Online Gaming Bill 2025: E-sports brands welcome the move, gaming bodies oppose over industry loss

The monsoon session of the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025 today which seeks to encourage e-sports and social games, but prohibits real money gaming and online betting that carries the potentials of addiction, financial loss, and security risks.

Recognising e-sports as a legitimate sport, Ministry of Sports is also set to make guidelines, run awareness campaigns, while also supporting training academies and research centres. However, the bill bans the online gambling, betting, and real money games that can cause addiction or financial loss.

This will also result in the central government overseeing gaming, categorising games, determining money games, handling complaints, and issuing guidelines.

Putting online gaming on check

As far as the offences and the penalties are concerned, advertising money games will lead up to 2 years imprisonment and/or Rs. 50 lakh fine. Any financial transactions which relates to money games will lead up to 3 years imprisonment and/or Rs.1 crore fine. For the parties or the organisations offering/facilitating online money gaming, the punishment includes up to 3 years imprisonment and/or Rs.1 crore fine.

On the other hand, repeat offences will lead to 3-5 years imprisonment and fines up to Rs. 2 crore while certain offences are cognisable and non-bailable. The bill also allows the officers to investigate, search, and seize digital/physical property linked to offences and gives them the powers to enter, search, and arrest without warrant in certain cases. However, independent or non-executive directors not involved in decision-making are protected in this bill.

Roby John, Co-founder and CEO of SuperGaming has welcomed the government’s stance on differentiating esports from gambling-related formats. “We have always focused on growing the e-sports industry, but the blurred definition of online gaming often puts the video games industry in trouble. With the government now acknowledging this long-pending demand, the video games industry is set to flourish and grow globally,” he says.

The differentiation between the e-sports and money-based games is what seems to have been the major reason for the e-sports brands to receive the idea of the bill positively. “For e-sports in particular, that clarity is essential for growth and credibility. But it could well mark the start of India’s rise as an international esports leader,”Rohit N Jagasia, Co-founder and CEO of Revenant Esports says.

“At present, a mix of state-level restrictions creates inconsistency. With a central framework in place, we can unlock investment, foster innovation, and drive global competitiveness. Once the detailed provisions are made public, we’ll have a clearer sense of its implications for esports,” he further adds.

Highlighting how online gaming was perrcieved for years, Vishal Parekh, CEO of CyberPowerPC India says, "For years, it was wrongly perceived as being tied to betting, gambling, and money matters."

Additionally, he states, “This will encourage players to speak more freely about esports, showcase their talent, and engage more confidently with sponsors, organisations, and most importantly their families, especially parents who have often misunderstood it. With e-sports now finding a place in multi-sport events like the Asian Games 2026, including PC gaming, the momentum is only going to grow. 

A rushed bill that might lead to an industry loss and an illegal market

However, the bill has also received flak from the opposition voices where they highlight how the industry and over 2,000 gaming start-ups and more than 2 lakh IT, AI, and design jobs could be affected from the decision. As per, Karti Chidambaram, 4 lakh jobs may be at risk due to the bill.

As per Mr. Chidambaram, the bill could wipe out $6 billion in investments and push users to offshore platforms. Reportedly, he mentioned that India could lose around Rs. 20,000 crore annually from GST and income tax. Further, there are also concerns that it might lead to an illegal market for the same.

All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS), have written a letter to the Union Home Minister Amit Shah which calling the online skill gaming industry  a “sunrise sector” with an enterprise valuation of over ₹2 lakh crore and annual revenue exceeding ₹31,000 crore which contributes over ₹20,000 crore in direct and indirect taxes annually and is projected to grow at a 20% compound annual growth rate (CAGR), doubling by 2028.

Federations have warned that such a blanket ban would be a “death knell” for the industry, which will destroy jobs and push crores of users towards the path of illegal betting and gambling platforms. 

On the other hand, the bill is also considered to be rushed, and with a lack of consultation from the other industry stakeholders.

"It is critical that the terminology used in the bill be clearly defined for this bill to materialise; particularly, the distinctions between e-sports, online gaming, and online money gaming. The absence of precise definitions has often led to ambiguity and conflation around the term "esports". Such overlaps can create confusion not just for regulators, but also for players, teams, investors, and organisers who are working hard to build this industry," Akshat Rathee, co-founder and MD of NODWIN Gaming says. 

Talking about what should be the further steps, Animesh Agarwal, Co-founder and CEO of S8UL Esports says, "The focus must now be on developing infrastructure such as arenas, bootcamps, education programs, and scholarships to nurture the next generation of talent, whether competing on the world stage or shaping culture as gaming creators."

As a player, Harsh Paudwal aka SOUL Goblin, a BGMI athlete who plays for Team iQOO Soul, says, “As players, we’ve always known the grind behind e-sports, long hours of practice, teamwork, and constant learning. With the government investing in training and structured events, the upcoming generation of athletes will have a much clearer pathway to pursue esports professionally. It is the kind of support that can really take Indian players to the global stage."