Indian President grants assent to Online Gaming Bill 2025
The Promotion and Regulation of Online Gaming Bill, 2025 has officially become law after Indian President Droupadi Murmu granted her assent on Friday. The legislation, which was earlier passed by both Houses of Parliament, sets out a new framework for India’s fast-growing digital gaming sector. While it bans all forms of online games played with money, it encourages the development of esports and social gaming platforms.
Presidential assent confirms new law
A spokesperson for the Ministry of Electronics and Information Technology (MeitY) confirmed that the President had signed the Bill into law. “The Promotion and Regulation of Online Gaming Bill, 2025, receives President Droupadi Murmu’s assent,” the spokesperson told to local media. The government will now issue a notification announcing the date when the legislation will come into effect.
The law introduces strict penalties for companies and individuals that facilitate or promote money-based online games. Violators face up to three years of imprisonment and fines of up to ₹1 crore ($0.11 million). Those who advertise such platforms may receive up to two years in jail and fines of up to ₹50 lakh ($57,150).
Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, welcomed the intent but urged clarity. “The government’s intent to promote esports is an encouraging step that will make India more structured and globally competitive. But for this to truly work, the terms mentioned such as esports, online social gaming and online money gaming need to be well defined,” he told SiGMA News.
Government to draft rules soon
Ministry of Electronics and Information Technology Secretary S Krishnan said his department will soon prepare detailed rules under the new law. “As the bill is structured, even without rules, there are certain provisions that can come into force immediately. But that is a decision we will take,” he stated.
The rules are expected to clarify operational aspects such as enforcement mechanisms, definitions of prohibited money games, and the regulatory scope for promoting esports and online social gaming.
Minister highlights scale of the problem
Introducing the Bill in Rajya Sabha on 21 August, Union Minister for Electronics and IT Ashwini Vaishnaw emphasised the urgent need for regulation. He told Parliament that nearly $5.14 million people in India have been affected by money-based online games. According to him, more than ₹20,000 crore ($2.286 billion) of middle-class families’ savings have been lost through such platforms.
The Minister added that the World Health Organisation has classified gaming addiction as a disorder. He described online money gaming as a public health issue, pointing to psychological disorders, compulsive playing behaviour, withdrawal symptoms, and even violent behaviour linked to gaming addiction.
Ban on money games, push for esports
The law draws a sharp distinction between harmful money-based games and other forms of online entertainment. It completely prohibits betting, wagering, or any game involving financial stakes, while encouraging innovation in esports and skill-based social gaming.
By promoting esports, the government aims to boost India’s participation in global competitive gaming, which has rapidly grown into a billion-dollar industry worldwide. Social gaming platforms, which allow users to play without monetary risk, are also positioned to benefit from this shift.
Indian Prime Minister Narendra Modi has hailed the passage of bill, as a game-changing moment for India’s digital future. In a post on X, Modi said the legislation will fuel creativity and competitive gaming, while also protecting society from the risks of online money games like addiction and fraud.
This Bill, passed by both Houses of Parliament, highlights our commitment towards making India a hub for gaming, innovation and creativity. It will encourage e-sports and online social games. At the same time, it will save our society from the harmful effects of online money… https://t.co/t1iUuH9JP1
— Narendra Modi (@narendramodi) August 21, 2025
What happens next
With the Bill now signed into law, enforcement measures will begin once the official notification is issued. Operators running money-based games will be required to shut down or face legal action. Advertising agencies and digital platforms will also need to align their operations with the new restrictions.
The drafting of rules will determine how regulators monitor compliance and implement penalties. For players, the legislation marks a major shift in the online gaming landscape, signalling the end of money-driven gaming apps and the beginning of a regulated, safer environment focused on esports and social play.
