“What has happened is the [gaming] industry is like a baby that is not yet born, and we have a regulator already. Normally, it’s the other way around”, said Vishal Gondal, the founder and CEO of GOQii, about e-sports during MediaNama’s discussion on the Online Gaming Bill. On August 22, 2025, the President gave assent to The Promotion and Regulation of Online Gaming Act, 2025, after both houses of Parliament passed it.
This legislation imposes a comprehensive ban on all online games involving monetary stakes, encompassing both games of chance and skill. Platforms like Dream11, MPL, PokerBaazi, and others offering real-money games have shut down following the enactment of the bill.
Simultaneously, the bill recognises e-sports and online social games as distinct categories. E-sports are defined as competitive, skill-based games played in virtual arenas with recognised rules and standards.
The Bill defines online social games as casual, skill-based digital games designed for entertainment, learning, or social interaction. These games may include one-time payments or subscriptions but prohibit wagering or monetary stakes. The government aims to promote these sectors by establishing a National Authority to oversee and regulate them.
During our discussion on the bill, the panelists debated the impacts of the bill on non-money games such as e-sports and online social games, how the regulating authority prescribed in the bill would work, and how monetisation mechanics in these games, like lootboxes, could be looked at.
Will In-App Purchases Be Allowed?
Jay Sayta, a technology and gaming lawyer, referred to the definition of “other stakes” in the bill when answering a question from an audience member on in-game purchases and their legality under the new bill. “Money is important but there has to be both elements. You are paying something in expectation of winning something in return. Purchases by way of registration fees or one-time fees where there is no monetary reward in return will probably not fall within the definition of an online money game. However, if there are both these things combined, depositing or paying money in expectation of winning money, then it falls within the definition of online money games”, Sayta explains. The authority prescribed in the bill will make this distinction.
Specifically, Sayta also referred to loot boxes and gacha mechanics where players could sell and trade in-game cosmetics for money on third-party platforms. “In other words, the definition is quite broad. But this is something that is not being done by the platform itself. There is a separate marketplace, so the platform will most likely not be liable for this. Loot boxes are again a contentious issue. If there is both an element of paying something to get these rewards, then loot boxes could be problematic,” Sayta adds.
Nikhil Pahwa, the founder of MediaNama, said games around the world use in-game…
Source link
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We blogs.grocliq.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on for any glitch kindly connect at [email protected]
