The Lok Sabha (lower house) of the Indian Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, which aims to regulate e-sports, educational games and social gaming.
The bill bans online money and betting games, their promotion and prohibits financial transaction facilitators to extend their services to such games. Both imprisonment terms and hefty fines for violators are outlined in the bill.
Offering or engaging with such games for money would incur imprisonment of up to two years or a fine of INR10 million (USD114,928). Advertising them would incur the same imprisonment term or a fine of INR5 million. Subsequent convictions would incur larger penalties and increased imprisonment sentences.
These offences are cognisable and non-bailable, which means arrests can be made without warrants and the court has the discretion to grant bail.
Where a company is in violation, every person who is a part of the company, in charge of the business aspect and had knowledge of the breach, can be prosecuted. Where a director, manager, secretary or any other company officer was involved in the execution of such a violation, they would be held liable as well. An independent or a non-executive director not involved in the actual decision making of the company will not be liable.
The bill also establishes an authority to oversee the recognition, categorisation and registration of online games. It gives the central government the power to establish further rules to implement these measures.
