New Online Gaming Rules: The playground of online gaming has changed today. The highly talked about Online Gaming Act, 2025, which was passed by the parliament, will take effect from 1st October, 2025. The bill was passed in August and sparked discussions in gaming communities and business circles across the country. The act directly impacts the revenue streams of online gaming applications that offer players a chance to win real money. The act has impacted multiple online gaming platforms, such as Dream 11 and their ability to generate revenue.
New Online Gaming Rules Kick Into Effect- What Changes From October 1st?
The new online gaming rules have officially come into effect. This act places a complete ban on applications where players wager real money in hopes of a profit. Some popular applications that have taken a hit from these new rules include Dream 11, Games24x7, and MPL, among others.
Under the new online gaming rules, every online gaming application that promised players a chance at winning real money has to either pivot to a different business model or stop operation. The ban does not make any distinction between apps that promote themselves as skill-based games; any game where people can wager and win real money is banned.
The Online Gaming Act, 2025, also bans the promotion and advertisement of money-based games. It also restricts financial institutions from processing transactions supporting the online gaming applications.
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What are The Reasons for the Online Gaming Act, 2025?
IT minister Ashwini Vaishnav addressed the new rules regarding online gaming in India. In his statement to TOI, he said that the ban comes as a result of the negative impacts of the games that promise players a chance at winning real money. He mentioned money laundering as a clear reason behind the blanket ban on real money games.
“We have observed instances of money laundering as well as terror support. And that’s why we have kept it…. This was clearly visible to the industry also. Had they taken good and effective steps to prevent the harm, obviously things would have been different,” Ashwini Vaishnav told TOI.
Do the New Gaming Rules Impact Esports?
No, the new online gaming rules will not impact Esports. The Online Gaming Act recognises the diverse nature of the online gaming space and makes a clear distinction between educational, skills-based games and online gambling and betting applications. Vaishnav has also touched on the potential of E-sports and the role it will play in helping India grow as a game development hub.
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