Introduction
Online gaming has emerged as one of the fastest-growing industries in India. With cheap
internet, smartphones in every hand, and easy digital payment systems, millions of people now spend hours every day playing games online—sometimes just for fun, and sometimes to make quick money. But this rapid rise has also raised concerns: addiction, gambling, financial frauds, and the safety of minors. On August 21, 2025, the Government of India passed the Promotion and Regulation of Online Gaming Act,2025, as a measure to tackle a number of issues. The Act prohibits online money games while promoting and regulating certain other categories of online games.
Historical Background of Gaming Law in India
Gambling in India is not new—it has a long history. References appear in the epic Mahabharata, where gambling was shown as both a popular pastime and a source of destruction. Ancient texts, including the Vedas, strongly condemned gambling for its harmful impact on honesty, wealth, and family life. Yet thinkers like Kautilya (Chanakya) and Yajnavalkya recognized that since gambling was widespread, it should be regulated by the State.
During the colonial era, British laws shaped much of India’s gambling framework. The Betting Act, 1845 in England inspired the Public Gambling Act, 1867 in India, which imposed strict restrictions on public gambling but made exceptions for horse racing, lotteries, and skill-based games.
After independence, the Constitution gave individual states the authority to legislate on
gambling (Seventh Schedule, Entries 34 & 62). This is why some states like Goa, Sikkim, and Daman have legalized casinos, while most of the country still restricts gambling. Interestingly, cricket betting remains mostly illegal, even though it’s hugely popular.
Objectives of the Act
The preamble of the Act reflects a dual purpose:
The act prohibits all forms of online money games, and
To promote and regulate e-sports and legitimate skill-based games.
The law aims to create a safe and responsible gaming environment. E-sports are defined as
online games recognized under the National Sports Governance Act, 2025, where outcomes
depend solely on skill—like physical dexterity, mental agility, and strategic thinking—rather than chance.
National e-Sports Authority
To implement its provisions, the Act creates a new body—the National e-Sports Authority. Its role is to decide which games qualify as money games, issue licenses to platforms, classify games, and ensure compliance. In short, it acts as the regulator for India’s growing online gaming sector.
Safeguarding Users
The Act also focuses on protecting users, especially minors. It requires gaming platforms to
have:
Age verification systems
Responsible gaming features (deposit and time limits)
A ban on misleading advertisements
The intention is clear—protect young people and prevent citizens from falling into financial traps or developing gaming addictions. The World Health Organization (WHO) had already
acknowledged gaming disorders as a legitimate condition, which emphasizes the importance of this step.
Offences and Penalties
The law provides strict punishments for violations:
Offering online money games is punishable by up to three years in prison, a fine of one crore rupees or both.
Those who advertise online money games face a punishment of up to two years of
imprisonment, a fine of up to rupees fifty lakh, or both.
Facilitating financial transactions for banned games → up to 3 years imprisonment, a fine of ₹1 crore, or both.
The fact that these offences are cognizable and non-bailable is important, providing law
enforcement with considerable power.
Constitutional Dimensions
The Act is already facing constitutional challenges:
Federal Overreach: Since gambling is a state subject, critics argue that Parliament may have overstepped its powers. Certain states like Tamil Nadu, Telangana, and Andhra Pradesh have already enacted bans.
Fundamental Rights:
Article 19(1)(g): The right to practice any profession. The Supreme Court in Dr. K.R.
Lakshmanan vs. State of Tamil Nadu (1996) distinguished skill games from gambling. By
banning all online money games, the Act blurs this line, which many see as arbitrary.
Article 14: Right to equality. The Act promotes e-sports but bans skill-based online money
games, creating an unreasonable classification.
Article 21: Right to personal liberty. Provisions allowing warrantless searches and arrests in
“digital spaces” are being challenged for violating due process.
How Is Online Gaming Currently Regulated?
India already has several legal frameworks that touch upon online gaming:
IT Act, 2000 & Rules: Intermediaries must prevent unlawful content. Section 69A allows the government to block illegal websites (1,524 betting sites/apps blocked between 2022–2025). Bharatiya Nyaya Sanhita, 2023: Sections 111 & 112 penalize unlawful economic activities and gambling.
GST Act, 2017: Offshore and illegal gaming platforms face regulation under GST.
Consumer Protection Act, 2019: Prohibits misleading ads, with strong powers for enforcement.
Ministry Advisories: The MIB has repeatedly warned advertisers and influencers against
promoting online betting.
Comparative Perspectives
China: Extremely strict—minors can only play three hours per week.USA: The Unlawful Internet Gambling Act does not ban gambling but prohibits financial
transactions where state law does not allow it.
Singapore: Uses a “sandbox” approach, balancing innovation with consumer safeguards.
Other Countries: Japan and South Africa are still exploring frameworks for regulating e-sports.
Conclusion
The new Promotion and Regulation of Online Gaming Act, 2025 is a watershed moment for
India’s Gaming laws. The law seems to balance two goals: stopping online money games and fostering the growth of e-sports based on skills. Its focus on licensing, transparency, and consumer safeguards shows the State’s intent to regulate responsibly.
Yet, challenges remain. Federal tensions, enforcement in the digital space, and fears of
over-criminalization (which may discourage startups) cannot be ignored. Ultimately, the Act’s success will depend on effective enforcement, judicial clarity, and industry cooperation.
References
PRS Research; The Promotion and Regulation of Online Gaming Bill, 2025; Times of India;
Drishti IAS; Press Information Bureau, Government of India, Live law.
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