Union IT Minister Ashwini Vaishnaw held talks with representatives from India’s online gaming industry on Monday to discuss ways to protect players’ funds and promote eSports and skill-based games.
New online gaming law
The meeting comes soon after Parliament passed the Promotion and Regulation of Online Gaming Act, 2025, which bans all money-based online games while encouraging eSports and social gaming. The Act, now signed by the President, will come into force once formally notified.
According to officials, discussions focused on ensuring a smooth transition for both players and companies, while also strengthening safeguards for users’ money. Many gaming firms have already begun adjusting operations to comply with the new law.
Banking and fintech concerns
Last week, banks and fintech companies met with the Ministry of Electronics and IT and the Department of Financial Services to seek clarity on how to enforce the law. They requested sufficient time to develop systems that can track and block payments related to banned money games.
Under the Act:
- Advertising money-based games is prohibited.
- Banks and financial institutions cannot process payments for such games.
- Violations may lead to two years in prison and fines up to ₹50 lakh.
- Facilitating financial transactions for money games could bring three years in jail and fines up to ₹1 crore.
- Repeat offenders face harsher penalties of three to five years in prison and fines up to ₹2 crore.
Industry impact
Several major gaming firms have already shut down their money-based services. However, regulators face the challenge of cracking down on offshore platforms that continue to operate illegally.
Industry estimates suggest that nearly 45 crore Indians lost around ₹20,000 crore in 2024 through online money gaming — a scale of loss that officials say justifies stringent regulation.
Vaishnaw assured industry leaders that the government would balance player protection with opportunities for growth in eSports, skill-based games, and innovation in India’s fast-growing gaming ecosystem.
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