New legislation aims to curb addictive real-money gaming while promoting e-sports under unified national oversight.
Bill Aims to Regulate Gaming & Crackdown on Real‑Money Platforms
- Cabinet Approval: The Promotion and Regulation of Online Gaming Bill, 2025 received Cabinet approval this week and is slated for introduction in the Lok Sabha today.
- Purpose: To ban online games involving monetary stakes and regulate the burgeoning e-sports sector under one national framework.
Key Provisions of the Bill
- Ban on Money-Based Games: You cannot offer, advertise, or facilitate real-money gaming—including fantasy sports where users deposit money for a chance to win.
- Penalties: Offenders could face up to three years in prison and a fine of ₹1 crore, with lesser penalties for promoters and advertisers.
- E‑Sports Promotion: The bill includes the formation of a National e-Sports Authority to regulate, support, and promote competitive gaming.
Concerns from Industry
- Industry bodies warn of ₹20,000 crore in annual tax revenue losses and potential user migration to unregulated offshore platforms.
- Critics argue the bill is too broad, failing to differentiate between skill-based and betting games.
- The unified regulation aims to close gaps in fragmented state rules and safeguard users.
Why It Matters
- User Safety: Addressing addiction, financial loss, and mental health risks tied to compulsive gaming is a key goal.
- Economic Impact: Balancing regulation with support for e-sports and gaming innovation is essential to the digital economy.
- Legal Clarity: Establishes a central authority and licensing regime, replacing fragmented state-level rules.
What’s Next?
- Parliamentary Stage: The bill will be introduced today and likely referred to a committee for detailed review.
- Industry Dialogue: Gaming stakeholders hope for amendments that safeguard legitimate businesses and jobs.
- Public Debate: The proposals are expected to spark discussions on regulation, addiction, and digital growth.
The introduction of the Online Gaming Regulation Bill marks a significant step in balancing user protection with industry growth. As the bill moves through Parliament, stakeholders across the gaming ecosystem eagerly await a clear and fair framework that addresses concerns around addiction and fraud, while fostering innovation in India’s rapidly expanding digital gaming space.
