‘The Promotion and Regulation of Online Gaming Bill, 2025’ is a balancing act between safeguarding the gamers while restricting gaming companies to go berserk
It was long overdue, and finally the Government has woken up to the need for regulating online gaming sites, something many, especially youth, are addicted to and have lost lakhs of rupees to these gaming sites. Reportedly, many youth committed suicide after losing large amounts of money on these portals, one boy even self-immolated after losing a big amount. To curb this menace the Lok Sabha has passed ‘The Promotion and Regulation of Online Gaming Bill, 2025’, which defines India’s approach to its fast-growing digital gaming industry. Union Minister for Electronics and Information Technology Ashwini Vaishnaw, presented the bill in the Lok Sabha which was cleared without debate. The bill aims to strike a delicate balance — encouraging e-sports, casual gaming, and educational platforms on one hand, while banning real-money gaming and online betting on the other. The online gaming sector in India has grown rapidly, thanks to cheap data, smartphone availability, and the popularity of sports leagues. The industry is projected to be worth $3.6 billion by 2029. However, this growth has come with troubling side effects. Concerns have also been raised about addiction, financial distress, money laundering, tax evasion, and even the use of gaming platforms for financing terrorist activities. Against this backdrop, the bill seeks to provide a legal and regulatory framework that safeguards consumers while allowing e-sports and social gaming to flourish. The key provisions of the Bill include banning real-money gaming. Offering or facilitating online money gaming will be punishable by up to three years in prison and/or a fine of Rs 1 crore. Besides, now there would be advertising restrictions and financial controls in place.
Though a step in the right direction, Online Gaming Bill is by no means foolproof and carries several lacunae that raise concerns about its effectiveness. The legislation imposes a blanket ban on real-money gaming without drawing a clear line between games of skill and games of chance. Moreover, while the bill seeks to address addiction, it falls short of introducing responsible gaming frameworks such as age checks, spending limits, or rehabilitation mechanisms, opting instead for prohibition. Additionally, the bill does not clearly define the role or powers of a regulator for e-sports and casual gaming, leaving uncertainty over enforcement, nor does it account for emerging technologies like blockchain, NFTs, and metaverse-based gaming. In its current form, the bill, though well-intentioned, risks being both vague and incomplete, potentially creating economic disruption, and enforcement challenges. A more effective way forward would be for the government to adopt a balanced regulatory framework rather than a sweeping ban. The law should clearly distinguish between games of skill and games of chance, as courts have often done, and create licensing norms for responsible operators. A strong, independent regulator with defined powers could oversee compliance, curb illegal platforms, and ensure coordination between the Centre and states and deal with gaming platforms effectively.
