Ban on cash video games, push for e-sports

NEW DELHI: A day after the Cabinet authorised the introduction of the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to ban people or organisations from providing on-line cash video games or associated providers in India, shares of gaming platforms tumpled. In early commerce, shares of Nazara Technologies fell by almost 7%, whereas on line casino operator Delta Corp additionally plunged earlier than a partial restoration later within the session. Other platforms offering on-line cash video games corresponding to Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle at the moment are dealing with an existential disaster.

The authorities on Tuesday introduced that the Promotion and Regulation of Online Gaming Bill, 2025 will probably be launched within the Lok Sabha. According to the proposed draft of the Bill, the federal government sees an pressing want to control on-line gaming—selling social video games and e-Sports on the one hand whereas banning on-line cash gaming within the bigger public curiosity.

What are the completely different on-line video games?
The Online Gaming Bill, 2025 classifies on-line video games into 4 varieties—e-sports, social video games, academic video games, and on-line cash video games. E-sports are aggressive video video games performed in tournaments, much like conventional sports activities. Games like PUBG, FIFA, or Valorant are examples. The authorities desires to advertise e-sports as a skill-based exercise that may create careers.

Social video games are informal video games performed for enjoyable and leisure, typically with pals corresponding to Ludo King, Candy Crush, and on-line chess. These video games are protected however will nonetheless be regulated for consumer security, age-appropriate entry, and information safety. Educational video games are designed for studying and skill-building. They embrace math quizzes, coding video games for youths, or apps like Duolingo. The Bill helps such video games for his or her optimistic worth.

Online cash video games, the place gamers deposit cash and play for money rewards, will probably be fully banned due to their addictive and dangerous results. According to trade reviews, India’s on-line gaming market is at the moment valued at $3.7 billion and is projected to greater than double to $9.1 billion by 2029.

Why is the Bill wanted?
According to the federal government, on-line gaming in India has witnessed an explosive rise, pushed by inexpensive smartphones and deeper web penetration within the nation. Currently, there isn’t a uniform authorized framework to control the sector, neither is there a government to supervise content material requirements, consumer security, information safety, or monetary practices in social video games.

“In the absence of a clearly defined framework, both e-Sports and online social games in India continue to operate in a regulatory grey zone, limiting the sector’s potential while exposing users—especially young audiences—to various risks,” reads the draft.

The authorities has additionally warned that unchecked development of on-line gaming platforms has led to severe financial and psychological penalties, making clear guidelines pressing and needed. It confused that the expansion of this sector should align with nationwide curiosity, public security, and moral enterprise practices.

The draft additional highlights that unregulated enlargement of on-line gaming has contributed to habit, debt traps, suicides, and psychological well being points. Many cash gaming platforms are working throughout state and nationwide borders, typically by means of offshore servers, making regulation much more urgent.

A structured regulatory method, the federal government argues, will assist handle key considerations together with age-appropriate entry and habit dangers, notably amongst weak teams like minors. Moreover, formal recognition and governance of e-Sports will even permit India to faucet into the worldwide aggressive gaming ecosystem and open new profession alternatives for younger gamers.

 What is Prohibition within the Online Gaming Bill, 2025?

The proposed Promotion and Regulation of Online Gaming Bill, 2025 clearly says that nobody can run or assist run on-line cash video games in India. This means people, firms, or any platform aren’t allowed to supply such video games.

The Bill additionally bans commercials. No individual or organisation could make or publish advertisements—on TV, social media, or any on-line platform—that instantly or not directly encourage folks to play money-based on-line video games.

Even banks and fee firms can’t course of or permit transactions associated to those video games. In quick, prohibition right here means a complete ban on providing, selling, or funding on-line cash gaming.

To ensure that the legislation is adopted, the Central Government will arrange or appoint an Authority. This Authority will subject orders and pointers, and each gaming platform must obey them

Punishment and Penalty

As per the proposed legislation, anybody providing on-line cash gaming providers in violation of Section 5 can face imprisonment of as much as three years, a fantastic of as much as ₹1 crore, or each. The legislation additionally states that any one that makes or publishes commercials for such video games could be punished with imprisonment of as much as two years, a fantastic of as much as ₹50 lakh, or each. Similarly, anybody concerned in processing or authorising funds for on-line cash gaming can face imprisonment of as much as three years, a fantastic of as much as ₹1 crore, or each.