India Passes the Online Gaming Promotion and Regulation Bill, 2025: What It Means for Esports and Real Money Gaming

The Lok Sabha has passed the Promotion and Regulation of Online Gaming Bill, 2025, despite protests from opposition parties. This landmark legislation aims to regulate and promote India’s online gaming sector, providing clarity for esports while imposing strict restrictions on real money gaming platforms.

Key Highlights of the Bill

The bill proposes the establishment of a central regulatory authority to oversee four main categories:

1. Esports

2. Educational Games

3. Social Gaming

4. Real Money Gaming

The “Prohibitions” clause prohibits anyone from offering, facilitating, or promoting online money games. Banks and financial institutions are also barred from processing transactions related to these services.

The “Offences and Penalties” clause specifies that service providers found offering real money games may face up to three years in prison or fines of up to Rs 1 crore. Advertising such platforms can lead to up to two years in prison or fines of Rs 50 lakh. The government cited social, financial, and psychological harms, particularly among young people and economically disadvantaged groups, as reasons for these strict measures.

Impact on Cricket and Sports Sponsorship

The legislation could significantly affect Indian cricket, which has seen a surge in sponsorships from real money gaming companies. Dream11, for example, contributes roughly Rs 358 crore as a team sponsor, while My11Circle holds IPL fantasy rights worth Rs 625 crore over five years. Many top cricketers also endorse these platforms personally.

Sports lawyer Vidushpat Singhania commented:
"Cricket remains immensely popular, so sponsors will continue to support the sport. However, personal endorsement opportunities may decrease, and fan engagement might decline. Fantasy apps could switch to subscription-based models, though revenues may drop."

A Boost for Esports

For the esports industry, the bill is considered a major breakthrough. Akshat Rathee, Co-founder and MD of NODWIN Gaming, stated:
"The government's recognition and promotion of esports is a positive step towards building a structured and globally competitive ecosystem."

With esports preparing for its Olympic debut in 2027, the bill provides legitimacy and regulatory clarity, potentially ushering in a new era of gaming in India.

Conclusion

The Promotion and Regulation of Online Gaming Bill, 2025 represents a critical step in shaping India’s gaming landscape. While it imposes strict rules on real money gaming, it legitimizes esports and skill-based gaming, offering a framework for growth and international recognition. This bill could redefine the future of gaming and sports sponsorships in India.

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