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The recent Promotion and Regulation of Online Gaming Act, 2025, that came into force in August, has been one of the most widely anticipated regulations in the digital entertainment industry. Among provisions such as promoting esports and licensing of online gaming, the legislation notably introduces a blanket ban on real-money gaming (RMG). The rationale behind this was to reduce its addictive effects, protect minors, and limit the circulation of black-money. However, in reality, the Act has spawned apprehension about the legislative process, regulatory redundancy, and unintended consequences that can shift users and revenue to offshore operators.

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From Debate to Prohibition: How the Act was Passed 

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The Promotion and Regulation of Online Gaming Act was passed as a central law, providing the earlier fragmented state laws on online betting and gambling with an overarching framework. Proponents argue that, among other provisions, some kind of unified national framework was needed to deal with the scale of online betting due to its detrimental impact on young users. The current Act is a direct transition to criminalisation rather than the swings of self-regulation and partial restrictions used during the previous decade of incremental experiments in regulation. Stakeholders in the industry believe that this type of sudden, blanket action creates uncertainty and erodes confidence in the system in the long run. Further, critics have pointed out that the Bill was passed without adequate Parliamentary deliberation. A question has been raised about whether procedural safeguards were upheld. 

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Prohibition of Online RMG

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Within the Indian context, a distinction has long been drawn between games of skill and games of chance, with the latter, like a lottery or a casino, being severely prohibited under state laws, whereas the former, like rummy or fantasy sports, have generally been allowed after being recognized as skill-based by court authorities. The Online Gaming Act of 2025 abolishes this distinction on the internet, thus banning all RMG actions that include cash transactions, regardless of skill or chance. The act also criminalises the advertising, facilitation, and hosting of such sites, thereby penalizing offshore operators with an Indian customer focus, and subjecting their payment gateways, app stores, and advertisers under its jurisdiction to penalties. 

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The Problem of Overlap

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One potential issue that the Act presents is its overlap with the existing laws. The IT Rules 2023 mandate intermediaries in the gaming sector to appoint compliance officers, submit monthly reports, and undergo due diligence. The new Act introduces a three-level classification of games, whereas the advisories of the Central Consumer Protection Authority (CCPA) under the Consumer Protection Act treat online betting as an unfair trade practice. 

This multiplicity of regulations builds a maze where different Ministries and state governments have overlapping jurisdiction.  Policy experts caution that such an overlap can create enforcement challenges, punish players who act within the law, and leave offshore malefactors undetected.  

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Unintended Consequences: Driving Users Offshore

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Outright prohibition will hardly ever remove demand; it will only push it out. Offshore sites have taken advantage of the situation as Indian operators like Dream11 shut down their money games after the ban. It has already been reported that there is aggressive advertising by foreign betting companies that are not registered in India, most of which have backend infrastructure that cannot be regulated by the Act (Storyboard18).

This diversion of users to unregulated markets has two main risks. First, Indian players are deprived of the consumer protection offered to them in local regulation, and their data can be sent to suspicious foreign organizations. Second, the government loses control over the money flow that can be transferred via informal channels or cryptocurrencies or other obscure systems. Industry analysts are alerting that such developments may only worsen the issue of black-money instead of solving it (IGamingBusiness).

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Advertising, Age Gating, and Digital Rights

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The Act has also strengthened advertisement regulations, aligning with advisories issued by the Advertising Standards Council of India, which prohibits the targeting of minors. However, critics believe that the application remains inadequately enforced, and children can with comparative ease access unregulated overseas applications. In the absence of complementary digital literacy programs and strong parental controls, these limitations can be effectively superficial instead of real. 

Privacy advocates also warn that frequent prompts, vague messages, or invasive surveillance can weaken the digital rights of users instead of strengthening them. Overregulation has also been found to create banner blindness in global contexts where users ignore warnings without first clearly understanding them.

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Enforcement Challenges

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The Act puts a lot of responsibilities on many stakeholders, including the Ministry of Information and Broadcasting (MIB) and the Reserve Bank of India (RBI). Platforms like Google Play and Apple App Store are expected to verify government-approved lists of compliant gaming apps and remove non-compliant or banned ones, as directed by the MIB and the RBI. Although this pressure may motivate intermediaries to collaborate, it may also have a risk of overreach when it is applied unequally or in a political way.

According to the experts, the solution should be underpinned by technology itself. Artificial intelligence can be used to identify illegal advertisements, track illegal gaming in children, and trace payment streams. At the same time, the regulators should be able to issue final lists of either compliant or non-compliant applications to advise the consumers and intermediaries alike. Without such practical provisions, enforcement risks remaining patchy.

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Online Gaming Rules

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On 1 October 2025, the government issued a draft of the Online Gaming Rules in accordance with the Promotion and Regulation of Online Gaming Act. The regulations focus on the creation of the compliance frameworks, define the classification of the allowed gaming activities, and prescribe grievance-redressal mechanisms aiming to promote the protection of the players and procedural transparency. However, the draft does not revisit or soften the existing blanket prohibition on real-money gaming (RMG) and, hence, the questions about the effectiveness of enforcement and regulatory clarity remain open (Times of India, 2025).

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Protecting Consumers Without Stifling Innovation

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The ban highlights a larger conflict, i.e., the protection of the vulnerable users without stifling an industry that has traditionally contributed to innovation, jobs, and the collection of tax revenue. Online gaming has significantly added to the GST collections, and the sudden shakeup brings fiscal concerns (Reuters).

Several legal objections to the Act have already been brought, asking whether the Act is constitutional, especially as to whether the restrictions are proportional to the right to trade. The outcome of such cases will define the future trajectory of the digital economy of India (Reuters).

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Way Forward

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Instead of outright prohibition, a more balanced approach that incorporates regulation and consumer protection is suggested by the experts. Key measures could include:

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• A definite difference between games of skill and games of chance, with proportionate regulation.
• Age confirmation and campaign against online illiteracy to protect the underage population.
• Enhanced advertising and payments compliance requirements and enforceable non-compliance penalty.

• Coordinated oversight among different ministries to prevent duplication and regulatory struggle.
• Leveraging AI and fintech to track illegal financial activities (black money flows) and developing innovation.

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Conclusion

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The Online Gaming Act 2025 addresses social issues, such as addiction, monetary risk, and child safety, that require governance interventions.  However, the path it follows to this end, that of total prohibition,  is more likely to spawn a new set of issues instead of providing solutions because it will send consumers to offshore sites, undermine consumer rights, and slow innovation.

For India, the real challenge is not whether to prohibit online money gaming but how to create a balanced, transparent, and enforceable framework that protects users while fostering a responsible gaming ecosystem. India can reduce the adverse consequences of online betting without keeping the industry in the shadows with better coordination, reasonable use of technology, and balanced protection.

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References:

• India's Dream11, top gaming apps halt money-based games after ban
• India online gambling ban could drive punters to black market
• Offshore betting firms with backend ops in India not covered by online gaming law
• The Great Gamble: India’s Online Gaming Ban, The GST Battle, And What Lies Ahead.
• Game Over for Online Money Games? An Analysis of the Online Gaming Act 2025
• Government gambles heavily on prohibiting online money gaming
• Online gaming regulation: New rules to take effect from October 1; government stresses consultative approach with industry

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The United Nations in December 2019 passed a resolution that established an open-ended ad hoc committee. This committee was tasked to develop a ‘comprehensive international convention on countering the use of ICTs for criminal purposes’. The UN Convention on Cybercrime is an initiative of the UN member states to foster the principles of international cooperation and establish legal frameworks to provide mechanisms for combating cybercrime. The negotiations for the convention had started in early 2022. It became the first binding international criminal justice treaty to have been negotiated in over 20 years upon its adoption by the UN General Assembly.  

This convention addresses the limitations of the Budapest Convention on Cybercrime by encircling a broader range of issues and perspectives from the member states. The UN Convention against Cybercrime will open for signature at a formal ceremony hosted in Hanoi, Viet Nam, in 2025. The convention will finally enter into force 90 days after being ratified by the 40th signatory.

Objectives and Features of the Convention

• The UN Convention against Cybercrime addresses various aspects of cybercrime. These include prevention, investigation, prosecution and international cooperation. 
• The convention aims to establish common standards for criminalising cyber offences. These include offences like hacking, identity theft, online fraud, distribution of illegal content, etc. It outlines procedural and technical measures for law enforcement agencies for effective investigation and prosecution while ensuring due process and privacy protection. 
• Emphasising the importance of cross-border collaboration among member states, the convention provides mechanisms for mutual legal assistance, extradition and sharing of information and expertise. The convention aims to enhance the capacity of developing countries to combat cybercrime through technical assistance, training, and resources. 
• It seeks to balance security measures with the protection of fundamental rights. The convention highlights the importance of safeguarding human rights and privacy in cybercrime investigations and enforcement.
• The Convention emphasises the importance of prevention through awareness campaigns, education, and the promotion of a culture of cybersecurity. It encourages collaborations through public-private partnerships to enhance cybersecurity measures and raise awareness, such as protecting vulnerable groups like children, from cyber threats and exploitation.

Key Provisions of the UN Cybercrime Convention

Some key provisions of the Convention are as follows:

• The convention differentiates cyber-dependent crimes like hacking from cyber-enabled crimes like online fraud. It defines digital evidence and establishes standards for its collection, preservation, and admissibility in legal proceedings.
• It defines offences against confidentiality, integrity, and availability of computer data and includes unauthorised access, interference with data, and system sabotage. Further, content-related offences include provisions against distributing illegal content, such as CSAM and hate speech. It criminalises offences like identity theft, online fraud and intellectual property violations.
• LEAs are provided with tools for electronic surveillance, data interception, and access to stored data, subject to judicial oversight. It outlines the mechanisms for cross-border investigations, extradition, and mutual legal assistance.
• The establishment of a central body to coordinate international efforts, share intelligence, and provide technical assistance includes the involvement of experts from various fields to advise on emerging threats, legal developments, and best practices.

Comparisons with the Budapest Convention

The Budapest Convention was adopted by the Committee of Ministers of the Council of Europe at the 109th Session on 8 November 2001. This Convention was the first international treaty that addressed internet and computer crimes. A comparison between the two Conventions is as follows:

• The global participation in the UNCC is inclusive of all UN member states whereas the latter had primarily European with some non-European signatories. 
• The scope of the UNCC is broader and covers a wide range of cyber threats and cybercrimes, whereas the Budapest convention is focused on specific offences like hacking and fraud. 
• UNCC strongly focuses on privacy and human rights protections and the Budapest Convention had limited focus on human rights.
• UNCC has extensive provisions for assistance to developing countries and this is in contrast to the Budapest Convention which did not focus much on capacity building.

Future Outlook

The development of the UNCC was a complex process. The diverse views on key issues have been noted and balancing different legal systems, cultural perspectives and policy priorities has been a challenge. The rapid technology evolution that is taking place requires the Convention to be adaptable to effectively address emerging cyber threats. Striking a balance remains a critical concern. The Convention aims to provide a blended approach to tackling cybercrime by addressing the needs of countries, both developed and developing.

Conclusion

The resolution containing the UN Convention against Cybercrime is a step in global cooperation to combat cybercrime. It was adopted without a vote by the 193-member General Assembly and is expected to enter into force 90 days after ratification by the 40th signatory. The negotiations and consultations are finalised for the Convention and it is open for adoption and ratification by member states. It seeks to provide a comprehensive legal framework that addresses the challenges posed by cyber threats while respecting human rights and promoting international collaboration. 

References

• https://consultation.dpmc.govt.nz/un-cybercrime-convention/principlesandobjectives/supporting_documents/Background.pdf 
• https://news.un.org/en/story/2024/12/1158521 
• https://www.interpol.int/en/News-and-Events/News/2024/INTERPOL-welcomes-adoption-of-UN-convention-against-cybercrime#:~:text=The%20UN%20convention%20establishes%20a,and%20grooming%3B%20and%20money%20laundering 
• https://www.cnbctv18.com/technology/united-nations-adopts-landmark-global-treaty-to-combat-cybercrime-19529854.htm 

Introduction

A hacking operation has corrupted data on Madhya Pradesh's e-Nagarpalika portal, a vital online platform for paying civic taxes that serves 413 towns and cities in the state. Due to this serious security violation, the portal has been shut down. The incident occurred in December 2023. This affects citizens' access to vital online services like possessions, water, and municipal tax payments, as well as the issuing of obituaries and certain documents offered via online portal. Ransomware which is a type of malware encodes and conceals a victim's files, and data making it inaccessible and unreachable unless the attacker is paid a ransom. When ransomware initially appeared, encryption was the main method of preventing individuals' data from such threats.

The Intrusion and Database Corruption: Exposing the Breach's Scope

The extent of the assault on the e-Nagarpalika portal was revealed by the Principal Secretary of the Urban Administration and Housing Department of Madhya Pradesh, in a startling revelation. Cybercriminals carried out a highly skilled assault that led to the total destruction of the data infrastructure covering all 413 of the towns for which the website was responsible.

This significant breach represents a thorough infiltration into the core of the electronic civic taxation system, not just an arrangement. Because of the attackers' nefarious intent, the data integrity was compromised, raising questions about the safeguarding of private citizen data. The extent of the penetration reaches vital city services, causing a reassessment of the current cybersecurity safeguards in place. 

In addition to raising concerns about the privacy of personal information, the hacked information system casts doubt on the availability of crucial municipal services. Among the vital services affected by this cyberattack are marriage licenses, birth and death documents, and the efficient handling of possessions, water, and municipal taxes.

The weaknesses of electronic systems, which are the foundation of contemporary civic services, are highlighted by this incident. Beyond the attack's immediate interruption, citizens now have to deal with concerns about the security of their information and the availability of essential services. This tragedy is a clear reminder of the urgent need for robust safety safeguards as authorities work hard to control the consequences and begin the process of restoration.

Offline Protections in Place

The concerned authority informed the general population that the offsite data, which has been stored up on recordings every three days, is secure despite the online attack. This preventive action emphasises how crucial offline restores are to lessening the effects of these kinds of cyberattacks. The choice to keep the e-Nagarpalika platform offline until a certain time highlights how serious the matter is and how urgently extensive reconstruction must be done to restore the online services offer

Effect on Civic Services

The e-Nagarpalika website is crucial to providing online municipal services, serving as an invaluable resource for citizens to obtain necessary paperwork and carry out diverse transactions. Civic organisations have been told to function offline while the portal remains unavailable until the infrastructure is fully operational. This interruption prompts worries about possible delays and obstacles citizens face when getting basic amenities during this time.

Examination and Quality Control

Information technology specialists are working diligently to look into the computer virus and recover the website, in coordination with the Madhya Pradesh State Electronic Development Corporation Limited, the state's cyber police, and the Indian Computer Emergency Response Team (CERT-In). Reassuringly for impacted citizens, authorities note that there is currently no proof of data leaks arising from the hack.

Conclusion

The computerised attack on the e-Nagarpalika portal in Madhya Pradesh exposes the weakness of computer networks. It has affected the essential services to public services offered via online portal. The hack, which exposed citizen data and interfered with vital services, emphasises how urgently strong safety precautions are needed. The tragedy is a clear reminder of the need to strengthen technology as authorities investigate and attempt to restore the system. One bright spot is that the offline defenses in place highlight the significance of backup plans in reducing the impact of cyberattacks. The ongoing reconstruction activities demonstrate the commitment to protecting public data and maintaining the confidentiality of essential city operations.

References

• https://government.economictimes.indiatimes.com/tag/cyber+attack
• https://www.techtarget.com/searchsecurity/definition/ransomware#:~:text=Ransomware%20is%20a%20type%20of,accessing%20their%20files%20and%20systems.
• https://www.business-standard.com/india-news/mp-s-e-nagarpalika-portal-suffers-cyber-attack-data-corrupted-officials-123122300519_1.html
• https://www.freepressjournal.in/bhopal/mp-govts-e-nagar-palika-portal-hacked-data-of-over-400-cities-leaked