Promotion and Regulation of Online Gaming Act 2025 Rau’s IAS
India’s gaming industry is booming—thanks to the rapid rise in smartphone users, affordable internet, and a young, digital-savvy population. From casual mobile games to competitive e-sports platforms and real-money fantasy leagues, the ecosystem is vibrant and constantly evolving. C) “Online social games” and “e-sports” are excluded from the scope of prohibition, but are brought under a registration and compliance framework, reflecting regulatory deference to entertainment, education, and skill-based activities. Where the income of a resident includes income by way of winnings from online games of any sort, including in the nature of betting, gambling, etc., such income would be liable to tax in the hands of such taxpayer, at 30% (plus applicable surcharge and cess).
UPSC Civil Services Examination, Previous Year’s Question (PYQs)
Deficiency in services is a subjective concept as no fixed criteria for such determination can be laid down. In India, responsible gaming means encouraging safe gambling habits, protecting players, avoiding addiction, and informing players about the dangers through tools like age verification and self-exclusion options. Since each Indian state has the authority to control gambling within its borders, there are considerable differences in the legislation governing gaming across them. Both federal and state regulations influence the gambling industry in India, occasionally causing conflict or misunderstanding. Legally sound foundations aren’t just “nice to have”—they’re essential for sustainable growth and success in India’s increasingly regulated and dynamic gaming market. Real Money Gaming (RMG) accounts for more than 80% of India’s online gaming revenues.
The following states and union territories are the only exceptions to this general rule as far as the State Gaming Laws are concerned. The draft rules also extend legal protection to officers or authorised persons aviator game conducting searches and seizures under the Act, shielding them from lawsuits or legal proceedings arising from such actions. The Authority is required to register an online social game or an e-sport within a reasonable time not exceeding 90 days from the date of first application (subject to limited exclusions for e-sport recognition timelines). Practical enforcement—particularly against offshore platforms targeting Indian players remains uncertain. Lessons may be drawn from cases involving foreign betting sites, where Indian regulators resorted to blocking orders under Section 69A of the IT Act.
For this, the OGI first needs to become a member of any SRB registered by the MeitY under the Online Gaming Rules, adhere to the due diligence and other obligations under the Online Gaming Rules, and submit its game format to the relevant committee of the SRB. The process that the SRB will follow to assess and verify the game format will depend on the charter and governing documents of the SRB. At the time of writing, no SRB has been registered by the MeitY and hence there is no information available on the exact process of verification. The content in the corresponding cell applies except the point on Nagaland, which would only apply to online games. In the absence of monetary or equivalent stakes, most State Gaming Laws are unlikely to be triggered.
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Consumer protection measures mandate age verification, self-exclusion, and grievance redressal mechanisms while prohibiting targeting children in advertisements. The Act also establishes an Online Gaming Appellate Tribunal, with appeals permitted directly to the Supreme Court. The Promotion and Regulation of Online Gaming Act, 2025 (“Gaming Act”), received the assent of the President on August 22, 20251, after being passed by both Houses of the Indian Parliament.
- Please refer to our response to question 3.1 above – all of the laws mentioned above would be applicable, with the IT Act 2000 being the key legislation for online media.
- Section 7 bars banks, financial institutions, or any other person from facilitating financial transactions linked to such services.
- In Macau, despite being China’s designated gambling hub with a massive land-based casino industry generating billions in revenue, online gambling remains strictly prohibited under the new Gaming Law that came into effect in 2023.
Regulations for Online Gaming Sector in India
The Indian Act aligns closer with the UK model, emphasising licensing, consumer protection, and AML compliance. Most Indian laws which regulate gaming in India were enacted before the advent of virtual / online gaming. However, in practice, the application of the general provisions in relation to prohibition of games of chance have been extended to online gaming as well. There is ongoing discussion regarding the legality of many online games, as some of them mix skill and chance. Despite the need for further clarification, online gaming laws in India are essential in differentiating between these two areas. A major obstacle in gaming law in India is figuring out the difference between internet gaming and online gambling.
The French model demonstrates how jurisdictions can permit certain forms of online gambling while prohibiting others based on detailed risk assessments and policy priorities. The constitutional challenges raise fundamental questions about the balance between state power and individual rights in India’s federal democracy. Petitioners argue that a complete ban on an entire sector where many games demonstrably require skill violates Article 19(1)(g)’s guarantee of the right to carry on legitimate business, exceeding permissible “reasonable restrictions” under the Constitution. They contend the law is “ultra vires” and vague under Articles 14 and 21, failing to delineate between skill-based activity and chance gambling while lacking adequate procedural safeguards. The Indian Parliament passes the Online Gaming Bill of 2025 that bans all real-money online games with the objective of curbing addiction and financial harm while promoting e-sports and social gaming.