New Delhi: The lives of millions of children and adults, trapped in the clutches of online money gaming, will now be saved from financial ruin and social distress. Modi 3.0 not only secured passage of the Online Gaming Bill 2025 from both Houses of Parliament but also ensured it received presidential assent from President Droupadi Murmu. With this, the Bill has now become an Act.
Prime Minister Narendra Modi, in a post on X, wrote, “This Bill, passed by both Houses of Parliament, highlights our commitment towards making India a hub for gaming, innovation and creativity. It will encourage e-sports and online social games. At the same time, it will save our society from the harmful effects of online money games.”
Union Electronics & Information Technology Minister Ashwini Vaishnaw stressed that the legislation adopts a balanced approach—promoting what is beneficial, while prohibiting what is harmful for India’s middle class and youth. The new law encourages e-sports and online social games while prohibiting harmful money gaming services, advertisements, and related financial transactions. It also criminalises online betting and gambling activities, including fantasy sports, poker, rummy, lotteries, and other money-based digital games, aimed at shielding vulnerable groups from predatory real money gaming apps that exploit users through false promises of quick returns and addictive gameplay.
According to the government, the prohibition of such activities is necessary to prevent addiction, financial losses, and extreme consequences such as suicides. Additionally, online money gaming platforms are often exploited for financial fraud, money laundering, terror financing, and covert messaging activities that undermine national security.
Senior cyber law expert Pawan Duggal described the Online Gaming Act 2025 as “a powerful and historic law in the digital era.” However, he cautioned that execution remains the biggest challenge. “We are not yet ready to implement it effectively. There is no option to regulate virtual networks or games operating directly from foreign countries. Geography has become history. That’s why the government must impose this law proactively and raise awareness among people,” he told The Sunday Guardian.
The Online Gaming Act 2025 lays down eight major provisions. First, e-sports have been recognised as a legitimate form of competitive sport in India, with the Ministry of Sports tasked with framing guidelines, creating training academies, research centres, and incentive schemes. Second, social and educational online games will be promoted through government recognition, registration, and platforms supporting safe, age-appropriate content aligned with Indian values. Third, a complete ban has been imposed on online money games, their advertising, and related financial transactions, with powers to block unlawful platforms under the Information Technology Act, 2000. Fourth, the law mandates the establishment of a national-level Online Gaming Authority to oversee regulation.
The fifth provision details strict penalties, including up to three years’ imprisonment and fines up to Rs 1 crore for offering or facilitating money games, and two years with fines up to Rs 50 lakh for advertising them. Repeat offenders may face harsher penalties, up to five years in prison and fines of Rs 2 crore. Sixth, corporate and institutional liability provisions ensure that companies and their officers can be held accountable, though independent directors uninvolved in decision-making are protected. Seventh, the government has empowered designated officers to investigate, search, seize, and arrest without warrant in certain cases, with provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, applicable to enforcement. Finally, the central government retains rule-making powers for promotion of e-sports, recognition of online games, and related regulation.
Online gaming is not a minor concern. According to government estimates, nearly 45 crore Indians are affected by online money games annually, with poorer households losing over Rs 20,000 crore directly each year. The National Crime Records Bureau reports that more than 600 suicides in the past five years have been directly linked to online gaming and betting addiction. The Online Gaming Act 2025, therefore, represents an attempt not just to regulate a growing industry but also to protect millions from financial devastation, addiction, and the darker uses of digital platforms.
