New Delhi: The government has introduced the Promotion and Regulation of Online Gaming Bill, 2025, aiming to regulate the online gaming sector in India. The bill seeks to ban online money games and related services while promoting e-sports, social games, and educational games. Following the Cabinet’s approval, shares of major gaming platforms such as Nazara Technologies and Delta Corp tumbled, reflecting market uncertainty.

Under the proposed framework, online games will be classified into four categories—e-sports, social games, educational games, and online money games. While e-sports and educational games will be encouraged as skill-based activities, online money games involving cash rewards will face a total ban due to concerns over addiction, financial losses, and mental health issues.

The bill also includes strict advertising and payment restrictions. No individual, company, or platform can promote or process transactions for money-based online games. Violators can face imprisonment of up to three years, fines up to ₹1 crore, or both. Repeat offenders could face harsher penalties, including up to five years in jail and fines of ₹2 crore. Payment gateways and banks are also prohibited from processing such transactions.

To enforce the law, a central authority will be established to issue guidelines, monitor compliance, and regulate the industry. Additionally, the bill focuses on data protection, age-appropriate access, and measures to prevent addiction among minors, including mandatory KYC, parental controls, and time limits for certain games.

According to industry estimates, India’s online gaming market is valued at $3.7 billion and could grow to $9.1 billion by 2029. While the ban is intended to curb harmful gaming practices, the move has drawn criticism from the All India Gaming Federation (AIGF), which warned that an outright ban could harm the legitimate industry and drive users to illegal platforms.

Industry leaders have praised the government’s recognition of e-sports as a skill-based competitive activity, which could open new career opportunities and align India with the global gaming ecosystem. However, experts have urged the government to provide clear definitions and guidelines to avoid confusion between e-sports and gambling-related activities.