Online Gaming Bill, 2025, marks a significant legislative step in addressing the rapid growth of India’s online gaming sector. Under the Bill, “e-sport” is defined as an online game played as part of multi-sport events, involving organised competitive competitions between individuals or teams.
The Centre has introduced the Promotion and Regulation of Online Gaming Bill, 2025, in Lok Sabha on Wednesday, despite Opposition members continuing to raise slogans and display placards. Under the Bill, “e-sport” is defined as an online game played as part of multi-sport events, involving organised competitive competitions between individuals or teams. Moreover, the Bill states that the Central Government will take steps to promote esports, including setting guidelines for events, establishing training and research institutions, introducing incentive and awareness programs, coordinating with State Governments and sports federations, and implementing other measures to support the sector’s growth.
Online Gaming Bill 2025: What is the objective?
The Bill aims to promote and regulate esports, educational, and social games, while completely prohibiting the offering, operation, facilitation, advertisement, promotion, and participation in online money games.
The Bill prohibits online money gaming or its ads and prescribes imprisonment or fine, or both, for those offering or advertising them. It seeks to differentiate such games from eSports or online social games. The Bill also calls for the promotion of eSports and online social games.
Worried Gaming industry seeks urgent meeting with govt over the bill
Leading gaming industry representatives have requested an urgent meeting with the government, saying that the Bill, if passed, “will cause serious harm to Indian users and citizens”. In the letter, jointly written by the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS), the industry leaders said they “truly believe that the online skill gaming industry can be one of the cornerstones of Prime Minister’s vision for a $1 trillion digital economy”.
According to gaming federations, online skill gaming is a sunrise sector with over Rs 2 lakh crore enterprise valuation, over Rs 31,000 crore in revenue, over Rs 20,000 crore in annual direct and indirect taxes, and is set to grow by 20 per cent CAGR to reach even greater heights and double by 2028. The total number of Indian online gamers grew from 36 crore in 2020 to over 50 crore in 2024. They said that “a blanket prohibition would strike a death knell for this legitimate, job-creating industry, and would cause serious harm to Indian users and citizens”.
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“By shutting down regulated and responsible Indian platforms, it will drive crores of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without any safeguards, consumer protections, or taxation,” the letter said.
The proposed ban would not only kill these opportunities but also deter global investment and investor sentiment, destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India’s position as a digital innovator, it added.
Online Gaming Bill 2025 impact: What experts say?
Experts believe the Promotion and Regulation of Online Gaming Bill, 2025, marks a significant legislative step in addressing the rapid growth of India’s online gaming sector. Mr. Dinkar Sharma, Company Secretary and Partner, Jotwani Associates, told DNA India, “From a consumer protection standpoint, this provides much-needed clarity and ensures that online gamers, particularly younger users, are shielded from harmful practices.”
From an industry perspective, Sharma emphasised that Bill offers both opportunities and challenges. “Legitimate gaming companies can benefit from legal recognition, better investor confidence, and the ability to operate transparently across state borders. On the other hand, compliance with new licensing and regulatory frameworks may impose higher costs, particularly on smaller startups in the sector. This dual impact underscores the importance of balancing innovation and entrepreneurship with responsible governance and consumer safety,” he said.
Sharma also highlighted how the Bill draws a sharper line between “gaming” and “gambling.” “The Bill reduces litigation risk for operators and provides a clearer compliance roadmap. At the same time, it empowers the government with oversight powers to suspend or cancel registrations in cases of violations, ensuring that consumer interests are not compromised,” he said. However, he notes that questions remain regarding the Bill’s implementation, particularly how it will harmonise with state laws, how enforcement agencies will monitor compliance, and whether a dedicated regulator will be established for the sector. “These practical aspects will determine whether the Bill achieves its intended balance of fostering innovation while protecting consumers,” he concluded.
(With inputs from IANS)
