The central government has taken a major step to regulate the online gaming sector in India. It has imposed a complete ban on all types of online money games and simultaneously enacted the “Promotion and Regulation of Online Gaming Act, 2025.” The law aims to make the online gaming industry safer, more transparent, and responsible.
No Money Games Permitted
The government has clarified that no online game involving money will be permitted in the country going forward. This includes a prohibition on promotion, operation, and payment systems associated with such games. In other words, any platform, whether skill-based or chance-based, linked to monetary stakes will now be considered illegal to operate or promote.
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Stringent Penalties for Violations
The law prescribes stringent penalties for violations. Individuals or companies found involved in transactions related to online money games can face a maximum of three years in prison, a fine of up to ₹1 crore, or both. Repeat offenders may face stricter penalties, including 3–5 years of imprisonment and fines ranging from ₹1–2 crore. Advertising such games is also punishable, with first-time offenders facing up to two years in prison or a ₹50 lakh fine, and repeat violations carrying 2–3 years of imprisonment and fines between ₹50 lakh and ₹1 crore.
The government has further stated that, if necessary, such platforms can be blocked using powers under the Information Technology Act, 2000.
Boost for Non-Monetary Gaming
At the same time, the new law promotes non-monetary games, e-sports, and online social games. These games involve no financial transactions and are intended purely for entertainment or skill development. The objective is to ensure a positive and secure growth trajectory for the gaming industry.
Online Gaming Authority Established
Under the law, a national authority called the “Online Gaming Authority of India” will be established. This authority will oversee the entire online gaming sector, determine which games are legitimate and which qualify as money games, register games, issue regulations and a code of practice, and address user complaints.
The government has said that the law will provide several benefits to users. It is expected to reduce online fraud and scams, prevent addiction to money games, ensure access to safe and trustworthy gaming platforms, and provide quick resolution of complaints.
Alongside the enactment, the government released the draft rules—“Promotion and Regulation of Online Gaming Rules, 2025”—on October 2, 2025, for public consultation. Suggestions were invited from gaming companies, experts, and the general public to make the rules more practical and effective.
Government Commitment to Safe Gaming
The government also informed the Lok Sabha that it is fully committed to creating a responsible and secure online gaming sector. In a written response, Minister of State for Information & Broadcasting and Parliamentary Affairs, Dr. L. Murugan, said that the measure is crucial for safeguarding user interests and ensuring the sector’s safe development.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
