Modi Defends India’s Online Gaming Act 2025 as Courts and Industry React

Prime Minister Narendra Modi has strongly defended the Promotion and Regulation of Online Gaming Act, 2025, calling it essential for protecting families and young people from the harmful effects of money-based digital play. Speaking in New Delhi at a teachers’ event, he declared the measure a “major decision” designed to counter addiction, financial distress, and the breakdown of households linked to online betting-style platforms.

“It is a major decision because countless online games are negatively influencing our students. Many people were falling into debt, some even committing suicide,” Modi said. Stressing that the issue was not with online entertainment itself, he added, “Gaming in itself is not bad, but gambling is.”

The Prime Minister warned that many apps label themselves as harmless games while in reality operating as gambling platforms. “Unfortunately, they call it gaming, but it becomes gambling,” he remarked. Modi also pointed to the government’s determination to move ahead despite resistance: “Big powers never wanted such laws to be made and for gambling to be banned. But our government has the political will and cares about the children in the country.”

The new law prohibits all real-money online games, whether based on skill, chance, or a mixture of both. By contrast, it supports esports and social gaming that exclude financial stakes. Advertising of online gambling is outlawed, and banks or financial services are barred from processing related payments.

Violations can result in up to three years in prison or fines reaching ₹1 crore ($120,481). The framework was introduced by Union IT Minister Ashwini Vaishnaw, who emphasized that while the legislation clamps down on predatory gambling, it aims to encourage innovation in safe digital gaming. He estimated that nearly 45 crore Indians had suffered losses from real-money platforms, amounting to more than ₹20,000 crore ($2.41 billion).

Meetings between Vaishnaw and industry leaders, including developers, esports associations, and payment providers, have already taken place. He promised to support lawful gaming sectors and suggested that amendments could be considered if ambiguities in the law created uncertainty, especially regarding hybrid game formats.

The enactment of the Act has disrupted payment ecosystems across India. With major gaming companies halting their paid services, fintech firms have reported steep drops in transaction volumes. Revenue losses are already being felt; gaming-related payments previously generated an estimated ₹1,500 crore ($170.7 million) annually for the sector.

At the same time, legal disputes have started to mount. Bagheera Carrom (OPC) Private Limited has challenged the law in the High Court, describing it as arbitrary and unconstitutional. The petition cites Articles 14, 19, and 21 of the Indian Constitution and argues that betting and gambling should fall under the jurisdiction of states, not the central government. Separately, Head Digital Works, the operator of A23, has  before the Karnataka High Court.

The Supreme Court is preparing to hear the Centre’s plea to transfer challenges from multiple state courts into one consolidated proceeding. A bench led by Chief Justice B R Gavai has agreed to review the matter, and the government has requested that other cases be paused until this decision is made.

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As the central government prepares to publish detailed rules and FAQs within weeks, Modi has emphasized that India’s creative community has an opportunity to shape the global gaming market. “India has many creative minds who can develop new games based on our stories and traditions. We can capture a share of the global gaming market,” he said, urging schools and colleges to guide students toward ethical careers in the sector.

Meanwhile, at the state level, new approaches are also being tested. Maharashtra is exploring reforms to its lottery program that would allow players to reclaim their ticket money with interest after several years if they do not win, as part of an effort to revive declining revenues.

The coming months will reveal how India’s courts, regulators, and industries adjust to the sweeping restrictions of the Online Gaming Act 2025, a law that has already reshaped the nation’s digital entertainment and financial landscape.

Sources:

, hindustantimes.com, September 4, 2025.