Legal experts call for central online gaming regulation in India

Neha Soni
Written by Neha Soni

As India’s online gaming sector explodes in scale and influence, legal experts are calling for a unified, central regulatory framework—or risk the ecosystem spiraling into legal chaos. Speaking at the Digital Entertainment Summit 2025, top legal minds warned that the current state-by-state patchwork of laws is no match for the sector’s rapid growth, rising offshore threats, and increasing harm to children.

Their call echoes recent studies by the Internet and Mobile Association of India (IAMAI) and LawNK, which show that fragmented regulation has left both consumers and domestic operators vulnerable, while enforcement remains largely ineffective. The session included Senior Counsel Gopal Jain, Gaming and Tech Lawyer Dhruv Garg, Principal Lawyer at LawNK Nandan Kamath, MeitY’s Former Senior Director Rakesh Maheshwari.

“The beauty of the Indian legal system is creativity. But the need of the hour really is for the central government to have an overarching regulatory framework.”

– Gopal Jain, Senior Counsel

Child protection in gaming needs broader risk lens

Dhruv Garg highlighted that existing discussions around child safety are overly focused on screen time, missing deeper issues. “The physical and psychological impact of over-gaming… there are problems with posture. But also psychological issues—the content and the interaction.” He added a sharp warning about multiplayer gaming’s hidden dangers, “A 13-year-old could be playing with a 32-year-old. You hope the adult is smart enough.” Garg, however, emphasised that sometimes that is not the case.

He said the country currently lacks an age-appropriate content classification system. “We don’t have our own content classification matrix,” he noted, underlining the urgent need for a regulatory foundation tailored to Indian demographics.

Jain revisited the long-standing legal debate around skill vs chance, calling for the central government to define a “clear Lakshman Rekha”—a firm legal boundary that separates permissible gaming activity from impermissible.

Backing this up, Nandan Kamath pointed out the need for empirical, tech-supported decisions, “The skill versus chance debate is treated as legal analysis, but it’s actually about facts. It’s almost criminal not to use AI and machine learning to determine these boundaries.”

Centre vs state: The jurisdictional tug-of-war

Challenging the common belief that gaming regulation lies within the states’ domain, Kamath argued that Entry 31 of the Union List, which governs telecommunications, makes a strong case for central oversight. “The harm we’re addressing is about broader digital impact, not just gambling.”

Moderator Gowree Gokhale compared the enforceability of digital gaming laws to physical gambling regulation, arguing that digital traceability offers a unique advantage—if structured and implemented correctly.

Offering insight into the origin of current IT rules, Rakesh Maheshwari explained the rationale behind the “permissible online gaming” concept. “The whole idea was that whatever is not permissible becomes impermissible. And it should preferably be decided by experts, not the government. We therefore wanted self-regulating bodies—independent self-regulating bodies—to be brought in.”

Offshore betting: A parallel, unchecked economy

One of the most alarming topics of discussion was the unchecked proliferation of offshore betting platforms, many of which bypass Indian regulatory oversight entirely. Jain cautioned,“These elements are able to play in these gray areas. A parallel industry is flourishing and thriving. New revamped law with teeth in it, otherwise, you are allowing an illegitimate activity to eclipse [the legitimate one].”

Kamath delivered a comparison, “You are actually better off being an offshore betting website than an onshore gaming website. That is the reality today.”

According to Garg, offshore platforms control a $20 billion market, compared to India’s $3 billion gaming sector: “The only way is to show that the Indian guys are at least doing their best. But the offshore guys which are 6, 7, 10 times bigger have no compulsion.”

Panelists agreed that the future of India’s online gaming sector hinges on a centralised regulatory framework that is both tech-savvy, and child-safe. Without it, “The central government should take the lead, but with clearly demarcated go/no-go zones and good coordination,” Jain concluded.

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