Online Gaming In India – Gaming

The gaming business has witnessed the introduction of a landmark
laws, which has impacted the operations and existence of the
on-line gaming business, as a complete. The Promotion and Regulation of
Online Gaming Act, 2025(“Online Gaming
Act” or
“Act“) and the Draft
Promotion and Regulation of Online Gaming Rules, 2025
(“Draft Rules”) have offered a unified
authorized framework for regulating on-line video games and on-line betting
throughout India.

The Online Gaming Act acquired the assent of the President of
India on 22 August 2025. However, the Central Government has not
but notified any date within the Official Gazette, as to when it shall
come into pressure, as required underneath Section 1 (3) of the Act.

Further, though the Draft Rules had been launched on 2 October
2025 by the Ministry of Electronics and Information Technology
(“MeitY“) and had been saved open for public
session till 31 October 2025, these Draft Rules have additionally not
been finalised and are available into pressure and impact.

The Act brings about vital adjustments from the earlier
legislations, prohibiting “Online Games” which contain
any stakes or expectations of financial returns.

This FAQ seeks to supply an understanding of the important thing provisions
of the Act and an perception on the Draft Rules:

1. What is the brand new Online Gaming Act about and its scope
of applicability?

The Online Gaming Act is a laws handed by Parliament of
India which inter alia bans “Online Money Games”
and establishes a regulating authority to control “Online
Games”. The Act extends to the entire of India and applies to
all Online Games performed by customers in India, together with operators
providing Online Games from outdoors India.

2. What are the classes of Online Games underneath the
Act?

Under the Act, “Online Games” are
categorised in three classes: “Online Money Games”,
“Online Social Games” and “E-Sports”:

1. Online Money Games: This class consists of all
   Online Games that are performed by paying any charges or cash, with the
   expectation of profitable cash or financial awards or any “different
   stakes”, regardless of whether or not profitable relies on probability or
   ability.

The expression “other stakes” consists of something which
could also be recognised as equal or convertible to cash, and
consists of credit, cash, token or objects or every other factor else
which could be bought by instantly or not directly paying cash.

2. Online Social Games: This class of Online
   Games consists of video games performed for leisure, recreation and
   skill-building, which don’t contain staking of cash or anticipating
   to win cash. This class permits for the enjoying of video games freed from
   value or which could require a subscription payment or a one-time payment to
   play the sport, offered such payment doesn’t have the character of a wage
   or guess.




3. E-Sports: These are organised, aggressive
   Online Games performed in both particular person or staff codecs, and which
   require bodily dexterity, psychological agility, strategic pondering or
   different related expertise to be performed. E-Sports can require a
   registration or participation charges, and performance-based prizes as
   effectively. The E-sport should be recognised underneath the National Sports
   Governance Act, 2025.

3. Which Online Games are prohibited underneath the
Act?

The Act implements a blanket ban on Online Money Games. The
prohibition additionally extends to any “Online Money Gaming
Services”, which has been outlined to incorporate any providers
provided by an individual, which has the impact of aiding, abetting or
inducing Online Money Games.

Additionally, the Act prohibits any individual from:

1. aiding, abetting, inducing or being concerned within the
   commercial, promotion or affect of any Online Money Game,
   whether or not instantly or not directly.




2. facilitating or authorising funds, transfers or monetary
   transactions in direction of funds for any Online Money Games. (consists of
   banks, monetary establishments, cost gateways and wallets).

4. Which Online Games are permissible underneath the
Act?

The Act permits E-Sports and Online Social Games. With respect
to E-Sports, the Act goals to advertise and develop E-Sports and
set up it as a official type of aggressive sport in India.
With respect to Online Social Games, the Act offers for creation
of platforms and programmes to help and encourage the
growth of such video games for leisure and academic functions
in India.

5. Why has the Act been enacted and what goals does
it search to realize?

As per the Press Release1 dated 21 August 2025, issued by the
Press Information Bureau of the Government of India, the Act has
been enacted to handle rising considerations over the dangerous affect of
Online Money Gamesin India, together with habit, heavy monetary
losses, fraud, and psychological well being points.

The goals of the Act are twofold: (i) defending
customers and public curiosity by banning Online Money Games,
stopping misuse of cost programs, and safeguarding in opposition to
fraud, habit, and cash laundering; and (ii) selling
constructive features of gaming resembling E-Sports, social and
instructional video games, and skill-based innovation. By establishing a
central framework, the legislation goals to stability shopper security with
financial and technological development, positioning India as a regulated
however thriving hub for protected and accountable Online Gaming.

6. Is the regulation of Online Gaming a matter inside
the legislative area of the Centre or the
States?”

While betting and playing falls underneath Entry 34 of the State
List within the Seventh Schedule of the Constitution of India, the
Central Government has justified the introduction of the Online
Gaming Act as a matter of public curiosity. Further, provided that
Online Gaming usually exceeds state boundaries and regularly
includes international operators, the Centre has deemed it essential to
set up a uniform nationwide framework.

7. Who has the statutory mandate to implement and
oversee compliance with the Act?

The statutory mandate to implement and oversee compliance with
the Online Gaming Act principally lies with the Central Government,
with no powers or authority being given to the State
governments.  

Rule 5 of the Draft Rules proposes the institution of a
central regulatory authority, i.e. the “Online Gaming
Authority of India” which might recognise, register and
monitor Online Games and distinguish between the three sorts of
Online Games.

8. What powers is the Online Gaming Authority proposed
to have? 

Rule 10 of the Draft Rules offers the Online Gaming Authority
with powers and features which inter alia embrace
recognising, categorising and registering Online Games, inquiring
into any grievance referring to an internet sport, imposing penalties
within the occasion of non-compliance with the Act and cancelling or
suspending any registration. Rule 10 (3) offers the Online Gaming
Authority the identical powers as a civil courtroom, for the aim of
discharging its features.  

9. What is the method for registration of an Online
Game underneath the Draft Rules, 2025? 

Rules 12 to16 of the Draft Rules stipulates the method for
registration of any Online Game. The software for registration
should be made as per Rule 12 of the Draft Rules, to the Online
Gaming Authority and embrace particulars of the title and outline of
the sport, focused age group, income mannequin, grievance redressal
mechanism, and person security options. 

The Online Gaming Authority will first decide whether or not the
sport is an Online Money Game or not, on a suo moto or software
foundation, underneath Rule 13. If the Online Game is eligible for
registration, the Authority shall problem a Certificate of
Registration inside 90 days. The certificates shall be legitimate for up
to 5 years, except suspended or cancelled. 

10. Is there scope to enchantment the selections of the Online
Gaming Authority underneath the Draft Rules? 

As per Rule 11 of the Draft Rules, an enchantment in opposition to any
resolution of the Online Gaming Authority, together with dedication of
the kind of sport, registration, cancellation, or penalty, could be
filed earlier than the Appellate Authority, i.e., the Secretary to
Government of India within the MeitY. Such an enchantment should be filed
inside 30 days of receiving the Online Gaming Authority’s
resolution by the aggrieved get together in writing. The Appellate Authority
could verify, modify, or put aside the choice after giving the
appellant a chance of being heard. The enchantment needs to be
disposed of inside 30 days of receipt.

11. What are the penalties imposed for providing,
promoting, or facilitating Online Money Games underneath the
Act?

The Online Gaming Act lays down strict penalties for anybody
concerned in providing Online Money Games or Online Money Gaming
Services:

1. Offering or working an Online Money Gaming
   Service: Jail as much as 3 years or effective as much as INR 1 crore, or
   each. Any repeat offence will entice imprisonment of 3-5 years,
   plus a effective of INR 1 to 2 crore.




2. Advertising or selling Online Money Games:
   Jail as much as 2 years or effective as much as INR 50 lakh, or each. A repeat
   offence will entice imprisonment of 2-3 years, plus a effective of INR
   50 lakh to 1 crore.




3. Facilitating funds/transactions for Online Money
   Games (banks, FIs and many others.): Jail as much as 3 years or effective as much as
   INR 1 crore, or each. A repeat offence will entice imprisonment of
   3-5 years and a effective of INR 1 to 2 crore.

Further, the Act offers that when an organization commits an offence
underneath this Act, each individual accountable/ in control of that a part of
the corporate, will probably be chargeable for fee of the offence.

All of the above offences are cognizable and are
non-bailable.

12. Are there any interpretational challenges or authorized
ambiguities underneath the Act?

1. Unclear standards for regulation: The Central Authority can
   determine which video games qualify as Money Games, however the Act doesn’t
   clearly specify the requirements or course of, which can result in
   inconsistent choices.




2. Banking and cost restrictions: Banks and cost suppliers
   should block transactions associated to cash video games, however figuring out all
   such transactions could possibly be operationally complicated and
   difficult.




3. The blanket ban on Online Money Games (skill-based) could quantity
   to denial of the constitutional proper to livelihood for hundreds
   {of professional} gamers who earn a dwelling by way of skill-based
   platforms. By banning all Online Money Games with no distinction
   between ability and probability, the Act arbitrarily extinguishes a
   official supply of livelihood, violating Article 21 of the
   Constitution of India which ensures the fitting to life and
   private liberty, together with the fitting to pursue a occupation.

13. How does this new regulatory framework differ from
the outdated framework?

The Act differs from the outdated framework within the following
methods:

1. Subject matter: The earlier regulatory
   framework comprised of the Public Gambling Act, 1867, together with
   varied state legislations, since betting and playing fall underneath
   the State List. However, this regime primarily addressed
   conventional types of betting and playing and didn’t formally
   acknowledge on-line gaming, playing, betting, or waging. In distinction,
   the Act particularly addresses the digital panorama, regulating
   on-line gaming broadly whereas prohibiting Online Money Games, thereby
   creating a definite and trendy authorized framework.




2. Codified Act: The outdated regime was ruled by
   a number of State legislations, the legality of video games involving cash
   relied on the particular provisions specified by every State
   laws, which various broadly in scope and software. In
   distinction, the Online Gaming Act establishes a single, codified
   central laws that applies uniformly throughout India, offering
   readability and consistency in regulating on-line gaming and money-based
   video games.




3. Test for legality: Under the outdated regime, the
   judiciary developed the ‘skill-versus-chance’ take a look at to
   decide the legality of video games involving cash. Subject to every
   State laws, a sport was permissible if it required a sure
   diploma of ability. The Online Gaming Act, nevertheless, dispenses with
   this distinction, prohibiting any Online Games that contain
   financial stakes, no matter whether or not they’re video games of ability or
   probability.

14. Have the earlier legal guidelines on gaming and playing been
repealed?

No, the earlier legal guidelines on gaming and playing, together with the
Public Gambling Act, 1867 and the assorted State playing
legislations, haven’t but been repealed. The Online Gaming Act
operates concurrently as a central legislation, particularly regulating
Online Gaming and money-based video games, whereas conventional state legal guidelines
proceed to control bodily betting and gamblingwithin their
respective jurisdictions. Further, as per Section 18 of the Online
Gaming Act has an overriding impact and stipulates that the
provisions of this Act shall be along with, and never in
derogation of the provisions of every other legislation presently in pressure.
However, within the occasion of any inconsistency between the provisions
of this Act and people of every other legislation, the provisions of the
Online Gaming Act shall prevail to the extent of such
inconsistency.

15. Does the prior differentiation between “video games
of ability” and “video games of probability” nonetheless maintain good in
legislation?

Under the earlier regime, the authorized distinction between a
“game of skill” and a “game of chance” was
impertinent in deciding the legality of a sport. Any financial
incomes in video games of ability resembling rummy, and sports activities fantasy video games
had been permissible. However, underneath the Act, the important thing query in
figuring out the legality is whether or not the sport includes staking cash
with the hope of profitable extra? If sure, it could fall underneath the
ambit of”Online Money Games”, regardless of whether or not
ability is utilised or not.

16. Is the Online Gaming Act aligned with world
practices primarily based or primarily based on any international laws?

While India’s legislation is sort of strict, there are partial
similarities with legislations of different jurisdictions. Key world
practices that resemble India’s strategy embrace:

1. Japan: In Japan, playing is ruled by the
   Penal Code, which explicitly bans on-line playing. This prohibition
   extends to accessing and taking part in international on-line casinos,
   even when these platforms are legally operated overseas. An modification
   to the Act on Countermeasures Against Gambling Addiction, generally
   often called the Anti-Gambling Act, additionally outlaws web sites that
   facilitate unlawful on-line playing or promote offshore playing
   providers. However, Japan permits sure types of bodily
   playing, resembling land-based casinos positioned inside designated
   Integrated Resort zones, offered they’re licensed underneath the 2018
   IR Implementation Law. Japan’s stance carefully mirrors
   India’s, as each nations prohibit on-line playing and implement
   legal penalties on those that function, interact in, or promote
   such actions, whereas nonetheless permitting regulated bodily playing
   venues.




2. China: Mainland China enforces a complete
   ban on playing, allowing solely two government-operated lotteries.
   The cornerstone of this prohibition is Article 303 of the Criminal
   Law of the People’s Republic of China, which outlaws playing
   for revenue and associated actions. This restriction encompasses all
   types of playing, together with bodily casinos, sports activities wagering,
   poker, on-line platforms, and personal betting. Additionally, the
   Chinese authorities actively blocks entry to abroad playing
   web sites. Violations of those legal guidelines can result in harsh penalties,
   resembling substantial fines and imprisonment of as much as three years.
   Compared to India, China’s regulatory stance on playing is
   notably extra stringent.




3. Singapore: The Gambling Control Act, 2022
   states that any one who advertises illegal playing is claimed to
   commit an offence and shall be chargeable for a effective. This provision
   penalising the promoting of any prohibited video games or types of
   playing can also be offered for underneath the Online Gaming Act.

Conversely, Western regulatory regimes differ from India’s
and focus extra on licensing and regulating moderately than prohibiting
actual cash video games:

4. United States of America: The United States
   operates underneath a twin regulatory framework the place particular person states
   have the first authority to control on-line playing, whereas
   federal legal guidelines set up sure boundaries. The federal regulatory
   framework of the Unlawful Internet Gambling Enforcement Act
   (“UIGEA“) of 2006 doesn’t prohibit
   on-line playing however moderately states that if the web playing
   transaction is unlawful underneath state or federal legislation, banks and
   cost processors will probably be required to dam the transaction. State
   governments stay in charge of legalizing on-line playing
   operations inside one state’s borders. They have the authority
   to permit completely different types of on-line playing, together with on-line
   casinos, on-line poker, on-line sports activities betting, and fantasy sports activities
   and might set up their very own regulatory authority. This differs from
   India’s centralized prohibition strategy, as operators should
   receive separate licenses for every state wherein they want to
   function




5. Australia: The Interactive Gambling Act, 2001
   prohibits many types of interactive gaming i.e. a playing service
   offered on broadcasting, datacasting, phone, and on-line
   platforms. Certain interactive playing providers resembling on-line
   blackjack, poker, roulette or slot machines, and any commercials
   of the identical are prohibited. Further, all regulated interactive
   playing requires licensing. Similar to the Indian laws, the
   Australian Act offers for an authority i.e. the Australian
   Communications and Media Authority
   (“ACMA“) which maintains an inventory of all
   licensed interactive playing suppliers which can be permitted to
   function in Australia and any grievance of providers provided or
   commercials made could be made to the ACMA.




6. United Kingdom: The Gambling Commission, set
   up underneath the Gambling Act, 2005, is the first regulator of the UK
   playing business. It regulates varied types of playing,
   together with on-line playing, points licenses to operators who meet
   the related necessities, examine complaints and impose
   penalties for non-compliance. The Commission is vested with related
   features as an authority that’s to be arrange underneath the Indian
   Act. Furthermore, the UK has particular laws for distant
   playing operators provide their providers to UK residents, mandating
   that they receive a license.

While the Indian statute bears similarities with respect to
process, most Western regulatory regimes, deal with licensing and
regulating moderately than prohibiting actual cash video games. The Indian
Online Gaming Act bans all Online Money Games, failing to
distinguish between video games of probability and ability for prohibition.

Note: Please be suggested that the responses offered
underneath Serial Numbers 7 to 10 are premised upon the Draft Rules,
which stay topic to public session and haven’t but been
introduced into pressure. Consequently, such responses could require
revision ought to the Draft Rules endure any modification previous to
their formal notification.

The content material of this text is meant to supply a basic
information to the subject material. Specialist recommendation needs to be sought
about your particular circumstances.