President Murmu Gives Assent: Online Gaming Bill Becomes Law

On August 22, 2025, President Droupadi Murmu gave her official assent to the Promotion and Regulation of Online Gaming Bill, 2025, transforming it into law. This landmark legislation represents a significant shift in India’s online gaming landscape, aiming to curb real-money online gaming while promoting e-sports, skill-based games, and digital entertainment innovation.

Image from Times of India

The Objectives of the Online Gaming Bill

The primary aim of the bill is to regulate the fast-growing online gaming industry in India and address the social and financial risks associated with real-money gaming. The legislation specifically prohibits online games that involve monetary stakes, such as poker, fantasy sports, and other betting-based formats, citing concerns over addiction and financial loss. By banning such games, the government seeks to protect users from potential exploitation and create a safer online gaming environment.

Simultaneously, the bill encourages skill-based gaming and e-sports, recognizing the potential of these formats to foster talent, create employment opportunities, and position India as a global hub for digital gaming. Through this balanced approach, the government intends to both regulate risk and support innovation.

Legal Provisions and Penalties

Under the new law, facilitators of banned online gaming platforms face strict consequences. Those found operating or promoting real-money games may face imprisonment for up to three years along with fines reaching ₹1 crore. Repeat violations carry even harsher penalties, including up to five years in prison and fines of ₹2 crore. The legislation also restricts the advertisement and promotion of such platforms, aiming to curb the widespread influence of online money gaming.

The bill provides a clear legal distinction between games of chance and skill-based games, ensuring that legitimate skill-based platforms can continue to operate. This framework establishes regulatory clarity for both consumers and businesses, while a central authority will oversee compliance, classification, and registration of online games in India.

Industry Response and Adaptation

The passage of the Online Gaming Bill has triggered swift changes in the industry. Leading companies such as Dream11, Mobile Premier League (MPL), and Zupee have suspended their real-money gaming operations to comply with the new regulations. Many of these platforms are now pivoting towards free-to-play games and skill-based formats like Ludo, Snakes & Ladders, and e-sports competitions, ensuring they remain accessible to their users while aligning with the legal framework.

While the industry broadly supports the promotion of e-sports, some stakeholders have voiced concerns regarding the sudden regulatory shift. Questions remain about the classification of certain skill-based games, with companies seeking clarity or exploring legal challenges to ensure fair implementation.

Government Vision for the Future

Beyond regulation, the government envisions India as a hub for innovation in digital entertainment. By establishing a structured legal environment, the bill aims to stimulate growth in e-sports, game development, and online skill-based gaming platforms. Plans for a national authority dedicated to overseeing e-sports and social gaming are under consideration, highlighting the government’s commitment to fostering both safety and innovation in the sector.

Conclusion

The Online Gaming Bill 2025 marks a defining moment in India’s digital entertainment journey. By curbing online money gaming, the legislation addresses critical social and financial risks, while simultaneously opening doors for the growth of e-sports and skill-based games. The success of this initiative will depend on how effectively the industry adapts to the new legal framework and how regulatory authorities implement and oversee the provisions of the law. This is a transformative step towards a safer, more innovative, and globally competitive online gaming ecosystem in India.

(Sources: LiveMint, Hindustan Times, Times of India)