IT Minister Ashwini Vaishnaw Holds First Meeting with Online Gaming Industry After RMG Ban

September 1, 2025, In a significant move aimed at rebuilding dialogue with the digital entertainment sector, India’s Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, convened his first formal meeting with representatives of the online gaming industry following the government’s recent ban on real-money gaming (RMG). The discussion marked the beginning of a new chapter in the relationship between policymakers and gaming companies, with both sides focusing on user protection, the future of esports, and the growth of social gaming in India.

Background: The Real-Money Gaming Ban

The central government’s decision earlier this year to prohibit real-money gaming sparked widespread debate within the industry. Authorities cited concerns about gambling addiction, financial exploitation of vulnerable players, and the lack of adequate safeguards for minors. The ban, while applauded by certain policymakers and parents, sent shockwaves through India’s fast-growing gaming ecosystem, where RMG had been a major revenue driver.

With India already home to one of the world’s largest young populations and a rapidly expanding digital economy, the government faced the delicate task of balancing consumer safety with the need to encourage innovation and investment in the gaming sector.

Key Discussion Points

During the meeting, Minister Vaishnaw emphasized that protecting users’ money and interests would remain the top priority. According to officials present, the government is actively considering the creation of a structured regulatory framework that distinguishes between different types of online gaming.

The talks also touched upon the promotion of esports and skill-based social games as legitimate entertainment and career avenues. Industry leaders highlighted how esports has already begun to create new jobs, inspire start-ups, and attract international attention. The minister expressed support for developing esports infrastructure, including tournaments, training academies, and integration into India’s broader digital innovation agenda.

Another major focus was financial accountability. Vaishnaw underlined the importance of building transparent payment systems and exploring escrow-based mechanisms that ensure user funds are protected at all times. Representatives from gaming firms assured the ministry that they are willing to collaborate on strict compliance measures, provided there is policy clarity and stability.

Industry Response

Gaming companies attending the session welcomed the opportunity to present their concerns and suggestions directly to the government. Several executives pointed out that the lack of differentiation between gambling-style apps and legitimate skill-based platforms has created confusion. They urged the ministry to adopt clear definitions and licensing requirements that could prevent misuse while allowing genuine businesses to thrive.

Many also proposed the establishment of an independent industry body, operating under government oversight, to standardize codes of conduct, promote responsible gaming, and carry out awareness campaigns among players.

Looking Ahead

The meeting signals the government’s intent to adopt a more consultative approach after months of uncertainty. Analysts believe that while the ban on RMG will remain in place for the foreseeable future, new opportunities could emerge in esports, gaming hardware, and ancillary services like streaming and event management.

For India’s gaming industry, the way forward now hinges on creating a sustainable regulatory model that balances innovation with social responsibility. Minister Vaishnaw’s engagement with industry leaders may well be the first step toward building that bridge.