NEW DELHI: A day after the Cabinet approved the introduction of the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to prohibit individuals or organisations from offering online money games or related services in India, shares of gaming platforms tumpled. In early trade, shares of Nazara Technologies fell by nearly 7%, while casino operator Delta Corp also plunged before a partial recovery later in the session. Other platforms providing online money games such as Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle are now facing an existential crisis.The government on Tuesday announced that the Promotion and Regulation of Online Gaming Bill, 2025 will be introduced in the Lok Sabha. According to the proposed draft of the Bill, the government sees an urgent need to regulate online gaming—promoting social games and e-Sports on the one hand while banning online money gaming in the larger public interest.What are the different online games?The Online Gaming Bill, 2025 classifies online games into four types—e-sports, social games, educational games, and online money games. E-sports are competitive video games played in tournaments, similar to traditional sports. Games like PUBG, FIFA, or Valorant are examples. The government wants to promote e-sports as a skill-based activity that can create careers.Social games are casual games played for fun and entertainment, often with friends such as Ludo King, Candy Crush, and online chess. These games are safe but will still be regulated for user safety, age-appropriate access, and data protection. Educational games are designed for learning and skill-building. They include math quizzes, coding games for kids, or apps like Duolingo. The Bill supports such games for their positive value.Online money games, where players deposit money and play for cash rewards, will be completely banned because of their addictive and harmful effects. According to industry reports, India’s online gaming market is currently valued at $3.7 billion and is projected to more than double to $9.1 billion by 2029.Why is the Bill needed?According to the government, online gaming in India has witnessed an explosive rise, driven by affordable smartphones and deeper internet penetration in the country. Currently, there is no uniform legal framework to regulate the sector, nor is there a central authority to oversee content standards, user safety, data protection, or financial practices in social games.“In the absence of a clearly defined framework, both e-Sports and online social games in India continue to operate in a regulatory grey zone, limiting the sector’s potential while exposing users—especially young audiences—to various risks,” reads the draft.The government has also warned that unchecked growth of online gaming platforms has led to serious economic and psychological consequences, making clear rules urgent and necessary. It stressed that the growth of this sector must align with national interest, public safety, and ethical business practices.The draft further highlights that unregulated expansion of online gaming has contributed to addiction, debt traps, suicides, and mental health issues. Many money gaming platforms are operating across state and national borders, often through offshore servers, making regulation even more pressing.A structured regulatory approach, the government argues, will help address key concerns including age-appropriate access and addiction risks, particularly among vulnerable groups like minors. Moreover, formal recognition and governance of e-Sports will also allow India to tap into the global competitive gaming ecosystem and open new career opportunities for young players. What is Prohibition in the Online Gaming Bill, 2025?The proposed Promotion and Regulation of Online Gaming Bill, 2025 clearly says that no one can run or help run online money games in India. This means individuals, companies, or any platform are not allowed to offer such games.The Bill also bans advertisements. No person or organisation can make or publish ads—on TV, social media, or any online platform—that directly or indirectly encourage people to play money-based online games.Even banks and payment companies cannot process or allow transactions related to these games. In short, prohibition here means a total ban on offering, promoting, or funding online money gaming.To make sure the law is followed, the Central Government will set up or appoint an Authority. This Authority will issue orders and guidelines, and every gaming platform will have to obey themPunishment and PenaltyAs per the proposed law, anyone offering online money gaming services in violation of Section 5 can face imprisonment of up to three years, a fine of up to ₹1 crore, or both. The law also states that any person who makes or publishes advertisements for such games can be punished with imprisonment of up to two years, a fine of up to ₹50 lakh, or both. Similarly, anyone involved in processing or authorising payments for online money gaming can face imprisonment of up to three years, a fine of up to ₹1 crore, or both.
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