India is set to roll out its first-ever national framework for regulating online gaming. Union Information and Technology Minister Ashwini Vaishnaw confirmed that the Online Gaming Act will officially come into effect on October 1, 2025. The law introduces sweeping changes by making online real-money gaming a cognizable and non-bailable offense, regardless of whether such games are classified as games of skill or chance.
Minister Vaishnaw emphasized that the government has maintained a consultative approach throughout the process of drafting and finalizing the rules.
“We’ve been engaging with the industry for almost three years now. After the law was passed, we resumed discussions with all stakeholders, including gaming companies, banks, and other relevant entities,” he said.
Before October 1, one final round of consultations will be held with the industry. Vaishnaw also noted that the government remains open to granting more time if businesses request an extension, reiterating that policy-making is being carried out in a collaborative manner.
The Online Gaming Act, passed in August 2025, marks a paradigm shift in India’s regulatory framework for the gaming industry. It is the first piece of national legislation to criminalize online real-money gaming, cutting across previous distinctions between games of skill and games of chance.
Criminalization of Online Real-Money Gaming: Offering or participating in such games is now a cognizable, non-bailable offense.
Uniform National Framework: Ends the patchwork of State-level laws and judicial interpretations that earlier governed the sector.
Legal Clarity: Games of skill, once considered outside the scope of gambling by many state courts, are now explicitly included under the Act if they involve real money.
Until recently, India’s online gaming sector was governed by a mix of state laws and court rulings. States like Tamil Nadu and Karnataka attempted to ban real-money gaming, but such moves often faced legal challenges in higher courts.
By enacting a central law, the government has taken control of the sector, thereby creating a uniform framework for enforcement across India. The Act supersedes earlier interpretations, providing regulators with clear authority to monitor and penalize violations.
The online gaming industry has expressed concerns over the blanket criminalization of real-money gaming, arguing that it may stifle innovation and limit consumer choice.
However, Vaishnaw pointed out that industry stakeholders have been actively involved in the policy dialogue, ensuring their perspectives are heard. The upcoming final consultation round before October 1 is expected to provide companies another chance to voice operational concerns.
Some experts argue that the uncertainty over games of skill—once considered permissible—may affect both domestic startups and international investors in India’s fast-growing online gaming ecosystem.
The implementation of the Online Gaming Act carries significant implications:
Legal Enforcement – Law enforcement agencies will have the authority to take direct action against operators and participants in real-money online games.
Financial Institutions’ Role – Banks and payment companies will play a crucial role in preventing transactions linked to online gaming platforms that fall under the Act.
Consumer Impact – Millions of users who participate in online rummy, poker, and fantasy sports for real money will now face legal risks.
Industry Transition – Gaming firms may pivot towards casual, non-monetary games or e-sports to continue operating without legal exposure.
The Online Gaming Act was introduced in the Lok Sabha on August 20, 2025, and passed within just two days—a reflection of the government’s urgency to regulate the sector.
The speed of its passage indicates the administration’s concern over addiction, financial risks, and data security issues linked with online gaming. By prioritizing this law, the government seeks to create a safer, more transparent digital ecosystem for consumers.
Conclusion
The enforcement of the Online Gaming Act from October 1 marks a turning point in India’s digital regulation landscape. By criminalizing online real-money gaming at the national level, the government aims to bring clarity and enforceability to a sector long governed by fragmented state-level rules.
While concerns remain among industry players, the consultative approach led by Minister Ashwini Vaishnaw suggests ongoing dialogue will continue. Ultimately, the Act may reshape India’s gaming sector, pushing companies to explore new business models while prioritizing consumer safety and responsible digital engagement.