The Promotion and Regulation of Online Gaming Bill, 2025

Syllabus: GS2/Governance

Context

• The Lok Sabha has passed The Promotion and Regulation of Online Gaming Bill, 2025.
  • The Bill seeks to prohibit online money games, and promote and regulate certain other online games.

Major Provisions

• Online Money Game Definition: An online game that involves a user paying money or other stakes in expectation of receiving monetary or other enrichment.
  • This is irrespective of whether the game is based on skill, chance, or both.  
  • Also include credits, coins, and tokens equivalent or convertible to money. 
• Prohibition on online money games: The Bill prohibits offering or aiding online money games and related services.
  • It also prohibits advertising, and facilitating financial transactions for such games.  
• Blocking Games: It empowers the central government to block any information related to online money gaming services from public access.
• Promotion of e-sports and online social games:  E-sport is defined as an online game that: is played as part of multi-sports events,
  • is recognised under the National Sports Governance Act, 2025
  • has outcome determined solely by factors such as physical dexterity, mental agility, strategic thinking, or similar skills, 
  • and involves organised competitive events conducted in multiplayer format and governed by pre-defined rules.  
  • It must not involve placing of bets or other stakes, or expectation of any winning out of such stakes. 
• The central government may:
  • create a mechanism for registration of e-sports and online social games,
  • specify guidelines for conducting e-sports events, 
  • establish training academies for e-sports,
  • incentivise promotion of e-sport technology platforms, 
  • and support initiatives that increase public access to safe social gaming content.
• Authority on Online Gaming: The central government may constitute an Authority with powers to determine whether an online game qualifies as an online money game, and recognise, categorise, and register online games.  
• Search and arrest without warrant: The Bill empowers authorised officers to enter and search any place without a warrant.
  • Places include buildings, vehicles, electronic records, and virtual digital spaces (such as emails and social media).  
  • They may also arrest a suspect found during the search without a warrant.  
• Offences and penalties: Offering online money gaming services will be punishable with imprisonment for up to three years, a fine up to one crore rupees, or both.
  • Advertising online money games will be punishable with imprisonment up to two years, a fine up to Rs 50 lakh, or both.  
  • Facilitating financial transactions for such services will be punishable with imprisonment up to three years, a fine up to one crore rupees, or both.  
  • A repeat offence would attract enhanced penalties, including jail for 3-5 years and fine of up to ₹2 crore.

Need for the Bill

• Lack of Framework: The lack of a legal framework has hindered the sector’s structured development and the promotion of responsible gaming practices, requiring urgent policy intervention and support mechanisms.
• Major Concerns: The proliferation of online money games through mobile phones, computers and the internet, and offering monetary returns has led to serious social, financial, psychological and public health harms.

Significance 

• The bill will establish a uniform and national-level legal framework in the public interest. 
• The Bill will protect the country’s youth from predatory online Real Money Gaming apps which manipulate them through misleading monetary return promises. 
• The introduction of the Bill reflects the Government’s commitment to a safe, secure, and innovation-driven Digital India that boosts creativity, safeguards citizens, and strengthens national security.

Source: TH