The Promotion and Regulation of Online Gaming Bill, 2025
The Lok Sabha has passed The Promotion and Regulation of Online Gaming Bill, 2025, aiming to prohibit online money gaming in India. This decision has stirred significant reactions within the online gaming industry.
Key Objectives and Implications
- Prohibition of Online Money Gaming:
- The Bill seeks to curb online money gaming due to its social, economic, and psychological impacts, such as addiction and financial distress.
- It aims to address issues of exploitation and fraud associated with these platforms.
- Violations could lead to imprisonment for up to three years, a fine of up to ₹1 crore, or both.
- Advertisements and transactions related to money games are also punishable.
Concerns and Recommendations
- Debate on Prohibition:
- The addictive nature of online gaming and its consequences are acknowledged, but whether prohibition is the optimal solution is debatable.
- The gaming industry is a rapidly growing sector with potential for India to become a global hub for game development.
- Industry Statistics:
- Skill-gaming companies have an enterprise value exceeding ₹2 trillion.
- They have attracted over ₹25,000 crore in foreign direct investment.
- Suggested Approach:
- Consultations with stakeholders and a regulatory regime might better serve India's interests than a complete prohibition.
- Prohibition could drive the industry underground, increasing risks of fraud and exploitation, and reduce government tax revenue.
Framework for Regulation and Promotion
- Establishment of Authorities:
- The Bill proposes creating an authority to regulate and promote online gaming.
- The central government plans to recognize and register esports and form guidelines for esports events.
- Development Initiatives:
- Provisions for setting up training academies and research centers for esports advancement.
- Facilitation of social game development.
Overall, while the Bill provides a legal framework to promote and develop online gaming, its prohibition on online money games does not align with its progressive intent.
