President Droupadi Murmu has given her assent to the Promotion and Regulation of Online Gaming Bill, 2025, with the aim of boosting e-sports and overseeing the online gaming industry. The legislation prohibits money-based games and imposes strict penalties on those involved in such activities. The government’s primary focus is on curbing addiction and financial risks associated with betting, while also providing legal support for e-sports.
The bill, which was approved by President Murmu, signifies a significant step towards regulating the online gaming sector in India. The Ministry of Electronics and Information Technology (MeitY) confirmed the assent, highlighting the importance of promoting e-sports and eliminating money gaming activities. The implementation of the bill will involve issuing notifications and drafting rules to ensure effective enforcement.
MeitY Secretary S Krishnan emphasized the dual purpose of the legislation, which is to encourage e-sports participation and social gaming while cracking down on money-based games and associated financial transactions. The law targets service providers, advertisers, promoters, and financiers involved in such activities, with severe penalties for non-compliance, including imprisonment and hefty fines.
Violations of the law could result in imprisonment of up to three years and fines of up to Rs 1 crore for individuals facilitating money games. Repeat offenders may face even harsher penalties, including imprisonment of up to five years and fines of up to Rs 2 crore. The law enforcement agencies have been granted powers to take necessary actions to uphold the regulations.
While acknowledging potential revenue losses due to the new law, estimated at Rs 15,000-20,000 crore annually in GST collections, Krishnan stressed that the government’s priority lies in safeguarding citizens from the adverse effects of gambling. The bill has received approval from the Finance Ministry, indicating a unified approach towards addressing social concerns over financial considerations.
The government’s decision to introduce this legislation stems from the need to protect individuals from addiction, financial ruin, and associated risks like money laundering. The tightening of regulations is also driven by concerns related to money gaming’s links to illicit activities such as terror financing and money laundering, necessitating stricter oversight and control.
Moreover, the bill marks a significant milestone in providing legal recognition and support for e-sports in India. The Ministry of Youth Affairs and Sports will establish a dedicated framework to promote e-sports, elevating its status and fostering its growth in the country. The legislation also aims to encourage online social games within a regulated environment.
In conclusion, the Promotion and Regulation of Online Gaming Bill, 2025, represents a comprehensive approach towards enhancing the gaming landscape in India. By prioritizing the promotion of e-sports, regulating the online gaming sector, and curbing money-based games, the government is taking proactive steps to address key issues affecting the industry and safeguard the interests of players and stakeholders.
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