A bill for safe play

The Promotion and Regulation of Online Gaming Bill, 2025, banning online games involving monetary transactions, is a decisive step to protect families, restore accountability, and create a safer digital environment. Critics may argue that the ban could disrupt the burgeoning online gaming sector. But the cost of this ban is marginal, considering the severe financial, psychological, and social harm the games cause.

According to an estimate, 45 crore people are adversely impacted by online money games and have incurred a loss of more than Rs 20,000 crore. It has resulted in household debt, depleted savings, and, in extreme cases, tragic outcomes including suicides. Unlike traditional entertainment, online gambling preys on psychological vulnerabilities, exploiting the desire for quick gains.

Young people are especially at risk. Often, they are unaware of the dangers involved in such games. They access these platforms through parental accounts or peer influence. Such early exposure may lead to long-term addiction, financial instability, and impaired decision-making. Treating gambling as a public health issue, similar to tobacco or alcohol, is both responsible and necessary. It is not only a moral obligation to protect youth, but it is also a long-term investment for the country, which can ensure social and economic stability.

Historically, Indian courts distinguished between “games of skill” and “games of chance,” allowing the former while outlawing the latter. In the digital era, many operators claimed skill-based status to circumvent existing regulations. The new law closes these loopholes, banning all online games with monetary stakes and providing much-needed legal clarity.

Some argue that people should have the freedom to gamble. However, gambling is not purely a private indulgence; it is a social hazard, especially in a country with uneven financial literacy. This ban defines and establishes unambiguous rules and protects individuals, families, and society at large.

Unlike tobacco, whose harms manifest over decades, online real money games can devastate households overnight. Addiction leads to indebtedness, family distress, and in extreme cases, bankruptcy. Therefore, protecting the young population from financial and emotional harm is a moral and economic imperative, as there is an urgent need to tap into the demographic dividend to its maximum potential.

Unregulated online platforms create systemic financial risks. Cross-border illicit flows, money laundering, and fraud can all be facilitated by anonymous digital transactions. These dangers compromise India’s quickly digitising financial system. Due to its digital nature, the online gaming market is fragmented, making it challenging to tax and regulate effectively. It could have unintended economic costs for consumers, regulators, and banks.

Real-money gaming is heavily marketed to the youth. Gamification and reward loops exploit behavioural triggers, increasing the risk of compulsive play. Protecting these demographic safeguards is crucial for both individual well-being and the stability of household finances, which in turn affects the broader economy through reduced debt defaults and consumption disruptions.

Lessons in enforcement

Different countries have adopted diverse approaches. China banned online gambling entirely to curb societal harm, whereas Singapore allows it under strict controls, including entry levies and spending limits. The UK and the US regulate with licensing, age verification, and anti-addiction programmes.

India’s ban aligns with the precautionary principle: nascent, high-addiction industries are tightly restricted until robust regulatory frameworks exist. Protecting citizens and maintaining economic stability are the government’s top priorities right now.

While the ban may disrupt the online gaming sector, it also presents ample opportunity for ethical innovation. Platforms can pivot to subscription-based, ad-driven, or non-monetary formats, engaging users without exploiting vulnerabilities.

This regulatory shift provides India with a chance to reshape its digital identity. By promoting educational, cultural, and skill-based games, the nation can empower users while reflecting Indian values. Technological creativity, combined with India’s storytelling tradition, allows the country to lead in safe and innovative game design, both domestically and internationally. This approach balances economic growth with social responsibility and promotes an ecosystem where innovation thrives without harming citizens.

Effective enforcement is a must. However, offshore platforms and unregulated spaces pose significant challenges. A black market could undermine the intent of the law in the absence of technological blocking, rehabilitation programmes, awareness campaigns, and international cooperation.

Regulatory oversight, public education, and initiatives focused on industry accountability, rehabilitation, and financial literacy are required. These multi-dimensional strategies can mitigate addiction and financial loss while promoting safe digital practices. The ban lays down the solid ground for a safer and sustainable digital ecosystem. The bill is bold and timely, prioritising public health, legal clarity, and economic prudence over short-term disruption.

(The writer is an assistant professor of economics and director, Centre for
Economics, Law and Public Policy, National Law University, Jodhpur)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.