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India focuses on eSports growth as Ashwini Vaishnaw meets gaming companies
IT Minister Ashwini Vaishnaw meets gaming firms to discuss eSports and player protection
Union IT Minister Ashwini Vaishnaw met with representatives from the online gaming industry on Monday to discuss ways to protect users' money and promote eSports and social games, reported PTI, citing an official source.
New online gaming law
The meeting comes shortly after Parliament passed The Promotion and Regulation of Online Gaming Act, 2025, which bans all online money-based games while encouraging eSports and skill-based games. The Act has received the President's assent and will come into effect once officially notified by the government.According to PTI, the discussions focused on ensuring a smooth transition for players and the industry, while also safeguarding users' funds. Officials noted that many gaming companies have already begun taking steps to comply with the new rules.
Banks and fintech seek implementation guidelines
Last week, banks and fintech companies held a joint meeting with the Department of Financial Services and the Ministry of Electronics and IT to seek clear guidelines for implementing the law. They also requested sufficient time to build systems capable of monitoring and blocking transactions related to online money games.Under the new legislation, advertising money-based games is banned, and banks and financial institutions are barred from processing payments for such games. Violations can attract up to two years in prison and fines of up to ₹50 lakh, while facilitating financial transactions for money games can lead to three years' imprisonment and fines up to ₹1 crore. Repeat offenders face even stricter penalties, including three to five years in jail and fines of up to ₹2 crore.
Several major online gaming firms have already shut down their money-based services voluntarily. However, the government faces the ongoing challenge of curbing foreign-based online gaming platforms.
Industry estimates suggest that nearly 45 crore people in India lost around ₹20,000 crore last year due to online money gaming, highlighting the need for robust regulation.
(With inputs from PTI)
Source: LiveMint
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