New online gaming law takes effect, money games banned from today

The Promotion and Regulation of Online Gaming Act, 2025, passed by Parliament in August, came into effect on Wednesday, prohibiting online money games across the country, reported TOI.

The law aims to curb social and financial risks linked to online gambling, including reports of suicides among players who suffered heavy losses. Authorities had also raised concerns about online gaming platforms being misused for money laundering and terror financing.

The online gaming industry, which previously derived most of its revenue from money-based play, has begun realigning with the new legal framework. Leading players such as Dream11, Games24x7, MPL, and WinZO have discontinued money games and shifted towards eSports, social gaming, and other engagement-led formats, reported TOI.


Government’s push for eSports
Information Technology Minister Ashwini Vaishnaw said the new law marks a turning point for the sector. “We have observed instances of money laundering as well as terror support. And that’s why we have kept it.... This was clearly visible to the industry also. Had they taken good and effective steps to prevent the harm, obviously things would have been different,” TOI quoted him as saying.

The minister stressed that while money games are being phased out, the focus on eSports and social gaming offers new opportunities. He added that online money gaming had become a “serious social and public health issue, with proven significant negative impact on society,” but the industry still holds potential to help India emerge as a global hub for game development.

(With inputs from TOI)