The Union government is preparing to implement the Promotion and Regulation of Online Games Act from October 1, Union Minister Ashwini Vaishnaw announced on Thursday. 

The legislation, passed by Parliament last month and cleared by the President, seeks to prohibit all forms of money-based online games while encouraging the growth of e-sports and skill-driven digital gaming.

According to a report in The Economic Times, Vaishnaw said the government had engaged in extensive consultations with stakeholders, including online gaming firms, banks, and fintech players, over the last three years before finalising the rules.

 “The rules will be promulgated with effect from October 1, and before that, we will have one more round of discussions with the industry,” the minister said. He further added that while the government is targeting an October 1 rollout, it remains open to a more consultative approach if the sector seeks additional time to comply.

The new law introduces sweeping restrictions: advertisements for online money games will be banned, and banks and financial institutions will not be permitted to process related transactions. Violations carry stringent penalties, ranging from imprisonment of up to two years and fines of Rs.50 lakh for advertising offences, to three years’ jail and fines of Rs.1 crore for facilitating transactions. Repeat violations can invite penalties as high as five years’ imprisonment and fines of Rs.2 crore.

Earlier this month, Electronics and IT Secretary S Krishnan had underlined that the Act would be enforced “very quickly” and that preparations were in place. In line with the new framework, several leading online money gaming firms have already announced the closure of their real-money services. The bigger hurdle, however, lies in tackling foreign-based betting platforms that continue to operate illegally and are harder to regulate.

Industry estimates suggest that nearly 45 crore Indians have collectively lost around Rs.20,000 crore in a single year due to online money gaming addiction. The government hopes that the new Act will not only curb such losses but also provide a structured framework for promoting legitimate gaming, e-sports, and innovation in the sector.