The Promotion and Regulation of Gaming Act, 2025: Jackpot of Progress or a Roll of the Regulatory Dice

Shubhangi Shifa
Shubhangi Shifa
Assistant Manager, Media & Design, CyberPeace
PUBLISHED ON
Sep 3, 2025
10

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: 

  1. 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
  2. https://m.economictimes.com/news/india/govt-estimates-45-cr-people-lose-about-rs-20000-cr-annually-from-real-money-gaming/articleshow/123408237.cms
  3. https://www.cyberpeace.org/resources/blogs/promotion-and-regulation-of-online-gaming-bill-2025-gets-green-flag-from-both-houses-of-parliament
  4. https://www.thehindu.com/business/Industry/real-money-gaming-firms-wind-down-operations/article69965196.ece

PUBLISHED ON
Sep 3, 2025
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