The Parliament in India passed the Online Gaming Bill, which empowers esports and heavily restricts online gambling within the country.
India is making big moves on the online space as the Parliament passes the Online Gaming Bill of 2025, which cracks down on online gambling while offering more structured support for esports within the nation.
India's Online Gaming Bill
Firstly, the bill's ban on online gambling. It refers to them as "Online Money Games," and the ban will apply across the entirety of India, as well as services operating from outside Indian territory but targeting the Indian audience.
The Bill imposes a complete ban on online money games. This applies to games of chance, games of skill, and those that combine both. Advertising and promotion of such games is strictly prohibited. Financial transactions related to these platforms cannot be processed by banks or payment systems. Authorities will also be empowered to block access to unlawful platforms under the Information Technology Act, 2000.
It also names some key reasons for this ban, namely: addiction and financial ruin, mental health tragedies due to heavy financial loss, fraud and money laundering, threats to national security, and legal loopholes. They also aim to encourage healthy alternatives by promoting esports as a legitimate sport and providing support to social and educational games.
In terms of deciding whether a game is considered a money game, a national regulatory authority will be assigned or established. The public can also address their grievances to this authority.
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Penalties
The Bill also introduces some heavy penalties for anybody found circumventing the ban.
- Offering/facilitating online money games: Imprisonment of up to 3 years and a fine of one crore rupees (~110,000 USD)
- Advertising online money games: Jail term of up to two years and a fine of fifty lakh rupees (~55,000 USD)
- For repeat offenders: Harsher punishments, including imprisonment of up to five years and fines of up to two crore rupees (~220,000 USD)
It also notes that "offences under key provisions will be cognisable and non-bailable, which means police can arrest without a warrant and bail is not a right."
Needless to say, this ban will affect online betting platforms, investors, and the marketing sector dedicated to working with these "money games." The stock market has already been affected in the short term, with companies such as Nazara Technologies (NODWIN Gaming's parent company) and Delta Corp, which operates a casino and hotel brand, experiencing immediate dips.
Esports and social games in India
The biggest thing concerning esports in the bill is its legal recognition as a legitimate competitive sport in India. Moreover, the Ministry of Youth Affairs and Sports will establish tournament standards and guidelines, on top of setting up institutions to advance the esports sector. Incentives and programs will be launched to help integrate esports into India's already existing sports policies.
As for social games, the government will push to recognize and register games that are safe and age-appropriate. There will be dedicated platforms which will focus on games that encourage education, culture, or skills.
These new support structures also aim to expand opportunities and promote innovation in the gaming sector. Youth empowerment is also a prospective area of improvement, as "esports and skill-based digital games will help them build confidence, discipline, and teamwork."
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