India's Union Minister talks esports growth, player safety
India’s online gaming sector is experiencing major regulatory changes. Following the enactment of the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), which prohibits money-based betting while allowing esports and social games, the government is focusing on ensuring compliance and protecting users. On 1 September 2025, Union IT Minister Ashwini Vaishnaw met with leading gaming companies to discuss issues including fund security, regulatory adherence, and the development of lawful gaming platforms.
Background of the meeting
According to Economics Times report, the meeting was held as part of the government’s efforts to implement PROGA 2025, which prohibits online money-based games while allowing esports and skill-based platforms. The discussion included representatives from gaming companies, industry bodies, esports associations, and payment service providers, highlighting the wide-ranging implications of the new law.
As per the local media source, “IT Minister Ashwini Vaishnaw and officials met online gaming industry representatives. Discussion focused on promoting esports and social games. Points related to orderly transition and protection of users’ money were also discussed. It was noted that the industry has taken steps to ensure compliance with the Act.”
Key points discussed in the meeting
The meeting’s main topic was the new gaming law’s implementation, with a focus on esports and social gaming in particular. In order to prevent service interruptions, officials talked about giving platforms enough time to adhere to the rules. Additionally, the government underlined how crucial financial measures are to protecting user funds, especially for those moving away from money-based gaming models.
At a stakeholder meeting held at Rail Bhawan, Minister Ashwini Vaishnaw addressed concerns raised by industry representatives regarding the scope and clarity of the new legislation. He stated that the aim is to support regulated gaming and esports while enforcing restrictions on real-money betting platforms.
“If there is any lack of clarity in the definitions or categorisation under the new law, we are open to considering amendments to resolve the industry’s concerns.”
–Ashwini Vaishnaw, Electronics and information technology minister, India
Vaishnaw noted that if definitions or classifications in the law are unclear, the government is open to considering amendments. Invitations to the meeting were extended to industry participants over the weekend.
Compliance and industry readiness
Some major gaming platforms have voluntarily discontinued money-based services in response to new regulations. Smaller studios, however, have raised concerns that high compliance costs may limit their ability to innovate and expand.
Following the enactment of the Act, India’s gaming industry has suffered disruption. Major platforms, including Dream11, MPL, Zupee, WinZO, and PokerBaazi, have ceased cash operations, with MPL reportedly reducing its workforce by 60 percent. The ban, which carries penalties of up to three years’ imprisonment, has raised concerns over job losses and the potential emergence of unregulated platforms.
The bill permits esports and free-to-play games, aiming to support non-monetised formats, but smaller studios remain concerned about compliance costs and long-term viability.
Financial and advertising restrictions
The new rules forbid banks and other financial organisations from handling transactions involving unlawful online money games. If you advertise such games, you might face up to two years in prison and/or a fine of ₹50 lakh ($56,700). If you facilitate connected transactions, you could face up to three years in prison and/or a fine of ₹1 crore ($113,400). Repeat offenders risk a fine of ₹2 crore ($226,800) and three to five years in prison. Offshore gaming platforms continue to target Indian users in spite of these steps, circumventing domestic regulations.
Stakeholder concerns and requests
Representatives from the industry demanded that the bill have more detailed definitions, especially with relation to hybrid gaming formats. In order to properly differentiate between games that are allowed and those that are not, payment service providers asked for more time and technical assistance.
The government’s commitment to the sector, as reiterated by Minister Ashwini Vaishnaw, aims to position India as a leading esports destination, with plans to host international tournaments and attract investment. He also emphasised the need to balance industry growth with safeguards against gambling-related risks.
Founder of Revenant Esports, Rohit N Jagasia responded to the Ministry’s outreach with cautious optimism. As the industry awaits formal guidelines under the new gaming law, he emphasised the importance of structured dialogue and regulatory clarity to ensure a smooth transition for stakeholders.
Jagasia shared, “We welcome the Ministry of Electronics and Information Technology (MeitY) decision to meet representatives from our industry. We are yet to get the formal guidelines, and this engagement will give us the clarity on compliance requirements to streamline the law’s implementation. It also signals the start of the much-needed dialogue between the government and the gaming industry. As we move forward, we need clarity on compliance, licensing, and implementation timelines. A structured, consultative approach will help us transition smoothly and build a new ecosystem confidently and responsibly. This will also lead to the industry’s manifold growth through innovation.”
Legal challenges
Gaming platform A23 has filed the first legal challenge against PROGA, arguing that the law criminalises skill-based games such as rummy and poker without distinguishing them from games of chance. The company claims this approach violates constitutional protections related to business and free expression. The court denied A23’s request for a stay on 30 August, with the next hearing scheduled for 8 September 2025.
Major platforms, including Dream11, MPL, and Gameskraft, have opted not to pursue legal action, with public statements confirming their decision to comply with the law. As a result, A23 remains the sole challenger to legislation that has effectively shut down India’s ₹3.6 billion real-money gaming sector. The government maintains that the ban is necessary to address concerns related to addiction, financial fraud, and national security risks.
The discontinuation of money-based games is expected to reduce financial losses linked to gaming addiction, which reportedly amounted to ₹20,000 crore in 2024. Clearer regulations may help attract foreign investment and support the development of a more sustainable gaming environment.
