Govt Bans RMGs, Backs E-Sports Amid Enforcement Doubts

Online Gaming Act

India has taken a tough stand on online gaming with the introduction of the Promotion and Regulation of Online Gaming Act. The new legislation seems to ends the long-standing debate of skill versus chance by banning all forms of real money games (RMGs) outright.

It signals a significant change in policy safeguarding people from the threats of unregulated platforms.

The law intended to tackle addiction, financial losses, and social harm fuelled by betting and gambling apps.

In 2025 alone, the government banned several such platforms, many of which were accused of promoting unauthorised gambling activities.

The Act introduces three distinct categories of online games — e-sports, social gaming, and RMGs.

On one hand, e-sports and social gaming will be promoted and supported, on the other hand, RMGs and their advertisements face a total ban.

IT expert Nitin Pandey, who has closely observed the online gaming business, described the bill as a watershed moment by clearly separating money games from e-games.’

He explained that money games required participants to pay through banking and payment gateways, often trapping users in cycles of addiction and loss.

Pandey said: ‘Platforms like Dream11, Rummy, and PokerBazi were marketed as skill games, but in reality, they pushed people into financial ruin and even self-harm.’

Pandey welcomed the government’s move to recognize e-sports. He said: ‘Games like FIFA represent true competitive gaming, where skill and strategy matter, not the amount of money spent.’

He said that there was need to promote such tournaments on the lines of international events in the U.S. and U.K.

However, the law has also raised concerns. Supreme Court lawyer Virag Gupta pointed out that online gaming falls under the State List.

Gupta said that states like Tamil Nadu, Kerala, and Telangana already enacting their own laws. He noted that the legislation aims to ban money gaming. But he added that there are doubts about its enforcement, especially against foreign companies.

Gupta questioned the central government for not consulting the states before bringing the Act. He said this was problematic given its federal implications.

Gupta also raised concerns about foreign gaming companies, saying they are making huge profits in India without paying taxes.

He said. ‘The law has no detailed provisions to tackle this issue. The UN Secretary-General once described online gaming as the second-biggest pandemic after climate change, and yet crores of Indians may continue to suffer from this online games syndrome.’

According to him, while the law seeks to validate and boost the gaming industry, it fails to address key risks.