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The Promotion and Regulation of Online Gaming Act, 2025, will come into effect on October 1, with the government ready to release subordinate legislation for the law, IT Minister Ashwini Vaishnaw said Thursday. The Act outlaws all forms of online real money games such as Dream11, Mobile Premier League, and Pokerbaazi, while promoting competitive e-sports.
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The implementation of the law is, at this point, a customary procedure, as companies in the sector had already compiled with it, even before it received Presidential Assent last month, and had suspended their real money offerings. Some had pivoted to other services, such as wealth management and short form videos.
The Act has been drafted over national security concerns related to online gaming platforms, including the use of digital wallets and cryptocurrencies for money laundering and illicit fund transfers, these platforms serving as potential messaging and communication grounds for terror organisations, and offshore entities circumventing Indian tax and legal obligations, among others.
The government will prohibit any person from offering online games in India, failing which they could be imprisoned for up to three years, and penalised Rs 1 crore. Those promoting such platforms, such as social media influencers, will also face jail time of two years, and a penalty of Rs 50 lakh. The government will also prohibit banks and financial institutions from facilitating financial transactions on such platforms.
IT Minister Vaishnaw also said that the data protection rules will be released before September 28. The rules are crucial for the operationalisation of the Digital Personal Data Protection Act 2023, which was enacted nearly two years ago, but is yet to be implemented due to the absence of the rules. A draft version of the subordinate legislation was released in January this year, with the government since holding a series of consultations with various stakeholders.
© The Indian Express Pvt Ltd
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