The Promotion and Regulation of Online Gaming Bill, 2025 (the ‘Bill’) was passed by the Parliament on August 21, 2025.

The Bill introduces a blanket prohibition on online money games and aims to provide for growth and development of e-sports and online social games by way of common infrastructure, specialised research and training centers. Some key features of the Bill are:

i.    Definition of ‘Online Game’: Any game which is played on an electronic or digital device and is managed and operated as a software through the internet or any other kind of technology facilitating electronic communication.

ii.   Definitions of ‘E-Sport’, ‘Online Money Game’, and ‘Online Social Game’ Introduced: Online games have been categorised into the following:

a. E-Sport: An online game recognised under the National Sports Governance Act, 2025, and played as part of multi-sport events, where individuals or teams compete in a multi-player format governed by predefined rules. The outcome must be determined solely by skill (physical dexterity, mental agility, etc.). Although registration fees may be charged and prize money awarded, the activity must not involve the placing of bets or other stakes, nor the expectation of any winnings arising from such stakes.

b. Online Money Game: An online game, irrespective of whether it involves skill, chance, or both, requiring players to pay fees, deposit money or other stakes in expectation of reaping monetary benefit or some other enrichment in return.

c. Online Social Game: An online game, offered solely for entertainment, recreation or skill development purposes. Payment of subscription or one time access fee is permitted, as long as it does not entail a stake or wager.

iii.  Prohibition of Online Money Gaming:

a. no person can offer, aid, abet, induce or otherwise engage or indulge in the offering of online money games;

b. no person can make or cause to be made, aid, abet, induce or otherwise engage or indulge in advertisements/promotion of online money gaming; and

c. banks and financial institutions are prohibited from authorising transactions facilitating online money gaming services.

iv.   Penalty for Online Money Gaming:

a. any contravention of the provisions pertaining to offering of online money gaming and allowing of transactions related to online gaming services are subject to a fine or imprisonment, or both;

b. any contravention of the provisions of making of advertisements are subject to a fine or imprisonment, or both;

c. second and subsequent offences are subject to imprisonment and fine, both; and

d. offences of offering online gaming services and facilitating financial transactions for such games will be cognizable and non-bailable.

v.    Recognition and Registration of E-Sport and Online Social Gaming: The Bill empowers the Central Government to formulate policies and implement measures for the promotion and development of e-sports and online social games.

vi.   Creation of a New Authority on Online Gaming: The Central Government may constitute a new authority for registering and regulating e-sports and online social games.

The Bill is pending assent of the President of India and will come into force on the date appointed by the Central Government thereafter.