section 20
Power to remove difficulties.
The Promotion and Regulation of Online Gaming Act, 2025Criminal202521 sections5 chapters
Chapter VI MISCELLANEOUS
Statutory text
- (1) If any difficulty arises in giving effect to any provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may be necessary or expedient for removing the difficulty.
- (2) No order under sub-section (1) shall be made after the expiry of a period of two years from the date of the commencement of this Act.
- (3) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. STATEMENT OF OBJECT AND REASONS The unprecedented expansion of information and communication technologies in recent years has resulted in the emergence of new forms of digital entertainment and competitive participation, most prominently in the form of online gaming. These activities have become an important means of engagement for the youth of the country. 2. The online gaming sector has emerged as one of the fastest-growing components of the creative economy, contributing significantly to innovation, employment generation and export earnings. India possesses a large pool of skilled young professionals, strong technological capabilities and a rapidly growing domestic market, which together provide an opportunity for the country to assume a leadership role in the global value chain of online gaming. 3. At present, the online gaming sector ecosystem has multiple segments. These include e-sports; online social games including casual games; and education games; and online money games. The sector operates without a dedicated institutional mechanism for strategic support, co-ordination and capacity building. The absence of an enabling legal framework has adversely impacted the sector’s assured growth, development of common infrastructure, provision of specialised training and research in emerging technologies in the sector. Therefore, there is an urgent need to establish a structured mechanism for policy formulation, stakeholder engagement and facilitation of development of the sector in a transparent and coherent manner. 4. Parallelly, the unchecked and widespread proliferation of online money games which readily accessible through mobile devices, computers, and the internet, and offering monetary returns in exchange for deposited funds has led to grave social, economic, and psychological consequences across the country. These platforms often promote compulsive and addictive behaviour, resulting in financial ruin, mental health disorders, and increasing incidents of fraud and exploitation. 5. A significant number of young persons and economically vulnerable individuals have been adversely impacted by the seamless availability of these games, driven by the low cost of internet access, the ubiquity of mobile and computing devices, and the ease of app-based participation. This problem is further exacerbated by aggressive promotional campaigns, including the use of celebrity endorsements, which enhance the appeal and reach of such platforms. 6. The algorithms used in online money games are often opaque and may be designed to manipulate user engagement surreptitiously. These games can also be operated by bots or undisclosed agents, undermining fairness and transparency. Reports and studies, both national and international, have highlighted the strong association between such games and compulsive behaviours, psychological distress, financial hardship, and the disruption of family and social life, thereby posing a serious public health risk. 7. Beyond the individual, the proliferation of online money games had deleterious affect on families, society, and the economy. In certain cases, these platforms have been linked to illegal activities including money-laundering, financial fraud, the financing of terrorism, and use as messaging platform for terrorist and terrorist organisations, thereby affecting the security and sovereignty of the State. 8. A plethora of online money gaming service providers operating from offshore locations often circumvent state-specific regulations, evade taxation, and create enforcement challenges pertaining to extra-territorial concerns for domestic authorities and has raised complex challenges with respect to user safety, consumer protection, cross-border operations, and inter-State regulatory inconsistencies. 9. Considering the deleterious and negative impact of online money games on the individuals, families, society and the nation as outlined in the foregoing paragraphs and given the technical aspects including the very nature of the electronic medium used for online money games, the algorithms applied and the national and transnational networks involved, it is prudent and practical in the interest of general public to completely prohibit the activity of online money gaming, rather than attempts to regulation. 10. In light of the scope of the development of online gaming sector on one hand, it requires support and facilitation for an upright growth and on the other hand due to increasing social, financial, and regulatory risks posed to the interest of the general public by the online money gaming sector, including those relating to consumer protection, public health, public order, and national security, it is expedient in the public interest for the Union Government to assume control over this emerging industry. 11. There is a need to clearly delineate and categorise the different types of online games that are being offered and also to ensure that an appropriate enabling and legal framework is created to address the issues and concerns of each of the sub-sectors of online gaming. 12. Accordingly, the Bill proposes to establish a robust legal framework, not only prohibit online money gaming in the country but also to regulate, promote and encourage the sector for innovation and economic growth and ensure a developed, safe and responsible digital environment for all citizens. NEW DELHI; ASHWINI VAISHNAW. The 19th August, 2025.
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