Govt to control E-Sports and social video games, prohibit on-line cash gaming

The Government of India’s Ministry of Electronics and Information Technology has drafted a notice for the Cabinet proposing the introduction of “The Promotion and Regulation of Online Gaming Bill, 2025” in Parliament. The invoice goals to advertise e-Sports and on-line social video games whereas concurrently prohibiting on-line cash gaming. This legislative motion is taken into account crucial because of the social, monetary, and safety threats posed by unregulated on-line cash gaming.

The Draft notice which is with Storyboard18 acknowledged that the exponential development of on-line gaming in India, fueled by elevated web penetration and smartphone utilization, has delivered to gentle a variety of considerations. According to the Ministry, whereas on-line gaming is a major a part of the artistic financial system and may contribute to cognitive improvement and technological literacy, on-line cash gaming particularly raises vital points. These points embrace habit, psychological well being issues, monetary losses resulting in suicides, and manipulative practices like opaque algorithms and bots.

The proposed invoice seeks to deal with these considerations by:

Enabling the promotion of e-Sports and on-line social video games.

Prohibiting the providing, aiding, or abetting of any on-line cash gaming service.

Prohibiting commercials that promote on-line cash video games.

Prohibiting monetary establishments from facilitating transactions for on-line cash video games.

Laying out punishments and fines for offenses, with enhanced penalties for repeat offenders.

Providing for the blocking of on-line cash game-related data, in addition to investigation, search, and seizure powers.

The Ministry justifies the proposal on constitutional grounds, citing the State’s accountability underneath Article 21 to guard the fitting to life and private liberty, which incorporates psychological well-being and security. The notice additionally references Article 47, which locations an obligation on the State to enhance public well being. The authorities argues {that a} central regulation is critical as on-line cash gaming platforms function throughout state and nationwide borders, making it a matter of nationwide significance involving cross-border regulation and cybersecurity.

The invoice additionally addresses the shortage of a uniform authorized framework, as present legal guidelines are fragmented and inconsistent judicial interpretations have led to a “regulatory grey zone”. Unregulated on-line cash gaming platforms pose nationwide safety and financial threats, together with their use for cash laundering, illicit fund transfers, and potential messaging by terror organizations.

The proposed laws is predicted to generate employment within the on-line gaming trade. It can also be seen as a step in the direction of reaching the “Atma Nirbhar Bharat” imaginative and prescient by fostering indigenous recreation improvement, decreasing reliance on overseas platforms, and positioning India as a worldwide hub for accountable recreation improvement.

The Ministry has circulated the draft notice to a number of different ministries for session, together with the Ministry of Home Affairs, Department of Expenditure, Department of Revenue, and Department of Sports.

The invoice envisages the creation of an authority to control on-line gaming. While the construction of this authority will probably be notified after the invoice’s enactment, preliminary monetary implications are estimated at Rs. 50 crores for capital expenditure and Rs. 20 crores for annual recurring expenditure. Necessary actions are to be taken inside six months of receiving Cabinet approval. The notice has been seen and authorized by the Minister of Electronics and Information Technology.