The Indian Parliament has passed the Promotion and Regulation of Online Gaming Act, 2025, marking a significant shift in the online gaming landscape. The Act not only bans real-money games but also paves the way for e-sports and social gaming under a new regulatory framework.
Timelines
On 20 August 2025, the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025, banning money-based online games and promoting e-sports and social gaming.
On 21 August 2025, the Rajya Sabha cleared the Bill.
On 22 August 2025, the President granted assent, officially enacting it as the Promotion and Regulation of Online Gaming Act, 2025.
Key Provisions of the Act
- Complete
Ban on Real-Money Gaming
All games involving wager, betting, or monetary stakes—irrespective of whether they involve skill or chance—are strictly prohibited. - Harsh
Penalties for Violations
Offenders could face:- Up to 3 years imprisonment and/or fines up to ₹1 crore.
- Repeat offences may attract 3–5 years imprisonment and fines up to ₹2 crore.
- Ban
on Ads & Financial Transactions
Advertising such games or facilitating payments via banks/payment systems is forbidden. Violators may also be blocked under IT Act powers. - Emergence
of a Regulatory Authority
Establishes a National Online Gaming Commission (NOGC) to license platforms, oversee compliance, and promote safe gaming. - E-sports
and Social Gaming Encouraged
The law formally recognizes e-sports as a competitive discipline, enabling government support for training, research, and innovation. Casual and educational online games are also promoted under the new framework.
Immediate Industry Reactions
- Platform
Shutdowns & Disruptions
Major players such as Dream11, MPL, and Zupee halted real-money gaming operations immediately after passage of the bill. - Mass
Layoffs & Revenue Loss
Mobile Premier League (MPL) plans to lay off ~60% of its Indian staff as it pivots to free-to-play formats overseas. Estimates suggest the ban impacts an industry worth $3.6 billion by 2029. - Cricket’s
Sponsorship Shakeup
Fantasy gaming platforms served as key cricket sponsors. With the ban, Dream11’s sponsorship has ended, and BCCI is seeking new title sponsors—excluding real-money gaming and crypto firms. - Legal
Challenges in Motion
Several high courts have seen petitions challenging the Bill’s constitutionality. The government has asked the Supreme Court (hearing on September 8) to consolidate these cases. - Broadcasting
Momentum
PM Modi has described the law as a “major decision”, highlighting societal harm from addictive gambling and supporting the move as protective of youth and promoting healthy gaming.
Why It Matters
From a societal and economic standpoint:
| Benefit | Explanation |
| User Protection | Shields vulnerable individuals from addictive betting and financial harm. |
| Industry Clarity | A unified national framework replaces fragmented state regulations. |
| Growth of Legitimate Gaming | Focus shifts toward skill-based, socially constructive gaming—boosting India’s potential as a gaming hub. |
At the same time, the transition brings risks:
- Job Losses & Market Contraction in affected real-money gaming platforms.
- Commercial Disruption across sponsorship-heavy industries like sports and media.
- Legal Uncertainty, as judicial challenges continue.
