Govt to Soon Announce Guidelines for New Online Gaming Law
“The focus of the discussion was mostly on protecting users’ funds and promoting eSports and social games as well. Points related to orderly transition were also discussed, noting that industry has taken steps to ensure compliance with the Act”: Sources
NEW DELHI: The government on Monday said it would soon notify the guidelines on Promotion and Regulation of Online Gaming Act, 2025, suggesting that there is a need for an orderly transition for gaming companies and measures to protect users’ funds. With the banning of the online money game, several platforms have begun implementing compliance measures in anticipation of the law coming into force, according to sources.
The industry has reportedly taken several measures to ensure compliance with the Promotion and Regulation of Online Gaming Act, 2025, which was cleared by both the houses August 21 and received the President’s assent a day later. In order to address several concerns of the industry mired by uncertainties since the passing of the online gaming legislation, Union minister Ashwini Vaishnaw and his key officials met industry representatives and discussed the future roadmap of the game.
It is also expected that the ministry of electronics and information technology (MeitY) will act as one of the key regulators in this matter. “The focus of the discussion was mostly on protecting users’ funds and promoting eSports and social games as well. Points related to orderly transition were also discussed, noting that industry has taken steps to ensure compliance with the Act,” the sources said.
The new legislation on online money games, however, seeks to “prohibit the offering, operation, facilitation, advertisement, promotion and participation in online money games”. Thus, it specifically targeted firms that offered fantasy sports and online card games entailing the prospect of risking money. “Many people get addicted, lifetime savings evaporate in games, and with the algorithms in use, there may be untold levels of fraud and cheating,” Vaishnaw had argued whilst moving the bill in parliament.
IT secretary S Krishnan also said that the government has been working on a fast-track implementation plan. “The law will come into effect very quickly and all necessary steps are being taken in that regard,” he said on the sidelines of an event here.
Under the new law, providing online money gaming services will attract penalties of up to three years of imprisonment and fines of up to Rs 1 crore. “Advertising or promoting such platforms could result in a two-year jail term and fines of up to Rs 50 lakh,” it said.
