Ashwini Vaishnaw Meets Gaming Firms on eSports, Player Safety

IT Minister Ashwini Vaishnaw recently met with representatives from leading gaming companies to discuss player safety and the development of a healthy eSports ecosystem. This comes after the Online Gaming Bill, 2025 was passed in Parliament and received Presidential assent. The Act, once enforced, aims to regulate online gaming in India, banning money-based games while encouraging skill-based gaming and eSports.

Overview of the New Law

The Promotion and Regulation of Online Gaming Act, 2025 bans money-based online games and promotes skill-based gaming and eSports. The law prohibits advertising of banned games and imposes strict penalties for violations:

• Up to 2 years in jail and fines of Rs 50 lakh for individuals

• Financial facilitators may face 3 years imprisonment and fines of up to Rs 1 crore

• Repeat offenders could face 5 years jail and fines up to Rs 2 crore

The law aims to protect players from financial losses and encourage responsible gaming practices.

Banks and Fintech Seek Clarity

Prior to the ministerial meeting, banks and fintech companies consulted with the Department of Financial Services and the IT Ministry. Their concerns focused on:

• Receiving clear implementation guidelines

• Adequate time to develop systems to block or monitor transactions related to banned games

These discussions aim to ensure a smooth transition under the new regulatory framework.

Industry Adjustments and Challenges

Many online gaming firms have already voluntarily shut down money-based services to comply with the law. However, the government faces challenges in curbing foreign-based platforms that continue to attract Indian players.

Industry data highlights the urgency: in 2024, around 45 crore Indians lost nearly Rs 20,000 crore through money-based gaming. This underscores the need for strong regulatory measures to protect citizens from financial risks.

Promoting Responsible Gaming and eSports

The government, gaming industry stakeholders, and financial institutions plan to collaborate closely to ensure smooth enforcement of the law. Key objectives include:

• Promoting eSports as a competitive and skill-based field

• Safeguarding players’ funds against unauthorized or illegal transactions

• Ensuring responsible gaming practices are adopted by both developers and users

These measures aim to balance growth in the gaming sector with player protection, fostering a safe and transparent eSports ecosystem in India.

Conclusion

The meeting between IT Minister Ashwini Vaishnaw and gaming companies represents a step forward in creating a regulated and safe online gaming environment. With the Online Gaming Act, 2025, India is set to ban money-based games, promote skill-based eSports, and safeguard players from financial risks. Collaboration between the government, financial institutions, and industry stakeholders will be key to successfully implementing these measures while supporting the growth of a competitive gaming ecosystem.