulation of Online Gaming Act, 2025 creates a legal framework to oversee online gaming. It aims to promote safe digital recreation and prohibit harmful practices. 

1. Nationwide Applicability 
   The Act applies across India. It also covers any online money-gaming service offered within India or operated from abroad but targeting users in India. Offshore platforms offering real-money games to people in India fall within the ban, closing loopholes for overseas operators. 

2. Promotion of E-Sports 
   E-sports are recognised as legitimate sports. The Ministry of Youth Affairs and Sports will set a framework for promotion, including guidelines and tournament standards. Measures include training academies, research centers, technology platforms, incentives, and awareness programs to integrate e-sports into mainstream policy and build a grassroots-to-pro ecosystem. 

3. Support for Social & Educational Games 
   The central government can recognise and register safe, age-appropriate “social games,” including those focused on education, culture, or skill development. It may create distribution platforms and conduct awareness campaigns to highlight constructive uses of gaming provided no money or betting is involved. 

4. Complete Ban on Online Money Games 
   There is a total prohibition on online money games in India (pib.gov.in). Any game of chance, skill, or a mix, where users stake money for winnings, is illegal to offer, operate, or facilitate. Advertising such games is forbidden; financial institutions and payment providers cannot process related transactions. The government can block access under the IT Act, 2000. This covers fantasy sports for stakes, online poker/roulette/rummy for stakes, betting apps, and similar services. The ban targets providers and promoters, not players, individual participants are not criminally punished  

5. Online Gaming Authority 
   A central Online Gaming Authority will regulate the sector. It will categorise and register games, decide if a game is an “online money game” requiring prohibition, and handle public grievances. It can issue guidelines, codes of practice, and compliance directions. Operational details will be set through government rules. 

6. Offences and Penalties 
   Offering or facilitating an online money-gaming service can attract up to 3 years’ imprisonment and a fine up to ₹1 crore. Processing payments for such games carries the same maximum penalty. Publishing or advertising can lead to up to 2 years imprisonment and a fine up to ₹50 lakh. Repeat operators face up to 5 years imprisonment and ₹2 crore; repeat advertisers face 2–3 years with higher fines. Offences are cognizable and non-bailable, enabling arrest without a warrant and restricting automatic bail. 

7. Company and Executive Liability 
   If a company commits an offence, both the company and persons in charge can be liable. Directors and key management may be punished, but those not involved in day-to-day decisions  have a due-diligence defence. This ensures accountability without unfairly penalising uninvolved individuals. 

8. Investigation and Enforcement Powers 
   Authorised officers may investigate, search, and seize digital or physical evidence tied to online-gaming offences. In serious cases, they may enter premises and arrest without a warrant, following the Bharatiya Nagarik Suraksha Sanhita, 2023. These powers enable swift action against illegal operations, including servers, offices, and bank accounts. 

9. Rule-MakingAuthority 
   The central government has broad rule-making powers for implementation. Rules may cover e-sports and social-game promotion, recognition/registration processes, the Authority’s functions, and enforcement procedures. As of August 2025, drafting of rules is underway, and a notification will announce commencement. Once notified, the ban on online money games is expected to take effect immediately, with no transition period.  

Expected Benefits and Impact 

Beyond prohibiting harmful gambling, the Promotion and Regulation of Online Gaming Act is envisioned to have significant positive impacts on society and the digital economy. By weeding out predatory practices, it creates space to boost the constructive segments of online gaming. According to the government, the main anticipated benefits are: 

• Boost to the Creative Economy: With clear rules and support for game development, India’s position as a hub for digital creativity and gaming innovation will be strengthened. Encouraging e-sports and safe online games can spur growth in the domestic gaming industry, leading to more exports, job creation, and tech innovation.  

• Empowering Youth and Skill Development: By promoting e-sports and skill-based games, the law opens up new opportunities for young people to engage in safe and constructive digital activities.   

• A Safer Digital Environment for Families: With the ban on deceptive money gaming platforms, families will be protected from predatory apps that lure users with false promises of easy money. This is expected to reduce incidents of addiction, indebtedness, and related social distress.  

• Strengthening India’s Global Leadership in Tech Policy: By implementing a forward-looking regulatory framework, India positions itself as a global leader in responsible online gaming governance.  

Complementary Measures and Legal Framework 

 Over the past few years, authorities have taken steps under various laws to curb online gambling, fraud, and cybercrimes. Some key measures already in place include: 

• IT Rules and Website Blocking: The Information Technology Act, 2000 provides powers (under Section 69A) to block access to illegal websites. The IT Intermediary Guidelines and Digital Media Ethics Code Rules, 2021,  amended in April 2023, introduced specific norms for online gaming. Platforms offering real-money games were required to register with self-regulatory bodies (SRBs) which would verify if a game is permissible or not. Using these powers, the government reports that between 2022 and June 2025, 1,524 betting and gambling websites/apps were blocked for being unlawful. 

• New Penal Code Provisions: The Bharatiya Nyaya Sanhita, 2023 which will replace the Indian Penal Code explicitly penalizes illegal betting and gambling. Section 112 of BNS, 2023 prescribes punishment for unauthorized betting/gambling offenders can face 1 to 7 years imprisonment and fines. This gives teeth to law enforcement against gambling offenses, even aside from the Online Gaming Act. 

• GST and Offshore Platforms: Under the Integrated Goods and Services Tax (IGST) Act, 2017, measures were added to regulate online gaming from a taxation perspective. Illegal or offshore gaming platforms are required to register under a simplified GST scheme. The Directorate General of GST Intelligence (DGGI) can direct internet service providers to block access to unregistered or non-compliant gaming sites.  

• Consumer Protection from False Ads: The Consumer Protection Act, 2019 prohibits misleading advertisements and “surrogate” ads and indirect ads for harmful products. The Central Consumer Protection Authority (CCPA) has powers to investigate and penalize violators. It has even issued advisories warning celebrities and influencers against endorsing online betting platforms, recognizing that such promotions mislead consumers.  

• Government Advisories: Ministries have periodically issued public advisories regarding online gaming risks. The Ministry of Information & Broadcasting in 2022, 2023, and 2024 warned media platforms, advertisers, and social media influencers not to publish or broadcast advertisements for online betting games, as these are illegal and harmful. Similarly, the Ministry of Education has circulated guidelines to schools and parents about safe online gaming habits for children, aiming to educate on the dangers of online gambling and excessive gaming. 

• Cybercrime Reporting and Helpline: The government operates a National Cyber Crime Reporting Portal where citizens can report cyber offenses including online financial frauds. This portal has a dedicated category for fraud related to online gaming or gambling. There is also a toll-free helpline (1930) for immediate assistance in reporting and blocking fraudulent transactions. 

Conclusion 

The enactment of the Promotion and Regulation of Online Gaming Act, 2025 marks a decisive step in India’s digital policy journey. It squarely acknowledges the grave dangers posed by unregulated online betting and gambling, and responds with firm measures to protect individuals and families from exploitation. At the same time, it deftly carves out room for innovation and growth in areas like e-sports and educational gaming, which have much to offer society. By balancing technological innovation with social responsibility, the law sets the tone for a safer and healthier digital future. It also solidifies India’s standing as a nation that can lead by example in crafting forward-thinking digital regulations demonstrating that it is possible to embrace the digital revolution while ensuring technology serves society’s best interests, not its harms.