In recent years, we noticed advancement in online gaming in India and that too at a tremendous pace. Whether it is fantasy cricket, poker, mobile games, or quiz apps, millions of users engage with online games across various platforms everyday and everytime. But with India’s newfound Online Gaming Law, a new law is just introduced.
The government has introduced stricter regulations to improve the safety and maintain transparency within the industry. So, if you are an operator, investor, or working with a gaming company – whether at a corporate firm in Chandigarh, or as part of a team in Mohali – this affects you directly.
Let’s dive deep into thai topic and look at this law, how it may affect your company, and what actually “corporate liability” is now.
What the New Online Gaming Law Says
The government has passed a law for the Promotion and Regulation of Online Gaming Act, 2025 to create organization and accountability for online gaming. The principle of the law is to restrict illegal gambling and protect users against exploitation.
The law states the following:
- Anytime a consumer pays a fee in order to participate in a game and has the ability to cash out after winning money or cash prizes.
- Games including chess, puzzles, esports, etc. that do not involve betting will remain operational, but must operate within the prescribed rules of the statute.
- This agency will authorize new games, supervise the companies involved, and create an atmosphere that makes it more difficult for illegal gambling to occur.
- Companies that are found to violate the act face fines up to ₹1 crore or may be incarcerated up to 3 years.
Hence, the government is taking steps to rectify the gaming industry. With this companies now have a duty to be aware of their product, and also how they promote and operate their product.
What Corporate Liability Means Under the New Law
The most important aspect of this new law revolves around liability.
In the past, businesses might argue that all they did was an operational mistake. However, under a new law, directors, managers and senior officers are given the accountability to look after all such factors.
If a gaming company is operating or promoting a banned game, it could initiate a regulatory action against the company and personally against those individuals. To avoid personal accountability under the new law, the company will be asked to prove that:
- The action was unknown
- The company took all reasonable steps to prevent the action from occurring.
Without both of those facts being demonstrated, the company and its individuals can be liable.
Why This Law Was Needed
Despite the rapid growth of India’s gaming market, it still remains unregulated. There are a number of platforms in existence. In fact they may have claimed that they provide a “skill-based” platform when what they provided was a definition of gambling under the aspect of gaming.
This has created a number of issues, including,
- People losing massive portions of their money, including teenagers.
- Cases of addiction and financial crisis.
- Misuse of user data and money.
It is possible that the new law may address some of these issues. However, it attempts to reduce these irritating circumstances, create ethical gaming, stimulate innovation in e-sport, and provide some consumer protection.
Impact on Businesses
If you are involved with a gaming business, here is what the new law may mean for you:
No more cash-out games.
Any platform that involves cash or prizes that are redeemable for cash will no longer be allowed.
Be registered and approved.
Gaming entities must be registered with the new gaming authority and have your games approved.
Be transparent.
The rules and mechanics of any games must be available and easily comprehensible to users.
Protect user funds.
If deposits are accepted by your platform, those deposits must be held in a segregated account.
Review your marketing.
Don’t promote, market, or advertise any banned games.
Train your staff and directors.
Make sure your entire management team is aware of the new statute and compliance protocols.
For Corporate Law Firms
This new gaming law has opened an entire new category of advising work for corporate law firms in Chandigarh.
Attorneys can work with gaming startups, technology companies, and digital platforms to explain the new law and help those companies remain compliant.
This is how:
- Review their business models and potential legal exposure.
- Draft new compliance policies and agreements.
- Counsel directors on personal liability and best practices.
- Conduct internal audits to identify compliance issues.
This is a unique opportunity for law firms to position themselves as long-term partners to gaming companies, assisting them in compliance rather than solely policing violations.
How Companies Can Protect Themselves
To comply with the new legislation, it would be advisable for an organization to do the following:
Conduct a comprehensive review of their business.
Identify all products or services that might include any gaming based on money.
Provide training for employees and management.
So that everybody is clear on what they can and cannot conduct.
Review contracts and partnerships with vendors and payment partners.
To confirm that all vendors, advertisers and payment partners are compliant.
Document all compliance measures.
To have a record of compliance efforts with proper documentation that demonstrates an appropriate measure of compliance with the law.
Seek legal advice.
Engage a competent and experienced corporate law firm in Chandigarh or a solicitor in Mohali to ensure your business is fully compliant.
FAQs
1. Are all online games prohibited?
Only online games that involve real money or gambling are prohibited. However, they can still host skill-based games that do not involve the use of money.
2. Can companies offer or provide any sort of digital rewards or points?
Yes! The only requirement is that the digital rewards and points cannot be redeemed for cash or real money or currency.
3. What are the consequences for a company that engages in activity contrary to the Act?
The company could be subject to exorbitantly large fines, and the directors or officers associated with the activity subject to the Act could face up to three years in jail.
4. Do advertisers and influencers have any risk?
Yes! Promoting a game that was prohibited by the new law carries risks for advertisers and influencers.
5. How can a company ensure they comply with the Act?
By auditing their business practices and procedures, removing any reference to money, the associated cash component, documenting any and all compliance, and speaking with the appropriate legal counsel.
Final Words
The new online gaming legislation is more than just legislation, it signals the significance the Indian Government is putting on digital accountability today.
This law is not meant to end gaming; it is meant to ensure that gaming is responsible and safe for all gaming stakeholders.
For corporate law firms in Chandigarh and lawyers in Mohali, this is a moment to help organizations navigate these changes. For gaming companies, it is time to restore trust by complying with the law that supports the truth that fun can coincide with fairness.
Ultimately, the future of gaming in India will hinge on how safe organizations act responsibly.