Online Gaming Regulation Act: India Draws A Line Between Addiction & Innovation

But that is what Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Ashwini Vaishnaw, stated in Parliament, while moving ‘The Promotion and Regulation of Online Gaming Bill, 2025’ for passage.

His statement was not intended to cause any apprehension among the public, but to raise awareness about two key points:

First, the Modi government had the conviction and strong political will to eradicate the rapidly spreading technological and social menace of online gaming, regardless of how powerful or well-connected its backers may be — some visible, others covert.

Second, the government is fully prepared to fight any legal or political battles that may arise at subsequent stages.

In many ways, it was also an appeal to various segments of Indian society to be vocal and supportive of this reformist move.

According to official estimates, around 45 crore people lost over Rs 20,000 crore due to this form of gaming addiction. This has led to numerous suicides across different age groups and regions of the country.

The Minister asserted: “This is bigger than the drug menace and is growing rapidly. Had we not controlled it now, it would have become completely unmanageable. We have found irrefutable proof that the algorithms used by online money gaming firms are designed in such a way that no user can emerge as a net winner in the long run.”

Key Aspects Of The Bill

Ban Online Money Games: The provisions state: "It extends to the whole of India and also applies to online money gaming services offered within the territory of India or operated from outside the territory of India." With Presidential assent given on Friday, it has now become an Act.

Recognise The Legitimate Online Gaming Sector: The Act also acknowledges the emergence of online gaming as a rapidly growing segment of the creative economy, contributing significantly to innovation, employment, and export earnings.

India, with its large pool of skilled professionals, technological prowess, and growing domestic market, has the potential to lead the global online gaming value chain.

The new law intends to ban online money gaming while simultaneously games promoting e-sports, online social (including casual games), and educational games. A dedicated authority will soon be established to provide coordinated policy support, strategic development, and regulatory oversight.

Addressing Concerns

Some have raised concerns that banning online money gaming could result in job losses, loss of livelihood, and wasted investments worth hundreds of crores. However, similar objections were raised when single-digit lotteries were banned through parliamentary legislation in 1999. There are notable parallels between that move and the current ban.

Given that data is among the cheapest in the world, mobile connectivity is widespread, and access to gaming apps is easy, the negative social impact of online money gaming is far greater than that of lotteries or chit fund scams.

Aggressive marketing, including celebrity endorsements, further intensified the problem — something the Act now addresses.

Protecting Victims, Targeting Offenders

Importantly, users of such platforms will be considered victims and will not be criminalised. The law aims to protect them while going after the real wrongdoers.

A multitude of online money gaming service providers — many operating from offshore locations — have evaded regulation, dodged taxes, and posed enforcement challenges due to jurisdictional issues. Some platforms have allegedly been linked to money laundering, financial fraud, terrorist financing, and even covert communication for terrorist organisations.

It would have been better had the Opposition participated in the debate when the Bill was introduced and passed in both Houses of Parliament. Their suggestions could have further strengthened the legislation.