Introduction
The Promotion and Regulation of Online Gaming Bill, 2025 (hereinafter referred to "Proposed Bill"), introduced in the Lok Sabha by Union Minister Ashwini Vaishnav aims to prohibit online money games while simultaneously providing a framework for the promotion and regulation of e-sports, educational games, and social games. The proposed legislation seeks to establish a uniform, national-level framework.
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Key Provisions of the Online Gaming Bill, 2025
- The most significant aspect of this proposed legislation is considering a blanket ban on "online money games". As per Section 2(g) of the Proposed Bill, an "online money game" as an online game, irrespective of whether it is based on skill, chance or both, where a user pays fees, deposits money, or uses other stakes in the expectation of winning monetary or other enrichment, but does not include e-sports. This prohibition is considered as "prudent and practical" in the interest of the general public.
To enforce this ban, the Proposed Bill, under Chapter III, Section 5 and 6, expressly provides that no person shall offer any, aid, abet, induce, indulge, engage in offering online money gaming services nor shall involve in any advertisement which directly or indirectly promotes any person to play any online money game in any media, in whatsoever capacity.
- The Proposed Bill also prohibits banks, financial institutions, and other entities from facilitating transactions for online gaming services. Offences related to offering or facilitating these games would be classified as "cognizable and non-bailable" as mentioned under Section 10 of the said Bill.
- The Government, under Chapter V, Section 9 has proposed penalties for offering an online money gaming service could include imprisonment for up to three years or a fine of up to INR 1 Crore, or both.
- The Proposed Bill aims to support other forms of digital play like E-sports, Social Gaming and Educational Gaming. E-Sports are defined as online games where the outcome is determined solely by the player's skills, such as physical dexterity and strategic thinking, and which do not involve betting or wagering.
- The Central Government, through this Proposed Bill, aims to take steps to promote E-sports, which includes establishments of training academics and research centres, and coordinating with the sports federation. Similarly, the said Bill seeks to recognize and facilitate the development of "online social games" and "education games" for recreation and educational purposes.
- As per Section 2(i) of the Proposed Bill, online social games are defined as games that do not involve staking money and are offered for entertainment or skill-development purposes.
- Section 19 of the Proposed Bill provides powers to the Central Government wherein the same is authorized to create rules to implement the provisions mentioned under this Bill. Such rules may be provided for promoting E-sports, encouraging online social gaming, and establishing the process for recognizing, categorizing, and registering online games.
- They may address the powers and functions of the Authority established under Chapter IV Section 8 which will oversee the gaming sector in India. The said Authority shall be chaired by a Chairperson and other members as prescribed.
- Under Section 14, in case of failure to comply with the provisions of Section 5, 6 and 7, any information generated, transmitted, received or hosted in any computer resource in relation to online money gaming service shall be liable to be blocked for access by the public. This action can be taken despite other provisions in Section 69A of the Information Technology Act, 2000. The blocking will be carried out in the manner specified by the Information Technology Act, 2000.
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