Understanding the Promotion and Regulation of Online Gaming Act, 2025

On August 22, 2025, the President of India gave assent to the Promotion and Regulation of Online Gaming Act, 2025, which has taken a significant step towards regulating online money gaming activities. This legislation seeks to address the increasingly alarming problems concerning online gaming: addiction, fraud, and illicit misuse of games for misconduct.

The Act provides a legal framework at the national level so that there will be uniformity across states in regulation and enforcement, addressing aberrations on cross-border and interstate issues. It applies to online money gaming services rendered within India. 

Key Provisions

Scope and Applicability

• The Act is applicable to all online money gaming services offered across India regardless of their operation from an Indian Limited company, or a foreign entity.
• It builds an extensive architecture to cover and govern the activities of any online gaming, with a balanced ecosystem for innovation balancing out the harmful effects.

Penalties for Violation

• For Operators: Any Operators involved in prohibited online gaming activities may incur imprisonment for up to a maximum duration of 3 years or pay a penalty of an amount not exceeding ₹1 crore.
• For Advertisers: Sentences of up to 2 years for entities that advertise the banned platforms, along with a fine of ₹50 lakh.

Execution Measures

• Blocking Access: Internet Service Providers (ISPs) are directed to block access to known illegal gaming websites and applications.
• App Store Monitoring: Moves are in the way of ensuring that banned applications are effaced from official app stores.
• Legal Actions: Authority-value curators institute their proceedings against persons and companies with eyes to their banned platforms.

Economic Impact of the Ban

Before the ban, online gaming in India was growing at a tremendous scale:

• 2021: Revenue from online gaming rose to $1.2 billion with an increase of 28%. (sansadtv.nic.in)
• 2024 Projection: It is to be pegged at $1.9 billion.

But with the promulgation of the ban in August 2025, the industry suffered immediate blows on the financial front:

• Loss in Revenue: Estimated loss ranging from ₹1,000 to ₹1,500 crore was reported for the first quarter post-ban.
• Job Impact: Layoffs and restructuring led to around 10,000 employees in the online gaming sector being hit hard.
• State Revenue: The state revenue of Goa, along with Sikkim, which allowed these platforms, dipped in receiving licensing fees and tax-related revenue.

Fraud and Misuse Data

• Increase in Cyber Fraud: In many instances of cyber fraud, including phishing, online scams, and financial crimes targeting users of online gaming platforms, there has been a sharp increase.
• Financial Losses: Approximately every user lost ₹500–700 crore in fraudulent activities related to online gaming platforms.
• Actions Taken: Authorities have initiated more than 200 enquiries into online gaming fraud, with arrests made and assets seized from illegal engagement.
• Committing Suicide: Many people started investing money in gambling games and eventually lost all their savings and money; because of it, there was a hike in suicide cases. 

Banned Real-Money Gaming Apps (Promotion and Regulation of Online Gaming Act, 2025)

Frequently Asked Questions (FAQs)

1. What is the Promotion and Regulation of Online Gaming Act, 2025?

The law seeks to regulate online gaming activities in India with respect to problems such as addiction, fraud, and use for illegal purposes.

2. What is the Act's date of enactment?

The Act was enacted on August 22, 2025.

3. To whom does this Act apply?

The Act includes all individuals and entities in India involved with the activity of online money gaming.

4. Is there any penalty mentioned in the act for "Users"?

The penalties are not stated for the users in the Act, but users are at risk of Financial Loss and Legal Consequences. (user may face legal consequences)

5. What are the penalties for operators under the Act?

Operators face imprisonment for a term of 3 years and up to a ₹1 crore fine or both.

6. Are there penalties for advertisers?

Yes, advertisers can face 2 years of imprisonment and a fine up to ₹50 lakh.

7. How will this Act be enforced?

Among the various methods of enforcement are blocking access to illegal platforms, removal of banned applications from app stores, and initiating prosecutions against offenders.

8. Do the Act's provisions apply to Indian and foreign platforms alike?

Yes, the Act is applicable to all online money gaming platforms that operate in India, irrespective of their origin.

9. What prompted the enactment of the Act?

The Act was made for suicides, addiction, fraud, and misuse of online gaming platforms for illicit activity.

10. Are there any exceptions to the specified ban?

According to the Act, the prohibition on real-money online gaming is exhaustive in nature and lays down no exceptions.

11. Will users be able to access such platforms through VPNs?

Though VPNs may help with short-lived access, the Act allows authorities to conduct action against any means of such circumvention.

12. Are there any provisions for the treatment of users?

Treatment of users falls out of the scope of the Act, but the Act creates the way for application of state government-run rehabilitation programmes.

13. How does the Act operate on platforms like Dream11?

Platforms such as Dream11 are to stop; it is real-money gaming activities under the Act and also will be penalised for noncompliance.

14. Will users have a free play option for fantasy sports?

Free-to-play fantasy sports can function, but the real-money gaming aspect is banned.

15. What is the role of state governments under the Act?

Implementation of the provisions of the Act will be with the respective State Governments.

16. How does the Act deal with online gaming addiction?

The Law intends to curb all forms of addiction by regulating online gaming activities with the penalties under this Act.

17. Will online gaming operators be compelled to comply with any provisions?

Operators are compelled to stop real-money gaming activities and to conform to the provisions of the Act.

18. What steps have been taken to curb fraud?

The Act provides a penalty for all kinds of fraudulent activities and gives powers to the authorities to take action against offenders.

19. How can users report violations?

Users can inform the relevant authorities about violations, law enforcement agencies, and regulatory enforcement agencies.