Union Minister Ashwini Vaishnaw has announced that the rules under the Promotion and Regulation of Online Games Act, 2025, will come into force on October 1. The move follows years of consultation with online gaming companies, banks, and other stakeholders. “Over the past three years, we’ve held multiple discussions with the industry, and even after the law was passed, we continued engaging with them,” Vaishnaw said. He added that another round of discussions is planned before implementation, and the government is open to extending timelines if the industry needs more time.
About the Promotion and Regulation of Online Games Act, 2025
Passed by Parliament on August 21 and now signed by the President, the Act aims to regulate online gaming in India. It specifically bans online money-based games while promoting e-sports and other non-monetary games. Electronics and IT Secretary S Krishnan said, “This is something which will come into effect very quickly, and we are taking all necessary steps for implementation.”
Key Provisions of the Act
- Online money games and their advertisements are prohibited.
- Banks and financial institutions cannot transfer funds for such games.
- Violations can lead to imprisonment and fines: Advertising online money games: up to 2 years in prison and/or Rs 50 lakh fine. Facilitating transactions: up to 3 years in prison and/or Rs 1 crore fine. Repeat offences: 3–5 years in prison and fines up to Rs 2 crore.
Banks and fintech companies had earlier requested detailed guidelines and sufficient time to implement the rules. Some major online money gaming companies have already shut down their services to comply with the law.
Challenges Ahead
Despite the law, the government faces difficulties in regulating foreign-based online betting platforms. Reports suggest that around 45 crore people in India lost roughly Rs 20,000 crore in one year due to online money gaming addiction.
