A Comprehensive Framework Balancing Innovation and Social Safeguards: Expert View on banning real money online gaming

New Delhi, Aug 20: Commenting on the legislation banning real money online gaming, Gaurav Sahay, Founding Partner, Arthashastra Legal, said the new law is “innovative from multiple perspectives – recognising a new dimension of e-sports while at the same time addressing areas of social concern, financial security, and devolution of liabilities.”

According to him, the statute is comprehensive in scope, applying not just to service providers but also to facilitators and even individuals involved in the propagation of real-money games. “It recognises and perseveres to prevent addiction, fraud, money laundering, and terror financing,” he explained.

The law imposes a blanket prohibition on all real-money online games, regardless of whether they are based on skill or chance. It also bars financial institutions, payment intermediaries and advertising platforms from facilitating such activities.

Sahay pointed out that one of the most notable features is the inclusion of ‘aggravated liability’ in cases of repeat offences. “It provides stringent penalties, including imprisonment and heavy fines, for anyone who offers, facilitates or promotes such games. Even the advertising of these platforms has been criminalised, making offences cognizable and non-bailable,” he said.

On the progressive side, the legislation formally recognises e-sports as a distinct competitive sport, envisaging the creation of a National e-Sports Authority for regulation, standard-setting and development. In parallel, a National Gaming Authority is also contemplated with powers of classification, oversight, investigation and blocking of unlawful platforms.

“It is, therefore, not merely a law of prohibition, but also one of innovation – seeking to balance the risks of harmful online gaming with the potential of e-sports as a legitimate industry,” Sahay added.