The legislation formally recognises esports as a sport, with the Sports Ministry tasked with setting guidelines for events, training academies and technology platforms. It also promotes the development of social and educational games with age-appropriate content rooted in Indian values.

In contrast, online money games, whether based on skill, chance or both, will be completely prohibited. These cannot be offered, advertised or promoted, and banks will be barred from processing related payments. Existing money gaming platforms will be blocked under the Information Technology Act, 2000.

A National Online Gaming Authority will be created to regulate the sector, categorise and register games, determine whether a game qualifies as a money game, and address complaints.

The Bill prescribes strict penalties, including up to three years' imprisonment and fines of Rs 1 crore for facilitating money games. Advertising such games could draw a penalty of Rs 50 lakh or up to two years in jail. Repeat violations may result in harsher penalties of three to five years' imprisonment and fines up to Rs 2 crore.

Introducing the Bill, Electronics and IT Minister Ashwini Vaishnaw said it was aimed at protecting society while supporting legitimate gaming. He cited cases of addiction, fraud and financial distress caused by money games, and pointed to links with money laundering and terror financing. He also noted that 32 suicides had been reported in the last 31 months due to online money gaming.

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