Authored By: Vangavolu.Sai Sruthi
KLUniversity,Vaddeswaram
ABSTRACT
The Promotion and Regulation of Online Gaming Act, 2025 represents a transformative step in India’s approach to digital governance and public safety. Enacted to address the rising concerns over online money gaming, addiction, and financial exploitation, the law provides a structured framework to distinguish between recreational, skill-based games and prohibited gambling-like activities. It was passed by Parliament on 21st Aug 2025 and came into enforcement on 1st October 2025, it comprising six chapters and twenty sections designed to regulate, promote, and safeguard the online gaming ecosystem.
The Act establishes the Online Gaming Authority of India (OGAI) as the primary body to oversee the registration, monitoring, and regulation of online gaming activities across the nation. It explicitly bans real-money and betting-based games while encouraging e-sports and social gaming that contribute to education, creativity, and skill development. Through clear classification, strict penalties and enforcement mechanisms, the legislation seeks to eliminate money gaming practices to reduce social and financial harm.
By promoting innovation alongside accountability, the Act reinforces India’s commitment to creating a safe, transparent, and responsible digital gaming environment. It also positions the country as a global leader in balancing technological progress with ethical governance. The long-term effectiveness of this legislation, however, will depend on its enforcement, periodic review, and adaptability to evolving digital trends such as artificial intelligence, virtual reality, and blockchain-based gaming.
SHAPING THE FUTURE OF E-GAMING IN INDIA: UNDERSTANDING THE ONLINE GAMING ACT, 2025
Introduction:
Recently, a 16-year-old boy spent ₹36 lakhs of his mother’s money on online games, and between 2014 and 2024, 47 suicides were linked to online money gaming[1]. Many individuals, both young and old, have fallen prey to severe financial losses and mental distress due to online gaming addiction. To overcome such situations, it is essential for the government to take strict action against online money games.
The Promotion and Regulation of Online Gaming Act, 2025 was passed by the Parliament on 21st August 2025 and came into enforcement on 1st October 2025. This Act contains 20 sections and six chapters. It represents the first serious attempt to regulate the online gaming domain in India.
The main objective of enacting this law is to encourage online games and e-sports while curbing online money gaming services such as gambling and betting. As the online gaming market grows rapidly, there has been a parallel rise in online money games, which pose serious risks to individuals and families, including financial losses. According to this Act, participating in or offering any such online money games is an offence.
It is highly necessary to enact laws to regulate and prohibit harmful online games. Union Minister for Electronics and Information Technology, Shri Ashwini Vaishnaw, stated that, according to estimates, 45 crore people have been negatively affected by online money games, facing losses of more than ₹20,000 crores[2]. The government has acted to close these gaps and protect citizens. The World Health Organization (WHO) classifies gaming disorder as a health condition where individuals lose control over gaming, neglect daily activities, and may suffer harmful consequences[3]. Many online games create an illusion of easy money and ultimately lead to addiction.
According to Limelight Networks Inc. (2021), Indian gamers spend more than 8 hours and 36 minutes per week playing online games. Most of these platforms are accessed by younger users—60% of India’s online gamers are under 25 years of age. The KPMG Media and Entertainment Report noted that the gaming user base surpassed 365 million in March 2020.[4] Several surveys also reveal that teenagers form the largest segment of gamers, and such addiction negatively impacts their studies and career prospects.
Background:
The Promotion and Regulation of Online Gaming Act, 2025, is a recent legislation. Before this, India relied on the Public Gambling Act of 1867, a colonial law that prohibited public gambling activities. However, the 1867 Act had a very limited scope and did not address the complexities of modern online gaming platforms.
The Promotion and Regulation of Online Gaming Act, 2025, is a central legislation that is binding across all states. While “betting and gambling” are subjects under the State List of the Indian Constitution, the central government enacted this law to establish uniformity. Several states, such as Maharashtra[5], Sikkim[6], Tamil Nadu[7], and Nagaland[8], already have their own state-specific laws regulating online gaming.
The government invited public feedback on the draft of the Promotion and Regulation of Online Gaming Bill before its enactment. The purpose of this Act is to promote e-sports and skill-based games while prohibiting harmful money games and misleading advertisements. On the other hand, the Act also recognizes the online gaming sector as one of the most dynamic, innovative, and technology-driven industries. It aims to encourage safe, educational, and organized online gaming activities.
Types of Games Covered Under the Online Gaming Act, 2025
The main objective of this Act is to prohibit online money games that falsely promise financial rewards and promote gambling-like behaviour. Examples include Rummy, Spin-to-Win, Eaze Games, and WinZO. The Act allows and promotes skill-based games played for education, recreation, or entertainment that do not involve monetary stakes .The Promotion and Regulation of Online Gaming Act, 2025, covers three primary categories of online gaming:
- E-Sports
E-sports are online games based on skill, strategy, and knowledge. They are usually multiplayer video games played professionally, either individually or as teams, often with monetary prizes. These games are permitted and legally protected under the Promotion and Regulation of Online Gaming Act, 2025, and the National Sports Governance Act, 2025.Examples include League of Legends, Rocket League, and StarCraft II.
The Ministry of Youth Affairs and Sports is responsible for promoting e-sports in India.
- Online Social Games
Online social games are played for entertainment, education, and skill development and do not involve any form of betting or monetary rewards. Examples include quizzes, puzzles, and treasure hunts. These games are permitted under the Promotion and Regulation of Online Gaming Act, 2025, as they pose no adverse impact on users.
- Online Money Games
Online money games require players to pay an entry fee or stake to participate, with the possibility of winning or losing real money. Such games have serious consequences, including financial losses, addiction, and suicidal tendencies. They are strictly prohibited under the Promotion and Regulation of Online Gaming Act, 2025.
The Ministry of Electronics and Information Technology stated that such games contribute significantly to financial distress, depression, and suicides.
Overview of the Promotion and Regulation of Online Gaming Act, 2025
Chapter I: Preliminary This chapter clearly explains the territorial jurisdiction and scope of the Act, As mentioned this act extends to the entire territory of India.
It defines key terms such as Authority, Advertisement, E-sport, and Online Money Game.
Chapter II: Promotion and Recognition Sections 3 and 4 outline the responsibilities of the Ministry of Youth Affairs and Sports, as well as the Online Gaming Authority of India (OGAI), for the registration and recognition of online games and e-sports.
This chapter emphasizes the promotion of non-monetary online games that are skill-based, educational, and recreational.
Chapter III: Prohibition This chapter aims and imposes a complete ban on real-money games (RMGs) or any online game involving financial stakes. It aims to eliminate online gambling and betting activities that lead to social and financial harm.
Chapter IV: Authority on Online Gaming This section establishes the Online Gaming Authority of India (OGAI) as the principal regulatory body. It has the power to receive complaints Suo motu or through applications, and the Central Government appoints the Chairperson and members of the Authority. Section 8(2) outlines the composition, salaries, allowances, powers, and functions of the Authority. OGAI was empowered and established on responsibility to supervise, register, and regulate online games across the country.
Chapter V: Offences and Penalties Sections 9 to 12 specify penalties for violations.
The Act prescribes both fines and imprisonment for non-compliance, with stricter penalties for repeat offenders.
Chapter VI: Miscellaneous Sections 13 to 20 deal with miscellaneous provisions.
If any ambiguity or difficulty arises in implementing the Act, the Central Government may issue clarifications or amendments through official notifications in the Gazette of India.
Penalties Under the PROG Act, 2025
The Act imposes strict and tangible penalties for violations, including both monetary fines and imprisonment:
- Offering prohibited money games: Up to 3 years’ imprisonment, or a fine of ₹1 crore, or both.
- Misleading advertisements: Up to 2 years’ imprisonment, or a fine of ₹50 lakhs, or both.
- Unauthorized transactions: Up to 3–4 years’ imprisonment, or a fine of ₹1 crore, or both.
- Repeat offenders: Up to 3–5 years’ imprisonment, or a fine between ₹1–2 crores, or both.
These stringent punishments reflect the seriousness with which the government views violations under the Act.
Regulatory Authorities Under the PROG Act, 2025
The Online Gaming Authority of India (OGAI) serves as the central regulatory and quasi-judicial body under the Act. It is headquartered in New Delhi. The primary functions of OGAI include:
- Registration and classification of online games
- Banning real-money games
- Supervising licensed operations
- Promoting online games and e-sports
- Monitoring misleading advertisements
- Issuing or revoking certificates of registration
- Imposing penalties and adjudicating disputes
OGAI holds similar and equal powers as to a civil court, including the authority to issue summons and enforce penalties.
Comparison with Other Countries:
United Kingdom-Online money games were legal but strictly regulated under UK laws. The legislation places strong emphasis on advertising standards, ensuring that promotional content does not target minors. The primary objective of UK gaming laws is consumer protection and player safety.
United States –Even though there is no central ban on online gaming in the US. Regulations vary by state. For example, New Jersey, Michigan, and Pennsylvania allow online betting and fantasy sports. Utah and Hawaii have banned all forms of online gambling. The Unlawful Internet Gambling Enforcement Act, 2006, and the Federal Wire Act, 1961, govern online gaming activities in the country.
China-China has imposed a complete ban on real-money games, both in the online and offline modes of gaming. No licenses or registrations are permitted, except for state lotteries. Strict penalties apply for violations.
Macau (SAR)-Online gambling is illegal in Macau. In 2024, Macau enacted a law criminalizing all forms of unauthorized online gaming.
Europe-Many European countries permit online gaming but under strong regulatory frameworks, mandating age verification, addiction prevention, and anti-money laundering mechanisms.
For example: France allows poker but prohibits online casinos. Other European nations maintain a mix of partial bans and strict licensing systems.
Other Nations-Countries like Japan, South Africa, Kenya, Australia, New Zealand, Brazil, Argentina, and Colombia allow online gaming but under strict licensing and compliance rules.
South Korea has completely banned online gambling platforms.
Possible Updates to the Online Gaming Act:
Although the Online Gaming Act, 2025, is comprehensive and clear, several improvements can be considered:
- Age Verification: Mandatory verification for all gaming platforms, including non-monetary games, as some may contain violent or age-inappropriate content.
- Time Restrictions and Risk Warnings: Platforms should be required to set gaming time limits and display warnings to prevent addiction.
- Periodic Review: The Act should be reviewed and updated every 3–4 years to align with new technologies such as virtual reality, blockchain-based gaming, and AI-driven gaming models.
- Player Protection Mechanisms: Include provisions for counselling and rehabilitation programs for individuals affected by gaming addiction.
- Data Privacy and Cybersecurity: compliance with Digital Personal Data Protection Act, 2023, to mandate data localization for user safety.
Conclusion:
The Promotion and Regulation of Online Gaming Act, 2025, represents a landmark step in India’s digital and legislative history. It is the first serious attempt to curb online money games while encouraging e-sports and social gaming. The Act establishes a strong regulatory framework through the Online Gaming Authority of India (OGAI), enforces stringent penalties for non-compliance, and promotes a safe, ethical, and innovative gaming environment.
While several other countries had already developed frameworks to control gaming-related issues, India’s proactive approach reflects its commitment to balancing digital innovation with social responsibility. The main objective of this Act is to eliminate monetary elements in gaming, protect vulnerable users, and create a secure, skill-based gaming ecosystem.
By ensuring proper implementation and periodic updates, the Act can pave the way for a healthier, transparent, and globally competitive e-gaming industry in India.
REFERENCE(S):
1.https://prsindia.org/files/bills_acts/bills_parliament/2025/Bill_TextOnline_Gaming_Bill_2025.pdf
2.https://www.who.int/news-room/questions-and-answers/item/addictive-behaviours-gaming-disorder
3.https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/aug/doc2025821618101.pdf
5.https://law.asia/online-gaming-act-
[1] https://law.asia/online-gaming-act
[2] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/aug/doc2025821618101.pdf
[3]https://www.who.int/news-room/questions-and-answers/item/addictive-behaviours-gaming-disorder
[4]https://igpp.in/publications/a-digital-safety-initiative.php
[5] Bombay Prevention of Gambling Act, 1887
[6] Sikkim Online Gaming (Regulation) Act, 2008
[7] Tamil Nadu Gaming Act, 1930 & Tamil Nadu City Police Gaming Rules, 1949
[8] Nagaland Prohibition of Gaming and Promotion and Regulation of Online Games of Skill Rules, 2016
