The government’s proposed online gaming Bill seeks to draw a clear distinction between e-sports and social electronic games on one hand, and also proposes to set up dedicated regulator for online gaming, sources told Moneycontrol.
The draft bill "Promotion and Regulation of Online Gaming Act, 2025' by the Ministry of Electronics and Information Technology (MeitY) is aimed at promoting competitive gaming as a legitimate sport, while curbing illegal betting practices.
According to sources, the government is looking to encourage the rapidly growing e-sports industry by providing a clear legal framework to govern competitions, recognition and compliance, sources said.
Regulator for e-sports
The draft Bill may propose the establishment of a “National e-Sports Authority” to regulate and promote competitive gaming.
“The Authority shall regulate and promote e-sports in India and frame rules for fair play, standards and compliance,” a copy of the bill seen by Moneycontrol states.
It may also be tasked with ensuring that these activities are conducted within the framework laid down under the law.
The regulator will also coordinate with State governments and reconigse sporting federations for integration of e-sports withing policy initiatives, sources added.
Penalties for betting
The draft Bill will so introduce penal provisions to curb wagering in competitive gaming.
“Any person found promoting or engaging in betting in e-sports or social electronic games shall be punishable with fine and imprisonment,” the draft Bill provides.
The provision is designed to act as a deterrent to those attempting to misuse competitive gaming platforms. By explicitly defining the offence and linking it to punishment, the draft aims to close gaps that previously existed in enforcement.
Advertising of money games prohibited
The draft Bill also prohibits the promotion of money games. “No person shall advertise, promote or facilitate any money game or betting activity in any form, including through online platforms or intermediaries,” it says.
The ban covers both direct and indirect advertising of money games, ensuring that such activities are not marketed to consumers through online or offline channels.
Defining e-sports
A key provision of the draft can be the formal separation of e-sports and money games. E-sports will be defined as “competitive games of skill played in virtual environments with rules and recognition”, while money games are described as “games played online with stakes or wagering of money or money’s worth.”
This definitional clarity is intended to provide a legal boundary between skill-based play and games of chance involving wagers.
The draft bill states, “The absence of a legal definition has led to ambiguity in enforcement,” and argues that the proposed distinction will bring India’s framework closer to international norms.
The draft Bill emphasises the potential of e-sports to contribute significantly to the economy. “The growth of e-sports can attract substantial foreign and domestic investment, spur job creation, and position India as a global hub for competitive gaming,” it notes.
It adds that the sector has the potential to create direct and indirect employment across game development, broadcasting, event organisation and ancillary services.
“With the right regulatory framework, e-sports can be harnessed as a driver of innovation, entrepreneurship and employment for the youth of India,” it says.
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