India Tightens Grip on Online Money Gaming: New Regulations and Industry Compliance

The Union IT Minister, Ashwini Vaishnaw, held a significant meeting with online gaming companies to address the critical issues of user protection and the promotion of eSports, according to official sources. This meeting gains importance as it follows the recent passage of The Promotion and Regulation of Online Gaming Act, 2025. The new law specifically prohibits online money games while encouraging eSports and social games.

Industry representatives have expressed their commitment to comply with the new regulations. The Act, which has received the President's assent, will come into force upon government notification. Banking and fintech firms have also requested detailed guidelines to implement the Act's provisions, particularly concerning transaction monitoring for online money games. The Act includes strict penalties, including imprisonment and hefty fines, for violating its terms.

Despite voluntary compliance from major players, a substantial challenge remains in regulating foreign-based platforms. Estimates indicate that around 45 crore Indians have lost considerable money to online money games, underscoring the pressing need for these legislative measures. As the government addresses these issues, it remains to be seen how effectively these changes can deter illegal online gaming activities.

(With inputs from agencies.)