GS 2 – Governance
The Online Gaming Bill 2025, officially titled the Promotion and Regulation of Online Gaming Bill, was approved by the Indian Cabinet and tabled in Parliament on August 20, 2025. This legislation aims to overhaul India’s online gaming landscape by promoting e-sports and regulating real-money gaming.
Features of the Online Gaming Bill 2025
- E-sports Promotion
The bill officially recognizes e-sports as a legitimate form of competitive gaming. It proposes the establishment of a National E-sports Authority to regulate, promote, and oversee the industry, ensuring its growth and integrity.
- Regulation of Real-Money Games
The legislation introduces stringent measures against online games involving monetary stakes, commonly referred to as “real-money games.” It prohibits the offering or promotion of such games, aiming to curb addiction and financial harm.
- Penalties for Violations
Individuals and entities found violating the provisions of the bill may face penalties, including imprisonment for up to three years and fines. These measures are intended to deter illegal gaming activities and ensure compliance with the new regulations.
- Distinction Between Game Types
The bill clearly differentiates between various types of online games:
- E-sports: Competitive gaming recognized and regulated under the bill.
- Online Social Games: Games played over the internet that do not involve monetary stakes.
- Online Money Games: Games involving monetary transactions, which are subject to strict regulations and potential prohibition.
- Self-Regulatory Bodies (SRBs)
The bill encourages the formation of Self-Regulatory Bodies (SRBs) to oversee online gaming platforms. These SRBs will be responsible for ensuring compliance with the regulations, promoting ethical gaming practices, and addressing user grievances.
Industry Impact
The introduction of the bill has had immediate effects on the gaming industry. Shares of companies involved in real-money gaming, such as Nazara Technologies, experienced significant declines following the announcement of the bill. Industry experts express concerns that the ban on real-money games may drive users towards illegal and unregulated platforms, potentially exacerbating the issues the legislation aims to address.