What Are the Current Laws on Online Gaming in India? (2025 Update)

Introduction

The online gaming industry in India has witnessed explosive growth over the past decade. With millions of users engaging in games ranging from fantasy sports to esports and casual mobile games, India has become one of the fastest-growing markets globally. In 2025, the industry’s estimated value exceeds USD 6 billion, with projections of continued growth.

However, this rapid expansion has also attracted regulatory scrutiny. Concerns around addiction, underage participation, financial fraud, and gambling-related issues have prompted the Indian government to introduce a comprehensive legal framework for online gaming. This article explores the current laws on online gaming in India, the implications for operators, investors, and players, and the emerging trends in this evolving sector.

Overview of Online Gaming Laws in India

India does not have a single uniform law for online gaming. Instead, it is governed by a combination of central legislation and state-specific regulations. Recent developments, particularly the Promotion and Regulation of Online Gaming Act, 2025, have sought to unify these regulations.

Key objectives of online gaming laws in India include:

• Protecting players from gambling-related harm
  

• Promoting responsible gaming
  

• Ensuring financial transparency and consumer protection
  

• Encouraging the growth of skill-based games and esports
  

The Promotion and Regulation of Online Gaming Act, 2025

Passed in August 2025, the Promotion and Regulation of Online Gaming Act is a landmark legislation that establishes a national framework for online gaming.

Key Provisions

1. Ban on Real-Money Games

The Act prohibits all online games involving monetary stakes, including deposits, bets, and winnings. Violations can lead to:

• First offense: Up to 3 years imprisonment and ₹1 crore fine
  

• Repeat offense: Up to 5 years imprisonment and ₹2 crore fine
  

This applies irrespective of whether a game is skill-based or chance-based.

2. Establishment of National Online Gaming Commission (NOGC)

The Act sets up the NOGC, a regulatory authority responsible for:

• Issuing licenses for permissible games
  

• Classifying games into skill, chance, or hybrid categories
  

• Enforcing compliance and conducting audits
  

• Addressing disputes through the Online Gaming Appellate Tribunal
  

3. Classification of Games

• Permissible Games: Skill-based games such as fantasy sports, esports, quizzes, and educational games.
  

• Prohibited Games: Pure gambling or games of chance, including online casinos, betting, and lottery platforms.
  

• Hybrid Games: Games with both skill and chance components, to be reviewed by the NOGC before approval.
  

4. Consumer Protection Measures

Online gaming platforms are required to:

• Verify age to prevent underage gaming
  

• Offer self-exclusion features for users
  

• Set deposit and playtime limits
  

• Provide robust grievance redressal mechanisms
  

5. Financial Compliance

The Act mandates strict financial oversight, including:

• Segregated user accounts for security of funds
  

• Compliance with Prevention of Money Laundering Act, 2002 (PMLA)
  

• Reporting and monitoring of suspicious transactions
  

• Ensuring transparency in payouts and prizes
  

State-Level Laws on Online Gaming

Before the national Act, online gaming was primarily regulated by state-specific laws, which created a patchwork of regulations:

The 2025 Act now provides a uniform framework, superseding conflicting state laws while allowing states to maintain additional consumer protections.

Impact on the Online Gaming Industry

Operational Shifts and Company Responses

The new Act has caused immediate operational and financial impacts:

• Dream11: Paused certain real-money gaming operations in compliance with the Act.
  

• Mobile Premier League (MPL): Announced layoffs affecting ~60% of Indian workforce (~300 employees) due to operational downsizing.
  

• Flutter Entertainment / Junglee Games: Stopped offering real-money games in India, shifting focus to global markets.
  

Industry Concerns

• Shift to Offshore Platforms: Experts warn players may move to unregulated international platforms.
  

• Investor Caution: Foreign investors are hesitant due to strict regulations on monetary gaming.
  

• Job Losses: The ban has affected thousands of employees in tech, marketing, and operations roles.
  

Legal Challenges

Several companies and industry bodies are challenging the Act in courts:

• A23: Filed the first legal challenge against the ban on online money games.
  

• Skill vs Chance Debate: Companies argue that games of skill should not be classified as gambling.
  

• Potential for Judicial Review: Courts will play a key role in interpreting permissible limits for online gaming operations.
  

Promoting Responsible Gaming

To comply with the law and maintain consumer trust, online gaming platforms are emphasizing responsible gaming practices:

• Implementing AI-based monitoring for compulsive gaming behavior
  

• Offering educational tools to teach users about risks of over-gaming
  

• Partnering with mental health organizations to provide counseling support
  

Future Outlook of Online Gaming in India

Despite regulatory challenges, the Indian online gaming industry is expected to continue growing:

1. Focus on Skill-Based and Esports: Platforms are pivoting to tournaments, esports leagues, and educational games.
   

2. Technological Innovation: VR, AR, and gamification are becoming central to non-monetary gaming experiences.
   

3. Regulatory Dialogue: Ongoing discussions between regulators and industry bodies may refine permissible gaming rules and licensing processes.
   

4. Global Opportunities: Indian companies are exploring expansion to international markets to offset domestic restrictions.
   

Conclusion

India’s online gaming laws have evolved significantly, culminating in the Promotion and Regulation of Online Gaming Act, 2025. While the government aims to protect consumers and curb gambling-related harm, the broad regulations present challenges for operators, investors, and employees in the online gaming business.

The future of online gaming in India will largely depend on legal interpretations, industry adaptation to skill-based games, and ongoing collaboration with regulators. By promoting responsible gaming and technological innovation, India can maintain its position as a growing hub for digital entertainment while safeguarding consumer interests.