PRELIMINARYCentral

Section 2 of The Promotion and Regulation of Online Gaming Act, 2025

(1)In this Act, unless the context otherwise requires,---
1. (a)"advertisement" shall have the meaning as assigned to it in the Consumer Protection Act, 2019 (35 of 2019);
2. (b)"Authority" means an Authority constituted under section 8;
3. (c)"e-sport" means an online game which---
  1. (i)is played as part of multi-sports events;
  2. (ii)involves organised competitive events between individuals or teams, conducted in multiplayer formats governed by predefined rules;
  3. (iii)is duly recognised under the National Sports Governance Act, 2025 (25 of 2025), and registered with the Authority or agency under section 3;
  4. (iv)has outcome determined solely by factors such as physical dexterity, mental agility, strategic thinking or other similar skills of users as players;
  5. (v)may include payment of registration or participation fees solely for the purpose of entering the competition or covering administrative costs and may include performance-based prize money *[for] the player; and
  6. (vi)shall not involve the placing of bets, wagers or any other stakes by any person, whether or not such person is a participant, including any winning out of such bets, wagers or any other stakes;
4. (d)"internet" means the combination of computer facilities and electromagnetic transmission media, and related equipment and software, comprising the interconnected worldwide network of computer networks that transmits information based on a protocol for controlling such transmission;
5. (e)"notification" means a notification published in the Official Gazette and the term "notify" shall be construed accordingly;
6. (f)"online game" means any game, which is played on an electronic or a digital device and is managed and operated as a software through the internet or any other kind of technology facilitating electronic communication;
7. (g)"online money game" means an online game, irrespective of whether such game is based on skill, chance, or both, played by a user by paying fees, depositing money or other stakes in expectation of winning which entails monetary and other enrichment in return of money or other stakes; but shall not include any e-sports;
8. (h)"online money gaming service" means a service offered by a person for entering or playing the online money game;
  1. (i)"online social game" means an online game which---
  2. (i)does not involve staking of money or other stakes or participation with the expectation of winning by way of monetary gain in return of money or other stakes;
  3. (ii)may allow access through payment of a subscription fee or one-time access fee, provided that such payment is not in the nature of a stake or wager;
  4. (iii)is offered solely for entertainment, recreation or skill-development purposes; and
  5. (iv)is not an online money game or e-sport;
9. (j)"other stakes" means anything recognised as equivalent or convertible to money and includes credits, coins, token or objects or any other similar thing, by whatever name called and whether it is real or virtual, which is purchased by paying money directly or by indirect means or as part of, or in relation to, an online game;
10. (k)"person" includes---
  1. (i)an individual;
  2. (ii)a Hindu undivided family;
  3. (iii)a company;
  4. (iv)a firm;
  5. (v)an association of persons or a body of individuals, whether incorporated or not;
  6. (vi)the State; and
  7. (vii)every artificial juristic person, not falling within any of the preceding sub-clauses;
11. (l)"prescribed" means prescribed by rules made under this Act;
12. (m)"user" means any person who accesses or avails online game.
(2)Words and expressions used but not defined in this Act but defined in the Information Technology Act, 2000 (21 of 2000) and rules made thereunder shall have the same meaning as respectively assigned to them in that Act and the said rules.

Summary

The Promotion and Regulation of Online Gaming Act, 2025 includes sections on the definitions of e-sport, which are not included in the Act.
It also includes sections a, b, and c of the Act, which refer to the definition of advertisement, a) b), c, and (d).
The Act also includes section 3 of the Regulation and Promotion of Online Gambling Act, and section 2 of the National Sports Governance Act, allowing for the recognition and promotion of er-sport.

Practical examples

1Kavitha buys 100 virtual gold coins for 500 rupees in a mobile game to unlock a cosmetic outfit. Under Section 2 of the Act, these virtual coins are classified as other stakes because they are virtual objects purchased by paying money.

2Rahul enters a nationwide multiplayer battle-arena tournament that is recognized under the National Sports Governance Act, 2025, paying a 50 rupees fee to cover administrative costs and competing for a trophy. Since the game is skill-based, registered, and has no betting, Section 2 defines it as an e-sport rather than an online money game.

FAQ

1. What is the difference between an e-sport and an online money game under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025?

Under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025, an e-sport has its outcome determined solely by skill like physical dexterity or mental agility and prohibits any bets, whereas an online money game requires depositing fees or stakes with the expectation of winning monetary or other enrichment.

2. Are virtual tokens or game credits considered stakes under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025?

Yes, under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025, other stakes includes credits, coins, tokens, or virtual objects purchased by paying money directly or indirectly.

3. Does a subscription-based game qualify as an online social game under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025?

Yes, under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025, an online social game can charge a subscription fee or one-time access fee, provided the payment is not a stake or wager and the game is for entertainment or skill-development.

Test yourself

Q1.Under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025, which of the following is NOT a required criteria for an online game to be classified as an e-sport?

Q2.Under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025, what does the term "other stakes" include?

Q3.Under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025, an online game that is based entirely on skill and is played by paying a deposit in expectation of winning a cash prize is classified as:

Q4.Under Section 2 of The Promotion and Regulation of Online Gaming Act, 2025, which of the following matches the definition of a "person"?

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