India tightens digital gaming rules to curb online money platforms

The government has taken a vital role in creating a safe and responsible online gaming system in the country. The Promotion and Regulation of Online Gaming Act 2025 has been introduced as the main legislative framework for this purpose.

The new law prohibits online money games while it enables e-sports and social online games to develop through its innovation support.

The government intends to achieve digital gaming growth through this initiative, which will establish permanent regulations that protect users from financial dangers and unsafe gaming methods.

Add Zee Business as a Preferred Source

Complete ban on online money games

The new law prohibits all online money gaming activities as it bans all types of online money games. This restriction applies to all games that use chance, skill or both to operate when actual money is at stake. The law prohibits all platforms from promoting, advertising or providing any form of support for these games.

Financial institutions and payment service providers are not allowed to process transactions related to these games. The authorities now possess the ability to shut down websites and applications that provide illegal gaming services, according to the Information Technology Act.

Strict penalties for violations

The law emphasises severe penalties that apply to both people and businesses who violate its regulations. Offering online money games or helping in related financial transactions can lead to imprisonment of up to three years, which includes a maximum fine of Rs 1 crore and the possibility of serving both penalties.

The first offence will result in three years minimum jail time, which can reach five years, while the fines will range between Rs 1 crore and Rs 2 crore.

The act of promoting forbidden games will lead to a prison sentence that lasts up to two years or a financial penalty that reaches Rs 50 lakh. The second offence will lead to more severe penalties, which include extended prison time and increased financial obligations.

Promotion of e-sports and social gaming

The law prohibits money-based gaming but creates safer paths to digital entertainment through its support of skill-based digital entertainment. The system should acknowledge and support e-sports competitions together with social games that do not use real money for betting.

The Act will establish an online game registration system together with a user complaint resolution system. These steps aim to build trust among players and ensure fair practices in the gaming industry.

Creation of online gaming authority

The newly established Online Gaming Authority will serve as a central authority which will regulate online gaming activities. The institution will perform game classification and registration functions while determining whether games qualify as money games.

The authority will establish responsible gaming guidelines while addressing public complaints. The government believes that a central regulator will help in better coordination, stronger monitoring and faster policy implementation.

The newly established Online Gaming Authority will function as a national body that oversees online gaming activities. The institution will perform game classification and registration functions while determining whether games qualify as money games.

The authority will establish responsible gaming guidelines while addressing public complaints. The government believes that a central regulator will help in better coordination, stronger monitoring and faster policy implementation.

Public consultation on draft rules

The Ministry of Electronics and Information Technology published draft regulations for public input on October 2025 to support their law implementation efforts. The government invited citizens and industry professionals, together with experts to provide their feedback.

The government takes this action to create digital policies through its inclusive approach to policy development. The Minister of State for Information and Broadcasting and Parliamentary Affairs conveyed the law information through his written response in the Lok Sabha.

The new gaming law establishes a framework that will protect consumers while supporting technological development to make India a trusted participant in the international online gaming market.