India’s online gaming sector is set for a significant transformation as new regulations, aimed at curbing real-money gaming and promoting esports, officially come into effect on October 1. The government has emphasized a consultative approach with industry stakeholders throughout the process.
Key Takeaways
- A nationwide ban on online games played for stakes will be implemented.
- Penalties will target providers, advertisers, and promoters, not players.
- The new law aims to provide legal backing and support for esports.
New Regulations Take Effect
Union Minister Ashwini Vaishnaw announced that the new rules for online gaming will be implemented from October 1. The legislation, The Promotion and Regulation of Online Gaming Bill, 2025, received presidential assent on August 22 after being passed by Parliament. This marks a substantial shift, banning all forms of online real-money gaming, irrespective of whether the game is based on skill or chance.
Consultative Approach and Industry Impact
The government has engaged in multiple rounds of discussions with online gaming companies, banks, and other relevant stakeholders. Minister Vaishnaw highlighted the "very consultative" nature of the process, with plans for at least one more round of talks before the official rollout. While the primary target for implementation is October 1, the government has indicated a willingness to consider extensions if the industry requires more time for adaptation.
Penalties and Player Protection
Under the new Act, offering or participating in real-money online games will be treated as a cognizable and non-bailable criminal offense. However, the focus of enforcement will be on the providers, advertisers, and those funding such games, rather than the players themselves. The law also includes provisions to block banking support, advertisements, and promotions linked to "online money games."
Promoting Esports and AI
Beyond regulating real-money gaming, the legislation aims to provide legal backing and support for esports and social online games. In parallel, the government is also advancing its agenda in artificial intelligence, with initiatives like the IndiaAI Mission aiming to build sovereign AI capabilities through the establishment of data labs and the development of indigenous large language models.
