New Delhi: The Indian government is set to take a major step in reshaping the country’s fast-growing online gaming sector. On Wednesday, the Promotion and Regulation of Online Gaming Bill, 2025 will be introduced in the Lok Sabha by Electronics and Information Technology Minister Ashwini Vaishnaw. The legislation, listed in Parliament’s business agenda, marks one of the most comprehensive attempts to balance industry growth with responsible regulation.
The bill proposes to promote and regulate online gaming across e-sports, educational games, and social gaming, while firmly prohibiting money-based games that operate without safeguards—especially those crossing state borders or hosted from foreign jurisdictions. Its stated objective is to protect citizens, particularly youth and vulnerable groups, from the economic, psychological, and social risks tied to addictive and high-stake online gaming.
A central feature of the bill is the establishment of a National Online Gaming Authority, which will coordinate policy support, ensure strategic development, and oversee regulatory mechanisms for the sector. The move reflects the Centre’s aim to create a uniform, national-level legal framework for online gaming, ensuring both consumer safety and industry stability.
Safeguarding Citizens and National Interests
The proposed legislation highlights concerns about the impact of online money games on mental health, financial well-being, and data privacy. It also emphasizes the importance of safeguarding the integrity of financial systems and protecting India’s security and sovereignty from unregulated offshore platforms.
Earlier this year, Vaishnaw stressed in Parliament that the government’s digital policies are designed to ensure an “open, safe, trusted, and accountable internet”. He noted that the regulation of financial transactions and user data in the online gaming industry is an integral part of this vision.
Taxation Already in Place
The bill builds on fiscal measures already implemented. Through the Finance Act, 2023, the government imposed a 30% income tax on net winnings from online games, effective from the 2024–25 assessment year. Additionally, from October 1, 2023, the sector has been subject to 28% GST.
To streamline compliance, suppliers of online money games are required to secure a single registration under the Simplified Registration Scheme of the Integrated GST Act, 2017. Offshore operators are also brought under the ambit of Indian tax laws, tightening the government’s grip on cross-border gaming platforms.
Industry and Policy Implications
The introduction of this bill is seen as a significant milestone in India’s approach to online gaming. While the industry has been growing rapidly, it has also faced criticism for its unregulated money-gaming practices, often compared to gambling. By setting clear boundaries and introducing a national authority, the government aims to nurture innovation in safe gaming formats like e-sports and educational apps, while clamping down on risky money games.
If passed, the bill could become a turning point for India’s digital economy, ensuring responsible growth of online gaming in alignment with public health, financial safety, and national security priorities.
