The Promotion and Regulation of Online Gaming Act, 2025, is poised to reshape India's digital gaming landscape. Electronics and IT Secretary S. Krishnan announced that the Act, which has cleared both houses of Parliament and received presidential assent, will soon be implemented. This legislation aims to regulate the rapidly expanding online gaming industry, which has seen significant growth in recent years. Introduced by Union Electronics and IT Minister Ashwini Vaishnaw, the Act seeks to impose a comprehensive ban on online money games while promoting social, educational, and esports games.
The Act defines esports as online games that are part of multi-sport events, involving organized competitive competitions between individuals or teams. These competitions are recognized under the National Sports Governance Act of 2025 and are played in multiplayer formats with predetermined rules.
The government's move has already impacted the industry, with major online money gaming platforms like Dream11, Pokerbazi, and Rummy Circle halting their money gaming contests.
In response to the new legislation, banks and fintech firms have requested detailed guidelines from the Department of Financial Services and the Ministry of Electronics and IT. They have also asked for a reasonable timeframe to establish systems to monitor transactions related to online money games. The Act provides for stringent penalties, including prison terms of up to three years and fines of up to ₹1 crore for those operating or facilitating such services. Advertising and promotion of these platforms are also penalized, with offenders facing up to two years in jail and fines of ₹50 lakh.
Impact on the Gaming Industry
Minister Vaishnaw emphasized the necessity of these measures to protect families from financial ruin caused by online gambling. He stated, "From time to time, society grapples with social evils. In these circumstances, it is the duty of the government and the Parliament to probe and make laws to control them."
The Act has been met with mixed reactions from industry stakeholders. While some view it as a necessary step to protect consumers, others see it as a challenge to the growth of the online gaming industry.
Deepak Ail, Co-founder & CEO of Dot9 Games, expressed optimism about the Act's potential to nurture original intellectual property that reflects Indian culture. He likened the potential impact of Indian games to that of Indian films, which have become a form of cultural soft power. Sumit Batheja, CEO & Co-founder of Ginger Games, applauded the decision, stating that it allows companies to focus on monetization, retention, and building great intellectual property for India and the world.
Parth Chadha, CEO & Co-Founder at STAN, highlighted the government's decision to separate social gaming and competitive esports from real money gaming as historic. He noted that this move supports specialized authority and skill-building initiatives, which are crucial for the growth of the competitive esports ecosystem and social gaming communities. The Act's passage comes at a time when India's electronics manufacturing sector is experiencing significant growth.
Electronics Manufacturing Growth
Union Minister Ashwini Vaishnaw recently inaugurated the country's first manufacturing plant for tempered glass in Noida, Uttar Pradesh. This facility, a collaboration between Optiemus Infracom and Corning Incorporated, marks a milestone in India's 'Make in India' initiative. With an initial investment of ₹70 crore, the plant will have a capacity of 25 million units per annum, generating direct employment for over 600 people. In its second phase, the facility will scale up to 200 million units per annum, creating over 4,500 direct job opportunities.
The electronics manufacturing sector in India has expanded sixfold over the past eleven years, reaching a production value of ₹11.5 lakh crore. The country has become the second-largest mobile manufacturing nation in the world, with exports exceeding ₹3 lakh crore. This growth has provided direct and indirect employment for 2.5 million people, underscoring the sector's importance to the Indian economy. Minister Vaishnaw emphasized the government's commitment to building global-scale capabilities to support markets with high-quality products.
He stated, "We plan to manufacture every component used in mobile devices right here in India in the near future. We also encourage research and development to take place in India and are working toward becoming a global player." The inauguration of the tempered glass manufacturing facility is a testament to India's growing electronics ecosystem. ICEA chairman Pankaj Mahindroo highlighted the labor-intensive nature of the segment, noting that it offers a significant opportunity for India to meet its large domestic demand and become a leading exporter.
The initiative is expected to create opportunities for micro, small, and medium enterprises (MSMEs) and generate employment. The Online Gaming Act, 2025, and the growth of the electronics manufacturing sector are indicative of India's broader economic trajectory. The country's GDP growth of 7.8% in the first quarter of the financial year 2025-26 demonstrates its stability and innovation-driven economy. Minister Vaishnaw called upon the youth to contribute to the vision of Atmanirbhar Bharat and Viksit Bharat 2047, emphasizing that the world is looking towards India with great expectations.
