Last week, the Promotion and Regulation of Online Gaming Act, 2025 (‘Online Gaming Act, 2025') was made a law after it received assent of the President of India and published in the official gazette of India on August 22,2025.
The Online Gaming Act, 2025 prohibits online money games while promoting e-sports and social gaming for skill development, education, and entertainment.
This Q&A article aims to break down its key provisions, based on the Act's text to help stakeholders navigate the new landscape:
Q1: What is the Online Gaming Act?
The Online Gaming Act, 2025 is a comprehensive law aimed at prohibiting online money games/real money games (alleged to be gambling disguised as gaming) while promoting and regulating legitimate online gaming sectors like e-sports, educational games, and social gaming. It seeks to appoint a Gaming Authority, foster innovation, skill development, and safe digital entertainment, while curbing financial risks and addiction associated with money-based games. The Act applies across India and overrides conflicting state laws on online gaming. The Act also seeks to mitigate harms from money-based games, such as social, economic, psychological, and privacy issues.
Q2. Has the Online Gaming Act, 2025 been enforced in India?
Not yet. Though the Online Gaming Act, 2025 received the assent of the President of India and published in the official gazette of India on August 22,2025. However, its provisions will come into force only after the Central Government issues a notification under Section 1(3) of the said Act, specifying the date from which it will be implemented.
Q3. What is the extent of applicability of Online Gaming Act, 2025?
The Online Gaming Act, 2025 extends to the whole of India and also applies to online money gaming service offered within the territory of India or operated from outside the territory of India.
Thus, even if an online gaming platform is hosted or operated from outside India (e.g., a foreign website/app), the Act will apply if the service is accessible to users in India or targets Indian players.
Q4: What are the key definitions under the Online Gaming Act, 2025?
The Online Gaming Act, 2025 provides clear definitions to avoid ambiguity as:
- Online Game: Any game played on electronic or digital devices via the internet or other communication technologies.
- Online Money Game: Online games, irrespective of whether such game is based on skill, chance, or both, where users pay fees or deposit money expecting monetary or equivalent rewards (e.g., credits, tokens).
- E-Sport: Competitive online games played as part of multi-sports events or which involves in organized competitive events governed by predefined rules, recognized as sports, involving skills like strategy or dexterity. The same may include payment of registration/entry fees and may include performance-based prize money but excludes money games.
- Online Social Game: Non-monetary games for entertainment, recreation, or skill-building, accessible via subscriptions or one-time fees (not stakes).
- Other Stakes: Includes virtual items convertible to money.
- User: Any person accessing online games.
Q5: What activities are prohibited under the Online Gaming Act, 2025?
The Act imposes strict bans on eliminating gambling elements by providing that:
- No person can offer, aid, abet, or engage in online money games or online money gaming service or related services (Section 5).
- No person can advertise or directly or indirectly promote online money games or indulge in any activity promoting online money gaming in any media, including digital platforms (Section 6).
- No bank, financial institution, or any person facilitating financial transactions or authorization can process transactions or authorization of funds towards payment for any online money gaming service (Section 7).
Q6: What does the Online Gaming Act, 2025 aims to promote and how?
The Act aims to encourage growth in gaming as:
- E-Sports (Section 3): It is recognized as legitimate sports. The Central Government will issue guidelines for events, establish training academies, research centers, incentives, and awareness campaigns. Coordination will be done with States and federations to integrate into national sports policies.
- Online Social Games (Section 4): The same are promoted for recreation and education. It includes registration mechanisms, development platforms, safe content initiatives, and digital literacy programs. This could boost India's gaming industry, projected to grow in e-sports and edutainment sectors.
Q7: What is the regulatory framework and authority established by the Online Gaming Act, 2025?
The Act creates a centralized regulatory body as:
- The Central Government may constitute an "Authority on
Online Gaming" (Section 8) or designate an existing authority
or agency. It includes a Chairperson and Members, with powers to:
- Classify games (e.g., determine if a game is a money game).
- Register, recognise and categorize e-sports and social games.
- Issue directions, guidelines, and codes.
- Handle user complaints.
- Such other powers and functions as may be prescribed
- The Government can prescribe rules on the Authority's composition, procedures, and complaint mechanisms. This framework ensures uniform regulation, replacing patchy state-level approaches.
Q8: What are the penalties for violations under the Online Gaming Act, 2025?
Penalties are stringent to deter non-compliance, with cognizable and non-bailable offences for major violations:
- Offering Online Money Games (Section 5 Violation): Imprisonment up to 3 years, fine up to INR 1 crore (~USD 114,216)1 , or both. For repeat offences: 3-5 years imprisonment and INR 1(~USD 114,216)-2 (~USD 228,412) crore fine.
- Advertising Online Money Games (Section 6 Violation): Imprisonment up to 2 years, fine up to INR 50 lakh (~USD 57,103), or both. Repeat: 2-3 years and INR 50 lakh (~USD 57,103)-INR 1 crore (~USD 114,216)
- Facilitating Financial Transactions (Section 7 Violation): Same as Section 5—up to 3 years imprisonment, INR 1 crore (~USD 114,216) fine, or both; repeat offences escalate similarly.
- Non-Compliance with Authority Directions (Section 12): Penalty up to INR 10 lakh (~USD 11421), plus possible suspension or cancellation of registration.
- Offences by Companies (Section 11): Company and responsible officers (e.g., directors) liable, unless they prove lack of knowledge or due diligence. Independent directors or a non-executive director of the company exempt if not involved in actual decision making.
- Cognizance: Offences under Sections 5 and 7 are cognizable and non-bailable.
Q9: How does the Online Gaming Act, 2025 handle enforcement and complaints?
Enforcement is empowered through the Authority on Online Gaming, which can act on applications or suo motu (on its own). Complaints must be in writing or electronic, and no penalties for non-compliance are imposed without a hearing. The Act allows warrantless searches in some cases and warrantless arrest of any person who is reasonably suspected of having committed or about to commit any offence under the Act. Investigations will follow the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, which governs criminal procedure in India.
Q10: How does Online Gaming Act, 2025 impact online gaming companies?
Companies offering real money games (e.g., fantasy sports, poker) may face shutdowns or pivots to non-monetary models. E-sports and social gaming platforms may thrive with government support, but registration is mandatory. Financial institutions must halt related transactions, risking penalties. The ban could disrupt investments and lead to app removals.
Q11: What does this mean for users and gamers?
Users cannot legally participate in money-based games, reducing risks of addiction and losses but limiting options. E-sports enthusiasts benefit from formalized events and incentives, while social gamers gain safer, educational platforms. Non-compliance could expose users to indirect legal risks if platforms are penalized.
Q12: How does the Online Gaming Act, 2025 interact with other existing laws?
The Act operates in addition to laws like the Information Technology Act, 2000 (for blocking content), Consumer Protection Act, 2019 (for advertisements), and National Sports Governance Act, 2025 (for e-sports). It overrides inconsistencies with other laws and integrates with criminal procedures under the Bharatiya Nagarik Suraksha Sanhita, 2023. This creates a unified regime but may require harmonization with state-level gaming laws, potentially leading to legal challenges on federalism grounds.
Q13: Are there potential grounds for legal challenges to the Online Gaming Act, 2025?
Yes, challenges to Online Gaming Act, 2025 are likely to be made by online gaming companies alleging violation of Article 14 of the Constitution which provides equal treatment of law (e.g., exempting e-sports but banning other online money games) for lack of intelligible differentia that justifies a complete ban on online real money gaming while excluding other forms of wagering such as betting, lotteries, casinos in certain states and games with monetary stakes like horse racing. Further, it can be challenged alleging violation of Article 19 of the Constitution which deals with fundamental right to practice any profession, or to carry on any occupation, trade or business.
The obliteration of distinction between games of skill and games of chance within the real money gaming ecosystem supported by existing legal precedents, issues of the legislative competence considering ‘Sports' is a State subject (List II, Entry 33 of the Constitution), the lack of industry consultation, warrantless searches and arrests and stringent penalties, individual autonomy, doctrine of proportionality, doctrine of legislative expectation, rationale for prohibition over regulation and due procedural grounds etc. could be additional grounds for challenging the Online Gaming Act, 2025.
Q14: How can stakeholders comply with the Online Gaming Act, 2025?
Gaming firms/companies need to pivot to non-monetary models like e-sports or social games to qualify for registration and incentives, cease money-based operations, and monitor notifications.
Users should shift to registered e-sports or social platforms. Government needs to frame the Rules and establish the Authority on Online Gaming promptly to clarify classifications and guidelines.
It is expected that the stakeholders will stay updated via official notifications for implementation details.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
