India's recent change in legislative approach through the Promotion and Regulation of Online Gaming Act, 2025 ("Act") marks a milestone in the regulation of the gaming industry. While the Act classifies
online games into categories such as Esports, Online Social Games, and Online Money Games, it imposes a blanket ban on Online Money Games.
As India's gaming landscape matures and moves towards a complete ban on online money games the conversation must now move beyond merely classifying and promoting non-money games to acknowledging the pressing social imperative of fostering a responsible gaming environment within the volatile sphere of online money games.
A key recommendation would be to retain the distinction between 'games of skill' and 'games of chance' based on judicial precedents and legitimizing games of skill with monetary stakes under strict regulatory oversight. Avoiding blanket bans and promoting responsible gaming serves the purpose of ensuring social wellbeing while tapping into the vast economic potential of the industry.
Responsible gaming, in this context, can be effectively promoted by adopting measures aligned with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 ("IT Rules"). These IT Rules envisage the setting up of an Self-Regulatory Body operating under governmental supervision, incorporating key features such as mandatory registration of permissible online games, disclosure obligations, and enforcement mechanisms.
They also prescribe essential player protection measures including age verification, deposit limits, self-exclusion options, and real-time alerts to curb excessive play or spending. Similar safeguards have proven effective in jurisdictions with well-regulated gaming ecosystems such as Singapore and South Korea.
Accordingly, the licensing framework introduced under the Act could be leveraged to facilitate the controlled operation of skill-based online money games under the supervision of the designated regulatory Authority.
Public awareness and player education are crucial for responsible gaming. Regulators and industry stakeholders can collaborate to raise awareness on issues such as addiction across all online games, including e-sports and social games.
Operator accountability can be ensured through mandating transparent policies, dispute resolution frameworks, and contributions to rehabilitation initiatives for affected players. The United Kingdom for example, imposes a statutory fee on licensed operators that is used to fund research, prevention, and treatment of gambling harm.
Responsible gaming is not a moral choice but a necessity in the present framework to avoid players from accessing offshore or unsafe platforms. The gaming industry holds a large amount of economic potential and the best approach is to ensure controlled and responsible participation over a complete ban.
