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Legal Chronicle

November 2025

The Promotion and Regulation of Online Gaming Act, 2025 In Effect Since 1st October 2025

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The Promotion and Regulation of Online Gaming Act, 2025: In Effect Since 1st October 2025

Dear Reader,

The Legal Department at UJA is delighted to impart certain legal knowledge as construed under the Legal Chronicle to keep the readers aware of the recent updates and developments that revolve around various aspects of the law. Our goal is to enable our readers to develop a sense of familiarity with the complexities of Indian as well as international law.

In this edition of Legal Chronicle, we present a comprehensive overview of the regulatory framework governing online gaming in India under the Promotion and Regulation of Online Gaming Act, 2025, a legislation of critical importance for gaming operators, financial intermediaries and other stakeholders. With the growing popularity of online gaming and the associated risks of illegal betting and money games, it has become essential for businesses and platforms to understand the legal obligations imposed under the Act. This article examines the key provisions, the role of regulatory authorities, penalties for non-compliance and the broader impact on the gaming industry. It further explores challenges, considerations and practical steps to ensure compliance while fostering responsible online gaming in India. 

We hope that this edition creates a sense of enthusiasm for our readers and successfully delivers the plethora of legal knowledge as intended. In case you have any feedback or need us to include any information to make this issue more informative, please feel free to write to us at legal@uja.in.

Introduction

The online gaming industry in India has witnessed rapid growth over the past decade, driven by widespread internet penetration, affordable smartphones and increasing digital literacy. India has emerged as one of the fastest-growing markets globally, encompassing mobile games, browser-based games, e-sports, fantasy sports and skill-based games. The large youth population, eager for digital entertainment, has further fueled this expansion. Additionally, platforms offering skill-based and fantasy sports games have attracted significant investment, highlighting the distinction between games of skill and games of chance within India’s legal framework.

Despite its growth, the sector has historically faced fragmented regulation, with varying approaches across states, particularly concerning real-money gaming. This legal ambiguity, combined with the economic potential of the industry and the need to protect consumers, underscored the necessity for a comprehensive national framework, culminating in the enactment of the Promotion and Regulation of Online Gaming Act, 2025 which is now effective from 1st October 2025.

Why India Needs a Regulatory Framework for Online Gaming

The government’s decision to enact the Promotion and Regulation of Online Gaming Act, 2025 is driven by growing concerns over the social and economic impact of Real Money Games (RMGs). Reports indicate that Indians are collectively losing nearly ₹15,000 crore annually to these platforms. Beyond financial losses, the World Health Organization (WHO) has highlighted the link between RMGs and compulsive behavior, psychological distress and disruption of family life. These alarming trends brought ahead the urgent need for a regulatory framework to protect citizens and promote responsible participation in online gaming.

Cracking Down on Online Money Games: Key Provisions under the 2025 Act

  • Complete Ban on Online Money Gaming
    The Act strictly prohibits anyone from offering, supporting or participating in online money games or associated services. This ensures that no individual or organization can profit from or facilitate such activities in any form.
  • Advertising Restrictions
    Any attempt to advertise or promote online money games, whether through traditional media or digital platforms, is expressly forbidden. This includes content that even indirectly encourages users to participate in these games.
  • Blocking Financial Transactions
    Banks, payment providers and financial institutions are barred from processing or authorizing payments for online money gaming. Essentially, any attempt to fund or transact with these services is not allowed under the law.

Authority and Governance in India’s Online Gaming Sector

a. Establishment of the Authority

  • The Central Government may, through notification, constitute an Authority comprising a Chairperson and other members or designate an existing authority or agency to assist in implementing the provisions of the Act.

b. Powers of the Authority

  • The Authority (or designated agency) may be empowered to:
  • Assess Online Games: Determine, either on receiving an application or on its own initiative, whether a particular online game qualifies as an online money game, following any inquiry it deems necessary.
  • Recognise and Register Games: Categorise, recognise and register online games as per prescribed procedures.
  • Additional Powers: Perform any other functions or exercise powers as may be prescribed under the law.

c. Compliance Obligations

  • All entities offering, organising, or facilitating online games must comply with directions, orders, guidelines or codes of practice issued by the Central Government or the Authority/agency in the discharge of their duties.

d. Framework and Governance of the Authority

  • The Central Government may prescribe the following for the smooth functioning of the Authority:
  • Composition, qualifications, salary, allowances, term of office and disqualifications of the Chairperson and Members.
  • Procedures for resignation and filling vacancies.
  • Proceedings of the Authority, appointment of officers and employees and powers of the Chairperson.
  • Handling of complaints and grievances related to online games, including inquiry procedures.
  • Any other matter necessary to achieve the objectives of the Act.

e. Handling Complaints

  • The Authority or designated agency may respond to complaints related to online games that are prejudicial to the interests of users. Complaints may be submitted in writing or electronically and the Authority is empowered to take appropriate action.

Penalties and Enforcement under the Online Money Gaming Regulations

  • Under the provisions of the Act, any individual or entity offering online money-based games, facilitating transactions or authorizing funds for such activities will face punishment of up to three years of imprisonment, a fine of up to ₹1 crore, or both. Additionally, unlawful promotion or advertisement of such games carries penalties of up to two years of imprisonment, a fine of up to ₹50 lakh or both. As per the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, these offences are classified as cognisable and non-bailable, allowing authorities to act promptly. 

Impact on Industry & Stakeholders

  • The Promotion and Regulation of Online Gaming Act, 2025 affects multiple stakeholders across the industry. Players benefit from enhanced protection through responsible gaming measures, fair play mechanisms and safeguards against fraudulent practices, while retaining the right to participate in skill-based games without fear of legal repercussions. Online gaming operators are required to comply with licensing, operational and disclosure obligations, ensuring transparency and accountability in their services. The government gains a structured framework for taxation, regulation and enforcement, helping curb illegal or unregulated activities and integrating the sector into the formal economy. Overall, the Act aims to balance growth and innovation in the online gaming industry with consumer protection and ethical business practices.

Challenges and Considerations

The implementation of this Act, faces several challenges. Distinguishing between games of skill and games of chance remains complex and may lead to legal ambiguities. Ensuring compliance by operators, particularly offshore platforms, requires robust monitoring and enforcement mechanisms. The growth of the industry also raises concerns about player addiction, cybersecurity and data privacy, which must be addressed through responsible gaming initiatives and technological safeguards.

Conclusion

  • The Promotion and Regulation of Online Gaming Act, 2025 establishes a comprehensive legal framework to govern online gaming in India, balancing the promotion of industry growth with consumer protection and responsible gaming. By regulating operators, ensuring transparency and differentiating between skill-based and chance-based games, the Act fosters a safe, fair and accountable gaming ecosystem. For the industry, it provides clarity, legitimacy and opportunities for innovation, while for consumers, it ensures protection from fraud, addiction and financial exploitation. Overall, the Act is poised to strengthen the online gaming sector in a structured manner, encouraging responsible participation and sustainable growth.

Disclaimer

This document is intended to provide general information and is not intended to be substituted for any legal or professional advice. This document is meant exclusively for informational purposes and not for advertising or solicitation. UJA has made significant efforts to ensure that the information contained in this document is accurate and reliable. However, the information herein is provided “as is” without warranty of any kind. UJA hereby disclaims all responsibility and liability, whether stated or implied, for the accuracy, validity, adequacy, reliability or completeness of any information provided under this document. In no event shall UJA be held liable for any losses or damages whatsoever incurred as a result of using this document.

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