India focuses on eSports growth as Ashwini Vaishnaw meets gaming companies

In a significant step towards enhancing the gaming landscape, Union IT Minister Ashwini Vaishnaw convened a meeting with key players from the online gaming sector on Monday. The primary agenda was to discuss strategies for protecting users’ finances while fostering the growth of eSports and social games. This meeting follows the recent passage of The Promotion and Regulation of Online Gaming Act, 2025, which imposes a ban on all online money-based games while simultaneously promoting eSports and skill-based gaming. The legislation has been approved by the President and is set to take effect once officially announced by the government. Discussions at the meeting centered around ensuring a seamless transition for both players and the gaming industry, with a strong emphasis on safeguarding users’ funds. Officials indicated that numerous gaming companies are already taking proactive measures to align with the new regulations. Last week, banks and fintech companies engaged in discussions with the Department of Financial Services and the Ministry of Electronics and IT, seeking clear directives on implementing the law. They also expressed the need for adequate time to develop systems capable of monitoring and blocking transactions associated with online money games. The new legislation enforces a strict ban on advertising money-based games, and financial institutions are prohibited from processing payments for these activities. Violators of the law could face severe consequences, including up to two years in prison and fines reaching ₹50 lakh. Facilitating financial transactions for money games carries even harsher penalties, potentially leading to three years of imprisonment and fines of up to ₹1 crore. Repeat offenders may face imprisonment of three to five years and fines up to ₹2 crore. Despite these stringent regulations, several prominent online gaming firms have voluntarily ceased their money-based services. The government must also tackle the ongoing challenge of foreign online gaming platforms, with industry estimates indicating that around 45 crore individuals in India lost approximately ₹20,000 crore last year due to online money gaming. This underscores the urgent need for comprehensive regulation in the sector.