India's Online Gaming Bill 2025: A New Era of Regulation and Restrictions

India is witnessing a significant transformation in its online gaming landscape with the Union Cabinet's approval of the Promotion and Regulation of Online Gaming Bill, 2025. This legislation is poised to introduce some of the strictest regulatory frameworks in the online gaming space by targeting money-based gaming platforms.

The bill proposes a blanket ban on all real-money gaming transactions, regardless of whether the game is predominantly skill-based or chance-based. This represents a decisive shift from earlier regulatory approaches that distinguished games of skill from gambling. Under the new law, games involving wagering money or valuables will be prohibited.

Financial institutions and payment gateways will be barred from processing transactions linked to such platforms, effectively severing the financial connections that support the real-money gaming sector. Advertising of these games will also become illegal. However, players can still access free-to-play or subscription-based games where no wagering is involved.

To oversee this new regime, the bill envisions the creation of a National e-Sports Authority tasked with regulating, promoting, and supervising the gaming sector including e-sports, educational games, and social gaming. Notably, the bill formally recognizes e-sports as competitive skill-based games played according to standardized rules, distinguishing them clearly from banned money games.

Stringent penalties have been proposed to enforce the regulations. Operators found offering or facilitating real-money games may face imprisonment of up to three years and fines up to ₹1 crore. Advertising violations carry up to two years in jail and fines of ₹50 lakh.
Importantly, users of these games will not face criminal liability; the law places full responsibility on companies and operators, aiming to protect consumers while asserting regulatory clarity.

This legislative move follows prior government actions including the imposition of a 28% Goods and Services Tax on gaming revenues, a 30% tax on net winnings, criminalization of unauthorized betting, and blocking of over 1,400 illegal gambling websites since 2022. The shift signals a transition from a tax-and-regulate approach to a prohibit-and-enforce strategy concerning real-money gaming.

The bill's introduction to Parliament has generated mixed reactions, with industry stakeholders facing uncertainty while the government emphasizes safeguarding users and national security concerns. The policy aims to promote responsible gaming and the structured growth of legitimate gaming and e-sports sectors in India.