President Droupadi Murmu on Friday gave her assent to the Promotion and Regulation of Online Gaming Bill, 2025, a legislation that simultaneously recognises e-sports as a legitimate sporting activity while imposing a sweeping ban on money-based online gaming.
The Bill, passed by Parliament earlier this week, prohibits the offering, promotion or facilitation of online money games, regardless of whether they are based on skill, chance or a mix of both. Offenders face strict penalties, including imprisonment and heavy fines. However, no punishment has been prescribed for individual players.
Government officials emphasised that the primary objective of the law is to curb gambling-related addiction, financial ruin and the extreme consequences such as suicides that have been linked to online money gaming. “The harms of addiction, financial losses, and even extreme consequences such as suicides associated with online money gaming can be prevented by the prohibition of such activities,” sources said. Reports of money laundering and terror financing through such platforms also weighed heavily in the government’s decision.
The legislation seeks to differentiate between money-driven games and e-sports, with the latter placed under a dedicated framework to be developed by the Ministry of Youth Affairs and Sports. According to officials, this marks the first time that e-sports will receive full legal recognition in India.
Also read: Our voice carries weight, says President Murmu
Penalties under the law are severe: offering or facilitating money games can invite imprisonment of up to three years and/or a fine of Rs 1 crore; advertising such games could lead to two years in prison and/or a fine of Rs 50 lakh. Repeat offenders face enhanced punishments, including imprisonment up to five years and fines reaching Rs 2 crore. Key offences will be treated as cognisable and non-bailable.
The Central government has been empowered to authorise officers to investigate, search, and seize both physical and digital property linked to violations. In certain cases, officers may enter and arrest without a warrant.
S Krishnan, Secretary of the Ministry of Electronics and IT, informed that the notification of the date of implementation will follow soon. “We also have to draft the rules under the bill, and issue the rules which are required to be drafted. As the bill is structured, even without rules, because the rules govern certain aspects, there are certain provisions in the bill which can come into force without the rules, but that is a decision we will take,” he said.
Krishnan admitted that the new law could result in a shortfall in Goods and Services Tax revenue, estimated between Rs 15,000 crore and Rs 20,000 crore annually. But he underlined that fiscal concerns had not overridden the broader social objective. “I think when the government has a larger social objective in mind, I think revenue loss is not the primary consideration. In any case, the bill had the approval and the consent of the Finance Ministry as well,” he said.
Follow us
