Rajya Sabha Clears Online Gaming Bill: Push for E-Sports, Crackdown on Gambling
In a major policy step towards ensuring responsible digital engagement, Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, with the Rajya Sabha giving its nod on August 21, a day after the Lok Sabha cleared it.
The legislation, hailed as a forward looking digital policy measure, seeks to balance innovation in India’s gaming sector with strong consumer protection, by encouraging e-sports and social gaming while imposing a complete prohibition on exploitative online money games.
The Bill is built on two clear objectives: to promote and regulate the legitimate and beneficial aspects of online gaming, and to protect individuals, especially youth and vulnerable groups, from the harmful consequences of online money gaming.
Moving the Bill, Electronics and IT Minister Ashwini Vaishnaw called online money gaming a “public health menace”, pointing out that around 45 crore users collectively lose nearly Rs. 20,000 crore annually on such platforms.
The law is divided into six chapters, each addressing a different aspect of regulation, prohibition, and enforcement.
Chapter I (Preliminary) lays down the foundation by defining the scope and applicability of the Act, which extends to the entire country and covers online money gaming services offered within India or from outside its territory. It clearly delineates terms such as ‘e-sport’, ‘online social game’, and ‘online money game’.
An e-sport is recognised as an organised competitive event governed by pre-defined rules, involving physical and mental skill, and duly recognised under the National Sports Governance Act, 2025. Online social games are defined as games intended for recreation or education, which do not involve stakes or winnings in monetary form, although they may charge subscription or access fees. In contrast, online money games are any games, whether skill-based, chance-based, or a mix of both, played by paying money or other stakes with the expectation of monetary or material gains.
Chapter II (Development and Recognition) focuses on structured promotion of the e-sports and social gaming ecosystem.
It mandates the Central Government to take proactive steps to recognise and register e-sports and social games, ensuring their legitimate place within India’s sports and digital economy. Measures include forming guidelines for e-sports events, setting up training academies, research centres, and introducing incentive schemes to foster innovation. It also provides for public awareness campaigns, creation of safe content platforms, and coordination with State Governments and institutions to integrate e-sports within larger sporting and educational policies.
The Bill’s strict prohibition framework is matched by its regulatory mechanism under Chapter IV (Authority on Online Gaming).
This chapter empowers the Central Government to constitute an Online Gaming Authority, or designate an existing body, to oversee compliance and enforcement. The Authority will have wide-ranging powers, including determining whether a particular game qualifies as an online money game, registering and categorising games, issuing guidelines and codes of practice, and handling complaints related to user safety.
It will also have the authority to act on complaints prejudicial to user interest and ensure that gaming platforms comply with directions from the Central Government.
The enforcement backbone of the law is provided under Chapter V (Offences and Penalties), which prescribes stringent punishments for violations.
Offering or facilitating online money gaming services is punishable with imprisonment up to three years or a fine up to Rs. 1 crore, or both.
Similar penalties apply to financial institutions that process transactions related to banned games.
Advertising such games is a separate offence, attracting imprisonment up to two years and fines up to Rs. 50 lakh.
The law goes further by introducing enhanced penalties for repeat offenders, up to five years of imprisonment and fines extending to Rs. 2 crore for subsequent violations.
Corporate liability provisions ensure that key managerial personnel are held responsible for offences committed by companies, while also providing safeguards for independent or non-executive directors. In addition, failure to comply with directions of the Authority can attract monetary penalties up to Rs. 10 lakh and suspension or cancellation of registration.
Beyond penalties, the Act strengthens enforcement by declaring offences under key sections as cognizable and non-bailable.
The law also empowers the Central Government to block access to information or platforms related to online money gaming under the provisions of the Information Technology Act.
Structure of the Bill: Chapters and Key Provisions
The Bill opens with Chapter I – Preliminary, which sets out the short title, extent and commencement, and provides precise definitions of terms such as e-sport, online social game, online money game, and advertisement. This chapter establishes the scope and applicability of the law to services operating both within and outside India.
Chapter II – Development and Recognition details the steps the Central Government must take to recognise and promote e-sports as a legitimate competitive sport and to facilitate the growth of online social games for educational and recreational purposes. It includes provisions for guidelines, training academies, research centres, and coordination with States to build infrastructure and awareness.
Chapter III – Prohibition lays down the complete ban on offering, operating, or facilitating any online money game, as well as prohibiting advertisements and financial transactions associated with such games. This chapter targets both direct participation and ancillary activities such as promotions and payment processing.
Chapter IV – Authority on Online Gaming empowers the Central Government to establish an Authority with powers to register, categorise, and oversee online games. It grants the Authority the mandate to handle complaints, determine whether a game is an online money game, and issue guidelines or codes of practice for compliance.
Chapter V – Offences and Penalties provides the enforcement backbone by prescribing strict punishments, including imprisonment and heavy fines, for violations. It also introduces enhanced penalties for repeat offences and makes offences cognizable and non-bailable, ensuring serious deterrence against illegal operations.
Chapter VI – Miscellaneous contains enabling provisions such as compliance directions from the Central Government, blocking of offending platforms, investigative powers including search and seizure, rule-making authority and mechanisms to resolve difficulties in implementation.