Online Gaming Bill: Premise Search Powers, 3-Year Prison, Up To Rs 1-Cr Fine, Distinction For Esports, More Proposals

The much-anticipated Online Gaming Bill, 2025, is set to be introduced in the Lok Sabha today, and it is already stirring controversy. The draft law grants sweeping powers to Government officials, including the ability to search and arrest individuals if suspected of involvement in prohibited online gaming activities.

Powers To Authorities Raise Concerns

According to the draft, as seen by ABP Live, officials will have the authority to enter premises or digital spaces and override security controls to investigate computer systems, servers, or devices suspected of hosting or enabling illegal gaming operations. The bill defines “any place” broadly, covering physical locations like buildings and vehicles as well as digital assets such as electronic records, storage devices, and virtual spaces.

"For the purposes of this section, “any place” shall include any premises, building, vehicle, computer resource, virtual digital space, electronic records or electronic storage device and the officer may, if necessary, gain access to such computer resource, virtual digital space, electronic records or electronic storage device by overriding any access control or security code, where such code thereof is not available," the bill states.

Violations carry strict penalties. Anyone running, assisting, or abetting banned online gaming services could face up to three years in prison and fines reaching Rs 1 crore. Those advertising or sponsoring such platforms may be jailed for up to two years with fines of up to Rs 50 lakh. Payment intermediaries facilitating such transactions will also be held liable.

Clear Distinction Between Esports And Gambling

The legislation seeks to draw a clear line between esports and money-based gaming. Esports will be recognised as competitive, skill-based digital sports conducted under structured rules and events. As per the bill, outcomes in esports depend entirely on a player’s ability, including physical dexterity and mental strategy.

By contrast, “online money games” are defined as any platform where players stake money with the expectation of financial returns. These will face a blanket ban, alongside advertisements or promotions encouraging such participation.

Esports Industry Reacts 

Leaders in the esports ecosystem have welcomed the Government’s intent but flagged the need for precision. Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, said, "The Government’s intent to recognise and promote esports, as highlighted in the recent bill, is an encouraging step towards building a structured and globally competitive ecosystem. However, for this vision to truly materialise, it is critical that the terminology used in the bill, particularly the distinctions between esports, online gaming, online social gaming, and online money gaming, be clearly defined and uniformly understood."

Animesh "Thug" Agarwal, Co-founder and CEO of S8UL, called the move historic, stating, "This bill marks a historic turning point for Indian esports. By drawing a clear line between skill-based competitive gaming and betting, it safeguards the integrity of our ecosystem while opening doors for structured growth."

Aim Of Online Gaming Bill

The bill also proposes creating a central regulatory authority to oversee compliance, ensure policy alignment, and foster innovation. With the President’s recommendation already secured under Article 117 of the Constitution, the legislation will now be debated in both Houses of Parliament.

If passed, the Online Gaming Bill could reshape India’s digital policy landscape, simultaneously cracking down on money-driven gaming while giving esports the recognition and institutional support needed to thrive on a global stage.