‘Online Gaming Bill a double-edged sword; balances growth, accountability’

New Delhi: The legislation banning real-money online games has been welcomed by a large section of the industry as a positive step that safeguards the integrity of the ecosystem, but dissenters stated that blanket restrictions may stifle segments of the gaming market.

The Lok Sabha on Wednesday passed a legislation to ban online games played with money as it looks to check rising instances of addiction, money laundering and financial fraud through such applications.

The Promotion and Regulation of Online Gaming Bill, 2025, seeks to prohibit advertisement related to online money games and bars banks as well as financial institutions from facilitating or transferring funds for any such games.

The Bill was passed by a voice vote after brief remarks by Minister of Electronics and Information Technology Ashwini Vaishnaw amid protests in the House by Opposition members.

NODWIN Gaming Co-Founder and MD Akshat Rathee said the government’s intent to recognise and promote esports is an encouraging step towards building a structured and globally competitive ecosystem. “However, for this vision to truly materialise, it is critical that the terminology used in the Bill, particularly the distinctions between esports, online gaming, online social gaming, and online money gaming, be clearly defined and uniformly understood.

“The absence of precise definitions has often led to ambiguity and conflation around the term ‘esports’. Such overlaps can create confusion not just for regulators, but also for players, teams, investors, and organisers who are working hard to build this industry,” he noted.

Animesh Agarwal, Co-Founder and CEO of S8UL, said by drawing a clear line between skill-based competitive gaming and betting, the Bill safeguards the integrity of the ecosystem while opening doors for structured growth.

Esports is a sport built on skill, discipline and years of grind, he said, adding that with government recognition and the right infrastructure,

“The focus must now be on developing infrastructure such as arenas, bootcamps, education programs, and scholarships to nurture the next generation of talent, whether competing on the world stage or shaping culture as gaming creators,” he said.

SuperGaming CEO and Co-Founder Roby John said: “We have always focused on growing the esports industry, but the blurred definition of online gaming often puts the video games industry in trouble. With the government now acknowledging this long-pending demand, the video games industry is set to flourish and grow globally”.

Ananay Jain, Partner at Grant Thornton Bharat, said while the legislation provides a clear regulatory environment that reduces legal uncertainty and fosters innovation, there are challenges and potential negative impacts.

“By setting clear boundaries and imposing strict penalties on operators, advertisers, and financial intermediaries associated with prohibited games, it enforces accountability and safeguards users. However, there are challenges and potential negative impacts,” he said.

Calling the Bill a double-edged sword, Jain said the blanket restrictions on certain real-money games may stifle segments of the gaming market that were previously generating significant revenue.