EXCLUSIVE: Govt to regulate E-Sports and social games, prohibit online money gaming
The Draft note which is with Storyboard18 stated that the exponential growth of online gaming in India, fueled by increased internet penetration and smartphone usage, has brought to light a number of concerns.
ADVERTISEMENT
The Government of India's Ministry of Electronics and Information Technology has drafted a note for the Cabinet proposing the introduction of "The Promotion and Regulation of Online Gaming Bill, 2025" in Parliament. The bill aims to promote e-Sports and online social games while simultaneously prohibiting online money gaming. This legislative action is considered imperative due to the social, financial, and security threats posed by unregulated online money gaming.
The Draft note which is with Storyboard18 stated that the exponential growth of online gaming in India, fueled by increased internet penetration and smartphone usage, has brought to light a number of concerns. According to the Ministry, while online gaming is a significant part of the creative economy and can contribute to cognitive development and technological literacy, online money gaming in particular raises significant issues. These issues include addiction, mental health problems, financial losses leading to suicides, and manipulative practices like opaque algorithms and bots.
The proposed bill seeks to address these concerns by:
Enabling the promotion of e-Sports and online social games.
Prohibiting the offering, aiding, or abetting of any online money gaming service.
Prohibiting advertisements that promote online money games.
Prohibiting financial institutions from facilitating transactions for online money games.
Laying out punishments and fines for offenses, with enhanced penalties for repeat offenders.
Providing for the blocking of online money game-related information, as well as investigation, search, and seizure powers.
The Ministry justifies the proposal on constitutional grounds, citing the State's responsibility under Article 21 to protect the right to life and personal liberty, which includes mental well-being and safety. The note also references Article 47, which places a duty on the State to improve public health. The government argues that a central law is necessary as online money gaming platforms operate across state and national borders, making it a matter of national importance involving cross-border regulation and cybersecurity.
The bill also addresses the lack of a uniform legal framework, as current laws are fragmented and inconsistent judicial interpretations have led to a "regulatory grey zone". Unregulated online money gaming platforms pose national security and economic threats, including their use for money laundering, illicit fund transfers, and potential messaging by terror organizations.
The proposed legislation is expected to generate employment in the online gaming industry. It is also seen as a step towards achieving the "Atma Nirbhar Bharat" vision by fostering indigenous game development, reducing reliance on foreign platforms, and positioning India as a global hub for responsible game development.
The Ministry has circulated the draft note to several other ministries for consultation, including the Ministry of Home Affairs, Department of Expenditure, Department of Revenue, and Department of Sports.
The bill envisages the creation of an authority to regulate online gaming. While the structure of this authority will be notified after the bill's enactment, initial financial implications are estimated at Rs. 50 crores for capital expenditure and Rs. 20 crores for annual recurring expenditure. Necessary actions are to be taken within six months of receiving Cabinet approval. The note has been seen and approved by the Minister of Electronics and Information Technology.
