Focus Area
Online Gaming
The Promotion and Regulation of Online Gaming Act, 2025 changed the legal position of online gaming in India. The Firm advises gaming businesses on the Act, on how their games and payment flows are classified under it, and on related regulatory, tax, commercial and cross-border questions, including for operators considering markets such as the United Arab Emirates.
What the law looks like
The Promotion and Regulation of Online Gaming Act, 2025 prohibits online money games, that is, games played by paying or depositing money in the expectation of winning money or other returns. The prohibition applies whether the game is one of skill or of chance, so the distinction that decided earlier litigation no longer settles the question for these games. The Act also bars advertising these games and the facilitation of payments for them, and it provides for criminal penalties. At the same time it promotes e-sports and online social games and provides for a central authority to register and regulate online games.
The practical questions for a business are therefore: whether a game is an online money game, an e-sport or a social game; what changes to the product, payment flow and marketing follow from that classification; how to wind down, refund or restructure existing operations; what continuing exposure there is for earlier periods, including goods and services tax; and how any challenge to a regulatory step should be brought.
Scope of Work
- Classification of games and business models under the Act
- Compliance for e-sports and online social games, and registration questions
- Restructuring, wind-down and player refund arrangements
- Advertising, endorsement and payment-related compliance
- Goods and services tax classification and disputes for earlier periods
- Intellectual property and commercial agreements
- Cross-border operations, including the United Arab Emirates
Questions and Answers
- What is an online money game under the Act?
- In general, an online game in which a player pays or deposits money, or a similar stake, expecting to win money or other returns. The Act applies to such games whether they are games of skill or of chance.
- Does it matter any more whether a game is one of skill or chance?
- For online money games the Act does not turn on that distinction, so the earlier skill-versus-chance case law no longer decides whether a money game may be offered. It remains relevant background and for questions about earlier periods.
- Are e-sports and social games affected?
- The Act treats them differently: it promotes e-sports and online social games, and provides a framework for their recognition and registration. Whether a particular product qualifies depends on how it works, including whether any stake or monetary return is involved.
- Can a business advertise or take payments for online money games?
- The Act restricts both advertising these games and the facilitation of payments for them, and imposes penalties, so marketing, endorsement and payment arrangements need to be reviewed.
- What about tax for earlier periods?
- Goods and services tax questions on gaming supplies, including classification and valuation, can continue to arise for periods before the Act. These are handled as tax disputes before the appropriate authorities.
- Can an Indian business offer games in the UAE?
- Only with the licence and approvals of the relevant UAE authority. Their rules differ from Indian law, and the Firm has written about them.
Related Reading
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