The Promotion and Regulation of Gaming Act, 2025: Jackpot of Progress or a Roll of the Regulatory Dice
In the past decade, India’s gaming sector has seen a surprising but swift advancement, which brought along millions of players and over billions in investments and has even been estimated to be at $23 billion. Whether it's fantasy cricket and Ludo apps, high-stakes poker, or rummy platforms, investing real money in online gaming and gambling has become a beloved hobby for many. Moreover, it not only gave a boost to the economy but also contributed to creative innovation and the generation of employment.
The real concern lies behind the glossy numbers, tales of addiction, financial detriment, and the never-ending game of cat and mouse with legal loopholes. The sector’s meteoric rise has raised various concerns relating to national financial integrity, regulatory clarity and consumer safety.
In light of this, the Promotion and Regulation of Online Gaming Act, 2025, which was passed by Parliament and signed into law on August 22, stands out as a significant development. The Act, which is positioned as a consumer protection and sector-defining law, aims to distinguish between innovation and exploitation by acknowledging e-sport as a legitimate activity and establishing unambiguous boundaries around the larger gaming industry.
Key Highlights of the Act
- Complete Ban on all games involving Real-Money: All e-games, whether based on skill or luck, that involve monetary stakes have been banned.
- Prohibition of Ads: Promotion of such e-games has also been disallowed across all platforms.
- Legal Ramifications: Operation of such games may lead to up to 3 years in prison with a 1 cr fine; Advertisement for the same may lead to up to 2 years in prison with a 50 lakh fine. However, in case of repeat offences, this may go up to 3-5 years in prison and 2 cr in fines.
- Creation of Online Gaming Authority: The creation of a national-level regulatory body to classify and monitor games, register platforms and enforce the dedicated rules.
- Support for eSports and Social & Educational games: All kinds of games that are non-monetary, promote social and educational growth, will not only be recognised but encouraged. Meanwhile, eSports will also gain official recognition under the Ministry of Sports.
Positive Impacts
- Addressal & Tackling of Addiction and Financial Ruin: The major reason behind the ban is to reduce the cases of players, mainly youth, getting into gambling and losing huge amounts of money to betting apps and games, and to protect vulnerable users
- Boost to eSports & Regulatory Clarity: The law not only legitimises the eSport sector but also provides opportunities for scholarship and other financial benefits, along with windows for professional tournaments and platforms on global stages. Along with this aims to bring about an order around e-games of skill versus luck.
- Fraud Monitoring & Control: The law makes sure to block off avenues for money laundering, gambling and illegal betting networks.
- Promotion of Safe Digital Ecosystem: Encouraging social, developmental and educational games to focus on skill, learning and fun.
Challenges
The fact that the Promotion and Regulation of Online Gaming Act, 2025 is still in its early stages, which must be recognised. In the end, its effectiveness will rely not only on the letter of the law but on the strength of its enforcement and the wisdom of its application. The Act has the potential to safeguard the interests of at-risk youth from the dangers of gambling and its addiction, if it is applied carefully and clearly, all the while maintaining the digital ecosystem as a place of innovation, equity, and trust.
- Blanket Ban: By imposing a blanket ban on games that have long been justified as skill-based like rummy or fantasy cricket, the Act runs the risk of suppressing respectable enterprises and centres of innovation. Many startups that were once hailed for being at the forefront of India’s digital innovation may now find it difficult to thrive in an unpredictable regulatory environment.
- Rise of Illegal Platforms: History offers a sobering lesson, prohibition does not eliminate demand, it simply drives it underground. The prohibition of money games may encourage the growth of unregulated, offshore sites, where players are more vulnerable to fraud, data theft, and abuse and have no way to seek consumer protection.
Conclusion
The Act is definitely a tough and bold stand to check and regulate India’s digital gaming industry, but it is also a double-edged sword. It brings in much-needed consumer protection regulations in place and legitimises e-Sports. However, it also casts a long shadow over a successful economy and runs the risk of fostering a black market that is more harmful than the issue it was intended to address.
Therefore, striking a balance between innovation and protection, between law and liberty, will be considered more important in the coming years than the success of regulations alone. India’s legitimacy as a digital economy ready for global leadership, as well as the future of its gaming industry, will depend on how it handles this delicate balance.
References:
- https://economictimes.indiatimes.com/tech/technology/gaming-bodies-write-to-amit-shah-urge-to-block-blanket-ban-warn-of-rs-20000-crore-tax-loss/articleshow/123392342.cms
- https://m.economictimes.com/news/india/govt-estimates-45-cr-people-lose-about-rs-20000-cr-annually-from-real-money-gaming/articleshow/123408237.cms
- https://www.cyberpeace.org/resources/blogs/promotion-and-regulation-of-online-gaming-bill-2025-gets-green-flag-from-both-houses-of-parliament
- https://www.thehindu.com/business/Industry/real-money-gaming-firms-wind-down-operations/article69965196.ece
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Introduction
Online Gaming has gained popularity over the past few years, attracting young players worldwide and global concerns. In response to the growing fame of this industry, the Indian government has recently announced introducing a set of regulations to address various concerns and ensure a safer and more regulated online gaming environment. In this blog post, we will explore the critical aspects of these regulations and their impact on the gaming industry.
Why are Regulations needed?
Recently some games faced a ban in India – games that involve betting, games that can be harmful to the user, and games that involve a factor of addiction. Furthermore, with rising popularity, With the exponential rise of online gaming platforms in India, extensive laws to safeguard players and ensure fair gameplay needs to be implemented. Players’ protection is one of the critical factors addressing the issues which involve online addiction, underage involvement, fraud, and data privacy has become critical for the well-being of Indian gamers.
Regulatory Ambiguity: The previous legislative structure, such as the outmoded Public Gambling Act of 1867, required an update to fit the digital gambling age fully.
Outline of the New Regulations
Implementing new regulations for online gaming in India represents the government’s commitment to addressing different issues and ensuring a safer and more regulated gaming sector. Let’s have a look at these rules in detail:
National-Level Standards: The Indian government is currently working on creating national-level standards to standardise online gaming practices across all states. These rules attempt to create a uniform platform for both operators and participants. The government has also made an announcement to set SRO within 90 days to regulate online gaming.
Licencing and Compliance: To legally operate in the Indian market, online gaming firms must secure licences. The operator’s financial soundness, security measures, and adherence to responsible gaming practices will be scrutinised throughout the licencing process. Operators will need to comply with the regulations in order to maintain operations.
Measures to Promote Ethical Gaming: The new regulations emphasise player protection and ethical gaming practices. This includes steps like age verification to prevent underage involvement, self-exclusion choices for gamers who want to limit their gaming activities, and adopting tools like session limits and reality checks to promote responsible gaming.
Data Privacy: Recognising the importance of data privacy, the laws are intended to contain protections for protecting user data. To safeguard sensitive player information from unauthorised access or exploitation, online gambling operators must comply with data protection regulations and deploy strong security measures.
Restrictions on Advertising and Marketing: The legislation may limit the advertising and marketing of online gaming platforms. The emphasis will be on eliminating aggressive marketing tactics that target vulnerable people, such as kids. Stricter standards for ad content and placement may be implemented.
Anti-Fraud and Anti-Money Laundering Measures: To combat criminal activity within the gaming ecosystem, the new legislation will almost certainly force online gambling companies to employ anti-fraud and anti-money laundering measures. Operators may need to set up mechanisms to detect fraud, report suspicious activity, and work with law enforcement.
Consumer Grievance Redressal: The legislation may emphasise the construction of efficient channels for resolving consumer complaints. Players should be able to report difficulties, seek resolution, and offer feedback on their play experiences through channels. The objective is to create a transparent and accountable conflict resolution mechanism.
Impact on Online Gaming Ecosystem
Adopting new laws for online gambling in India will likely have several consequences for the gaming industry. Let us look at some of these consequences:
Increased Player Trust: Implementing restrictions will increase player confidence in online gaming platforms. Establishing clear rules and procedures and steps to safeguard participants’ interests will develop a sense of trust and transparency. This can lead to increased participation and engagement in the gaming community.
Industry Consolidation: Stricter restrictions may result in industry consolidation. Compliance with the new legislation would need resources and investments, which might favour more prominent and more established gambling firms. Smaller and more non-compliant operators may find it challenging to fulfil regulatory standards, resulting in a more consolidated gaming sector.
Technological Progress: The requirement to comply with rules could lead to technological advancements in the online gambling sector. Operators may invest in modern identity verification systems, fraud detection methods, and responsible gaming solutions to satisfy their regulatory requirements. This can result in technological breakthroughs that improve gamers’ overall gaming experience.
Foreign Investment and Collaboration: Clear laws might entice overseas investors to enter the Indian gaming business. The regulated environment may appeal to international gambling enterprises looking to enter or extend their presence in India. Collaborations between Indian and foreign gaming firms may also expand, resulting in the sharing of experience, resources, and the production of high-quality gaming products.
Legal Clarity: Implementing particular laws would give online gambling operators and users clearer legal standards. This transparency can eliminate ambiguity and possible legal issues, allowing stakeholders to navigate the gaming ecosystem with better confidence and knowledge.
Contribution to the Indian Economy: A well-regulated online gaming business has the potential to contribute to the Indian economy. It has the potential to create jobs, attract investment, and produce tax money for the government. The economic effect of the gaming ecosystem is expected to increase as it grows under the new restrictions.
Challenges and Future Approach
One of the toughest challenges will be the efficient implementation and enforcement of the new regulations. Consistency in applying the legislation across multiple jurisdictions and guaranteeing compliance by all operators would necessitate comprehensive monitoring and regulatory measures. Developing suitable enforcement organisations and transparent standards for reporting and dealing with noncompliance will be critical. Besides this, online gaming is open to more than area-specific and many gaming platforms and operates internationally. Ensuring cross-border operations is a big challenge in addressing jurisdictional challenges will be complex. Collaborative efforts between nations can regulate cross-border online gaming. There may be increased collaboration between Indian and foreign gaming firms, resulting in the exchange of information, skills, and resources. This partnership can help the Indian gaming sector flourish while attracting foreign players and investments.
Esports Development: Esports have grown in popularity worldwide, and India is no exception. The Indian esports business has the potential to thrive with proper regulation and support, drawing both players and viewers. Esports-specific factors like player contracts, tournament integrity, and licencing requirements may be addressed in the regulations.
Conclusion
Despite obstacles, India’s new online gambling legislation can potentially establish a safer and more regulated gaming sector. the future depends on successful implementation, adjusting to a shifting landscape, finding the correct balance between regulation and innovation, and promoting ethical gaming practices. The Indian online gaming business can develop sustainably with the appropriate strategy, benefiting gamers and the broader economy.
Introduction
Indian Cybercrime Coordination Centre (I4C) was established by the Ministry of Home Affairs (MHA) to provide a framework and eco-system for law enforcement agencies (LEAs) to deal with cybercrime in a coordinated and comprehensive manner. The Indian Ministry of Home Affairs approved a scheme for the establishment of the Indian Cyber Crime Coordination Centre (I4C) in October2018, which was inaugurated by Home Minister Amit Shah in January 2020. I4C is envisaged to act as the nodal point to curb Cybercrime in the country. Recently, on 13th March2024, the Centre designated the Indian Cyber Crime Coordination Centre (I4C) as an agency of the Ministry of Home Affairs (MHA) to perform the functions under the Information Technology Act, 2000, to inform about unlawful cyber activities.
The gazetted notification dated 13th March 2024 read as follows:
“In exercise of the powers conferred by clause (b) of sub-section (3) of section 79 of the Information Technology Act 2000, Central Government being the appropriate government hereby designate the Indian Cybercrime Coordination Centre (I4C), to be the agency of the Ministry of Home Affairs to perform the functions under clause (b) of sub-section (3) of section79 of Information Technology Act, 2000 and to notify the instances of information, data or communication link residing in or connected to a computer resource controlled by the intermediary being used to commit the unlawful act.”
Impact
Now, the Indian Cyber Crime Coordination Centre (I4C) is empowered to issue direct takedown orders under 79(b)(3) of the IT Act, 2000. Any information, data or communication link residing in or connected to a computer resource controlled by any intermediary being used to commit unlawful acts can be notified by the I4C to the intermediary. If an intermediary fails to expeditiously remove or disable access to a material after being notified, it will no longer be eligible for protection under Section 79 of the IT Act, 2000.
Safe Harbour Provision
Section79 of the IT Act also serves as a safe harbour provision for the Intermediaries. The safe harbour provision under Section 79 of the IT Act states that "an intermediary shall not be liable for any third-party information, data, or communication link made available or hosted by him". However, it is notable that this legal immunity cannot be granted if the intermediary "fails to expeditiously" take down a post or remove a particular content after the government or its agencies flag that the information is being used to commit something unlawful. Furthermore, Intermediaries are also obliged to perform due diligence on their platforms and comply with the rules & regulations and maintain and promote a safe digital environment on the respective platforms.
Under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, The government has also mandated that a ‘significant social media intermediary’ must appoint a Chief Compliance Officer (CCO), Resident Grievance Officer (RGO), and Nodal Contact Person and publish periodic compliance report every month mentioning the details of complaints received and action taken thereon.
I4C's Role in Safeguarding Cyberspace
The Indian Cyber Crime Coordination Centre (I4C) is actively working towards initiatives to combat the emerging threats in cyberspace. I4C is one of the crucial extensions of the Ministry of Home Affairs, Government of India, working extensively to combat cyber crimes and ensure the overall safety of netizens. The ‘National Cyber Crime Reporting Portal’ equipped with a 24x7 helpline number 1930, is one of the key component of the I4C.
Components Of The I4C
- National Cyber Crime Threat Analytics Unit
- National Cyber Crime Reporting Portal
- National Cyber Crime Training Centre
- Cyber Crime Ecosystem Management Unit
- National Cyber Crime Research and Innovation Centre
- National Cyber Crime Forensic Laboratory Ecosystem
- Platform for Joint Cyber Crime Investigation Team.
Conclusion
I4C, through its initiatives and collaborative efforts, plays a pivotal role in safeguarding cyberspace and ensuring the safety of netizens. I4C reinforces India's commitment to combatting cybercrime and promoting a secure digital environment. The recent development by designating the I4C as an agency to notify the instances of unlawful activities in cyberspace serves as a significant step to counter cybercrime and promote an ethical and safe digital environment for netizens.
References
- https://www.deccanherald.com/india/centre-designates-i4c-as-agency-of-mha-to-notify-unlawful-activities-in-cyber-world-2936976
- https://www.business-standard.com/india-news/home-ministry-authorises-i4c-to-issue-takedown-notices-under-it-act-124031500844_1.html
- https://www.hindustantimes.com/india-news/it-ministry-empowers-i4c-to-notify-instances-of-cybercrime-101710443217873.html
- https://i4c.mha.gov.in/about.aspx#:~:text=Objectives%20of%20I4C,identifying%20Cybercrime%20trends%20and%20patterns
Introduction
The Union Minister of Information and Broadcasting Ashwini Vaishnaw addressed the Press Council of India on the occasion of National Press Day regarding emergent concerns in the digital media and technology landscape. Union Minister of Information and Broadcasting Ashwini Vaishnaw has identified four major challenges facing news media in India, including fake news, algorithmic bias, artificial intelligence, and fair compensation. He emphasized the need for greater accountability and fairness from Big Tech to combat misinformation and protect democracy. Vaishnaw argued that platforms do not verify information posted online, leading to the spread of false and misleading information. He called on online platforms and Big Tech to combat misinformation and protect democracy.
Key Concerns Highlighted by Union Minister Ashwini Vaishnaw
- Misinformation: Due to India's unique sensitivities, digital platforms should adopt country-specific responsibilities and metrics. The Minister also questioned the safe harbour principle, which shields platforms from liability for user-generated content.
- Algorithmic Biases: The prioritisation of viral content, which is often divisive, by social media algorithms can have serious implications on societal peace.
- Impact of AI on intellectual Property: The training of AI on pre-existing datasets presents the ethical challenge of robbing original creators of their rights to their intellectual property
- Fair compensation: Traditional news media is increasingly facing financial strain since news consumption is shifting rapidly to social media platforms, creating uneven compensation dynamics.
Cyberpeace Insights
- Misinformation: Marked by routine upheavals and moral panics, Indian society is vulnerable to the severe impacts of fake news, including mob violence, political propaganda, health misinformation and more. Inspired by the EU's Digital Services Act, 2022, and other related legislation that addresses hate speech and misinformation, the Indian Minister has called for revisiting the safe harbour protection under Section 79 of the IT Act, 2000. However, any legislation on misinformation must strike a balance between protecting the fundamental rights to freedom of speech, and privacy while safeguarding citizens from its harmful effects.
- Algorithmic Biases: Social media algorithms are designed to boost user engagement since this increases advertisement revenue. This leads to the creation of filter bubbles- exposure to personalized information online and echo chambers interaction with other users with the same opinions that align with their worldview. These phenomena induce radicalization of views, increase intolerance fuel polarization in public discourse, and trigger the spread of more misinformation. Tackling this requires algorithmic design changes such as disincentivizing sensationalism, content labelling, funding fact-checking networks, etc. to improve transparency.
- Impact of AI on Intellectual Property: AI models are trained on data that may contain copyrighted material. It can lead to a loss of revenue for primary content creators, while tech companies owning AI models may financially benefit disproportionately by re-rendering their original works. Large-scale uptake of AI models will significantly impact fields such as advertising, journalism, entertainment, etc by disrupting their market. Managing this requires a push for Ethical AI regulations and the protection of original content creators.
Conclusion: Charting a Balanced Path
The socio-cultural and economic fabric of the Indian subcontinent is not only distinct from the rest of the world but has cross-cutting internal diversities, too. Its digital landscape stands at a crossroads as rapid global technological advancements present increasing opportunities and challenges. In light of growing incidents of misinformation on social media platforms, it is also crucial that regulators consider framing rules that encourage and mandate content verification mechanisms for online platforms, incentivizing them to adopt advanced AI-driven fact-checking tools and other relevant measures. Additionally, establishing public-private partnerships to monitor misinformation trends is crucial to rapidly debunking viral falsehoods. However ethical concerns and user privacy should be taken into consideration while taking such steps. Addressing misinformation requires a collaborative approach that balances platform accountability, technological innovation, and the protection of democratic values.
Sources
- https://www.indiatoday.in/india/story/news-media-4-challenges-ashwini-vaishnaw-national-press-day-speech-big-tech-fake-news-algorithm-ai-2634737-2024-11-17
- https://ec.europa.eu/commission/presscorner/detail/en/ip_24_881
- https://www.legaldive.com/news/digital-services-act-dsa-eu-misinformation-law-propaganda-compliance-facebook-gdpr/691657/
- https://www.fondationdescartes.org/en/2020/07/filter-bubbles-and-echo-chambers/
- https://www.google.com/searchq=News+Media+Bargaining+Code&oq=News+Media+Bargaining+Code&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQABiABDIHCAIQABiABDIHCAMQABiABDIHCAQQABiABDIHCAUQABiABDIICAYQABgWGB4yCAgHEAAYFhgeMggICBAAGBYYHjIICAkQABgWGB7SAQcyMjVqMGo3qAIIsAIB&sourceid=chrome&ie=UTF-8
