An online money game is one where a user pays a fee or deposits a stake expecting monetary or other enrichment, irrespective of whether the game is based on skill or chance. Stakes include anything equivalent or convertible to money, such as virtual coins and tokens. E-sports and social games without wagering or monetary reward are excluded.
The definition
The Act captures games where a user pays a fee or deposits a stake "with the expectation of winning monetary or other enrichment", and applies "irrespective of whether such games are based on skill or chance". Stakes extend to "anything equivalent or convertible to money, including virtual coins and tokens".
Editorial explainer, not legal advice. The law here is contested and moving, constitutional challenges are pending before the Supreme Court. For decisions about your own position, consult a qualified Indian lawyer.
A practical three-part test
- Does value go in? An entry fee, deposit or stake, in money or in something bought with money.
- Is there an expectation of value coming back out? Cash, or anything convertible to it.
- Is it online? The Act addresses online play; offline activity remains a state-law question.
Three yeses put a product inside the prohibition. Notably, "but it's a game of skill" is not one of the questions.
Where the edges are
- Token economies. A "free" game issuing coins redeemable for cash is doing the same thing as one taking deposits.
- Entry fee vs stake. Recognised e-sports may charge participation fees, the Act treats a tournament entry differently from a wager on an outcome.
- Subscriptions. Paying for access is not staking for return.
Why the breadth was deliberate
Previous prohibitions were drafted around gambling, and a decade of litigation went into arguing what fell outside them. Defining by economic substance, value in, value expected out, closes the routes that argument used to take.
FREQUENTLY ASKED QUESTIONS
Are casual mobile games with in-app purchases affected?
Buying items for gameplay is not staking for monetary return. The question is whether value can flow back out to the user.
What about 'play for coins' apps?
If coins are convertible to money, the definition may well be met regardless of how the app is marketed.
Sources
Every legal claim on this page traces to the material below. Primary sources are the statute and government notifications themselves.
- The Promotion and Regulation of Online Gaming Act, 2025 (Act No. 32 of 2025) — full text(opens in a new tab) — Ministry of Electronics and Information Technology, Government of IndiaPrimary source
- Promotion and Regulation of Online Gaming Act, 2025 — official announcement(opens in a new tab) — Press Information Bureau, Government of IndiaPrimary source
- Promotion and Regulation of Online Gaming Rules, 2026(opens in a new tab) — Press Information Bureau, Government of IndiaPrimary source
- The Online Gaming Act, 2025 — redrawing India's online gaming landscape(opens in a new tab) — Trilegal
