Govt should have considered forward-looking options for money games

The Lok Sabha on Wednesday passed The Promotion and Regulation of Online Gaming Bill, 2025. The Bill, among other things, seeks to prohibit online money gaming in the country. Predictably, the move has sent the online gaming industry into a tizzy. As reports suggest, there are thousands of high-skill jobs at stake. The Bill’s statement of objects and reasons notes that the widespread proliferation of online money games, easily accessible on mobile devices and computers, has led to grave social, economic, and psychological consequences across the country. These platforms tend to promote addictive behaviour, which results in mental-health issues and financial ruin. Such platforms have also led to an increase in instances of exploitation and fraud. Thus, instead of regulating this market segment, it is in the public interest to prohibit it.

 

Any person offering online money-gaming service in contravention of the provisions of the Bill shall be punished with imprisonment extending up to three years, or a fine of up to ₹1 crore, or both. Taking out advertisements in the media and engagement in transactions related to money games shall also be punished. Evidently, if the provisions are implemented in their current form, it will be curtains for the formal online money-gaming business in India. To be fair, it is hard to disagree that online gaming can be addictive with mental and financial consequences. However, it is worth debating whether prohibition is the most suitable answer to the stated problems. India has a large talent pool of developers creating various kinds of games, and the industry is growing at a fast pace. India can become a global hub for developing online games.

 

According to the industry associations concerned, skill-gaming companies have an enterprise value of over ₹2 trillion and have attracted foreign direct investment worth over ₹25,000 crore . An advisable path for the government would have been to hold wide consultations with stakeholders and experts in the area before introducing the Bill. Instead of prohibiting online money games, a regime of adequate regulation would have served India’s interests better. With outright bans, it is possible that a large part of activity would move underground, which can put those engaged in online gaming at greater risk of fraud and exploitation. Given the penetration of the internet, it will be extremely difficult for the government to monitor and check underground operators. Besides, the government would lose tax revenue.

 

While the prohibition of money games will attract disproportionate public interest for obvious reasons, the Bill also provides a broad formal framework for regulating and promoting online gaming. For instance, the Bill envisages the establishment of an authority for online gaming. The central government is expected to take steps to recognise and register esports with the authority. Guidelines will be formed for conducting esports events. There is also a provision for the establishment of training academies and research centres for the advancement of esports. There are several such provisions to promote and develop online gaming in the country. There are also provisions to facilitate the development of social games. Overall, the bent of the Bill is forward-looking in terms of providing a legal framework for online gaming, which will help facilitate growth and development, but the prohibition of online money games is not in the same spirit.