Online gaming bill: What does it mean for sports and sports enthusiasts?

India is making some big moves in the world of online gaming with the introduction of the Online Gaming Bill. Known as the Promotion and Regulation of Online Gaming Bill, 2025, the new proposed law, which was passed by the Cabinet on Tuesday, April 19, seeks to encourage e-sports and social games. But, at the same time, the bill also prohibits real money gaming and online betting, which could lead to addiction, financial loss, and security risks.

The bill, which is now headed to the parliament, is being seen as a game-changer for competitive gaming, players, and the industry as whole. So what does it mean for e-sports, the users and the cricket industry at large, which has seen platforms like Dream 11 and MyCircle acting as key sponsors.

Online Gaming Bill: What does it do for e-sports?

Under the Online Gaming Bill, e-sports will now be recognised as an official form of competitive sport in India. The Union ministry of Sports will now develop guidelines and standards for the conduct of esports events in the country, as well as establish training academies, research centres and more.

The bill is also envisioning incentive schemes, awareness programs and the integration of e-sports into the broader sports policy.

Online Gaming Bill: How does it aim to safeguard users?

The Online Gaming Bill also cracks down on harmful gaming practices. This means that there will be a stop on online gambling, betting and real money games that can cause addiction and lead to financial loss. By this, the users will be safeguarded from fraud, money laundering and other online risks. Banks and payments have been barred from processing payments related to such games.

Online money games that are active in the country at the moment, have been blocked under the Information Technology Act, 2000.

Online Gaming Bill: What does it mean for the cricketing industry?

The Online Gaming Bill could spell the end of 'real money gaming platforms' that have high stakes in the cricketing industry. The bill means that multi-billion dollar fantasy gaming industries will take a major hit in review. Sources have told India Today that the overall ad sector could take a hit of Rs. 17,000 Crore hit with the bill coming into play. Of this, a huge chunk of revenue comes from websites like Dream 11 and MyCircle11.

Dream11 brought the Indian team's title rights for about USD 44 million (Rs 358 crore approx). My11Circle brought IPL fantasy gaming rights for a fee of Rs 625 crore for five years (Rs 125 crore approx annually), according to PTI.

As per "PROHIBITIONS" clause: "No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service.

"No bank, financial institution, or any other person facilitating financial transactions or authorisation of funds shall engage in, permit, aid, abet, induce or otherwise facilitate any transaction or authorisation of funds towards payment for any online money gaming service."

This will start a chain reaction that could affect the sports sponsorship market, including individual players' sponsorship and franchise-based domestic leagues of disciplines like kabaddi and football.

Online Gaming Bill: What are the punishments?

The "OFFENCES AND PENALTIES" clause states that real money gaming is a criminal offence, which can lead to jail and a huge fine for the service provider.

Clause 9. (1) reads "Any person who offers online money gaming service in contravention of section 5 shall be punished with imprisonment for a term which may extend to three years or with fine which may extend to one crore rupees or with both.

Clause 9. (2) reads: "Any person who makes or causes to make advertisement in any media, in contravention of section 6, shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to fifty lakh rupees or with both.