New regulations for online gaming in India are slated to take effect on October 1, 2025. Union Information and Technology Minister Ashwini Vaishnaw has stated that the government is committed to a consultative approach with the industry, emphasizing that multiple discussions have already taken place with online gaming companies and stakeholders. The government has also consulted with banks and other relevant parties.
Vaishnaw highlighted the government's "very consultative" approach and indicated that another round of discussions with the industry will occur before the implementation. He noted that the rules have been finalized after engaging with practically every stakeholder. While the government is currently targeting October 1 for the rollout, Vaishnaw added that they would consider a more consultative approach and allow more time if needed.
The Promotion and Regulation of Online Gaming Act, 2025
The President of India gave assent to The Promotion and Regulation of Online Gaming Bill, 2025, which was passed by Parliament in August. The legislation aims to encourage e-sports and online social games, while simultaneously prohibiting harmful online money gaming services, their advertisements, and related financial transactions.
The Act seeks to establish a comprehensive legal framework for licensing, classifying, and regulating online gaming in India. It intends to promote online gaming as a growing industry, ensure consumer protection, encourage responsible gaming practices, and protect against illegal betting and gambling. The bill recognizes e-sports as a competitive sport and aims to promote its development.
Key Provisions and Objectives
Industry Impact and Concerns
The implementation of the new online gaming regulations has already had repercussions for the industry. Gameskraft, an online gaming firm based in Bengaluru, recently announced the layoff of 120 employees due to the "current regulatory landscape". Industry insiders have warned that the ban on online money games could cripple the sector, potentially leading to significant job losses and company closures.
One concern flagged by the industry is how to return money left in user accounts. The government has reportedly held discussions with banks to find a solution.
Government's Perspective
The government has emphasized the need to protect citizens from the potential dangers of online gaming, including addiction, financial fraud, money laundering, and cybercrime. At the same time, it recognizes the online gaming sector as a dynamic part of the digital economy with significant opportunities for innovation and employment. The Act reflects the government's commitment to safeguarding families while guiding the digital economy towards safe and constructive growth.
Looking Ahead
The Promotion and Regulation of Online Gaming Act, 2025, represents a significant step towards regulating the online gaming industry in India. While the industry has expressed concerns about the potential impact of the new rules, the government has stressed its commitment to a consultative approach and has indicated a willingness to address industry concerns. The effectiveness of the new regulatory framework will depend on its implementation and how it adapts to the evolving nature of the online gaming landscape.
