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Tuesday, 6 October 2026 · New Delhi

Governance· Prelims · GS-II

New frontiers: online gaming, sports governance and children online

Real-money gaming, sports federations and children’s social media use are sectors the Indian state never governed before. How it is learning to regulate them, and the pattern that unites the attempts.

By the RaahUPSC editorial desk27 September 2026Updated 30 September 202621 min readintermediate

Governance usually chases problems the state already knows. These three frontiers are different: sectors the Indian state never governed before. Online real-money gaming grew to a $5.02 billion market with over 517 million gamers before a central law touched it. Sports federations ran for decades as fiefdoms of politicians and bureaucrats. And children’s social media use raises questions no Indian statute was written to answer. This article examines how the state is learning to govern each, and the pattern that unites the attempts.

A note on sources: the merged-notes chapter carries the National Sports Governance Act, 2025 only as a practice question, so its treatment below follows the X-Factor chapter’s fuller account and the merged notes’ framing of the unresolved tensions around it. Where dates run into 2026, they are reported as the source compilation records them.

Online real-money gaming: from grey zone to prohibition

The market the state woke up to is large: $5.02 billion in 2024-25, projected to reach $10.77 billion by 2030, with over 517 million online gamers in India, about 155 million of them in money-based gaming, roughly a fifth of the global gaming user base. Growth was fuelled by cheap data, UPI’s instant deposits and withdrawals, smartphone penetration, cricket fantasy leagues that normalised predictive wagering, celebrity marketing, and offshore platforms reachable through VPNs and mirror sites.

The harms the sources catalogue are severe: financial ruin through predatory algorithms and easy credit, behavioural addiction with a reported 25 per cent rise in gaming disorder in 2025, suicides linked to online rummy debt, money laundering through offshore platforms such as the Mahadev betting app case, exploitation of minors using parents’ devices, phishing apps flagged by CERT-In, and erosion of sports integrity through match-fixing risk.

The 2025 gaming law and the skill-versus-chance puzzle

The Promotion and Regulation of Online Gaming Act, 2025 draws a hard line: it prohibits all online money games, games involving financial stakes such as poker and rummy, while permitting e-sports and online social games. The classification is threefold: e-sports as competitive skill-based digital sports through organised tournaments; online social games as skill-based games for entertainment or social interaction; and online money games as stake-based games. The law provides a national-level regulator to categorise and register games and handle grievances, authorises officers with investigation, search, seizure and arrest powers, and makes offences cognisable and non-bailable. An Online Gaming Authority of India under MeitY classifies games and handles enforcement, and Section 112 of the Bharatiya Nyaya Sanhita, 2023 prescribes up to seven years’ imprisonment for unauthorised betting and gambling.

Regulation runs into six hard problems. Jurisdiction: gambling is a state subject but online gaming sits with the Union, producing persistent legal friction. Enforcement: offshore entities re-emerge under new domains, the mirror-site phenomenon. Definition: the industry has filed over twenty petitions in 2025 challenging the money-game definition, because the Supreme Court’s jurisprudence, from Dr. K.R. Lakshmanan in 1996 establishing the predominance-of-skill test to the Dream11 case upholding fantasy sports as skill-based and the Skill Games Federation case setting aside blanket state bans, protects genuine skill games. Shadow payments move through crypto, proxy IDs defeat KYC, surrogate advertising promotes betting during live sport, and decentralised apps evade shutdown orders entirely.

Sports governance: the reform push

The National Sports Governance Act, 2025 aims to professionalise federations, ensure athlete-centricity and prepare India for its 2036 Olympic bid. Its provisions, as the chapter account records them: a National Sports Board as the apex statutory body to grant, monitor and if necessary cancel recognition of National Sports Federations; athlete representation with at least two sportspersons of merit in every executive committee and four in the general body, with full voting rights; age and term caps of 70 years and three consecutive terms; a National Sports Tribunal for specialist adjudication with appeals only to the Supreme Court; a National Sports Election Panel for centralised oversight of federation elections; and financial accountability, with only bodies registered as Section 8 companies or trusts eligible for government grants and tax exemptions.

The reform responds to a long charge sheet: active involvement of politicians and bureaucrats producing administrative bias and policy paralysis; honorary-run federations with only 5 per cent of NSFs having professional CEOs; international suspensions such as the wrestling federation’s in 2023; low women’s participation in governance; weak safeguarding, as the Brij Bhushan Singh case showed; political factionalism producing parallel bodies; and doping, with NADA reporting a 15 per cent rise in positive cases among junior athletes in power sports in 2026. The unresolved tensions the merged notes flag are worth carrying into any answer: RTI applicability to federations and the centralisation of regulatory power the Act creates.

The National Sports Policy of 2025, replacing the 2001 policy, supplies the strategy around the statute: five pillars covering global excellence, sports for economic development, sports for social development, sports as a people’s movement, and integration with education under NEP 2020, with a whole-of-government monitoring framework of KPIs and time-bound targets. The Budget for 2026-27 raised the sports ministry’s allocation to a record 4,479.88 crore rupees, and Khelo India is being converted from a scheme into a long-term mission.

Protecting minors on social media

India’s states are moving first: Karnataka announced plans to ban social media for under-16s, Andhra Pradesh announced restrictions for under-13s. The global reference point is Australia’s Online Safety Amendment (Social Media Minimum Age) Act of 2024, the world’s first under-16 ban, covering Facebook, Instagram, TikTok, Snapchat, YouTube, X, Reddit, Threads, Twitch and Kick, excluding WhatsApp and YouTube Kids, with penalties up to 49.5 million Australian dollars for non-compliance. Indonesia became the first Southeast Asian nation to enforce an under-16 ban in March 2026.

The case for bans rests on evidence the sources cite from the Economic Survey of 2025-26: adolescents lack the neurological brakes to resist addictive features like infinite scroll. High usage is linked to anxiety and depression from curated idealised lives and constant comparison, exposure to self-harm and disordered-eating content, data harvesting without informed consent, cyberbullying, academic decline, and in extreme cases suicide, such as the Ghaziabad three-sisters case of February 2026. Gaming disorder sits in the WHO’s ICD-11 as a recognised health condition.

The case against bans is equally structured: children circumvent age verification with fake IDs and parental help; verification itself demands sensitive data, selfies, IDs, bank details, creating privacy risks; bans raise constitutional and free-speech concerns by restricting young people’s political communication; they drive use underground to less-regulated platforms and VPNs; they cut off educational, social and civic benefits; and they isolate already-marginalised youth, LGBTQ, neurodivergent and disabled children who rely on online communities. India’s DPDP Act already requires verifiable parental consent for children under 18, which is the consent-based alternative to a ban.

Cybersecurity: guarding the digital state

The working definition:

Three attacks examiners cite:

Attack

What happened

AIIMS Delhi (2022)

A ransomware attack disrupted hospital services for days; patient data and medical records were inaccessible, exposing healthcare's cyber gaps.

Kudankulam Nuclear Plant (2019)

The administrative network was breached by the North Korea-linked Lazarus Group, raising national-security concerns.

WazirX crypto exchange (2024)

About 230 million dollars (Rs 2,000 crore) was stolen from digital wallets; withdrawals were suspended, exposing fintech and crypto vulnerabilities.

India's cyber-institution stack:

Institution or instrument

Role

IT Act, 2000

The legal framework for cybersecurity governance and enforcement.

National Cyber Security Policy, 2013

Aims to protect public and private infrastructure from cyberattacks and build a secure cyber ecosystem.

CERT-In

The nodal agency under MeitY for cyber threats: alerts, incident response and coordination.

Cyber Swachhta Kendra (Botnet Cleaning Centre)

Provides tools to detect and remove malicious software and secure user systems.

National Cyber Coordination Centre (NCCC)

Real-time cyber-threat monitoring and coordination between intelligence agencies.

Information Security Education and Awareness (ISEA)

Training and awareness on cyber hygiene for citizens, students and government employees.

Cyber Surakshit Bharat

A public-private partnership training government officials in cybersecurity best practices.

The way forward flagged in the material:

Blockchain in governance: the National Strategy

MeitY's

The application list: the RBI's

The Indian pilots, each a possible prelims fact:

Pilot

What it does

New Town Kolkata (West Bengal)

NFTs for land mutation: transparent ownership records with no manual paperwork; Durgapur and Bankura municipal corporations issue blockchain birth certificates.

Tamil Nadu Blockchain Backbone

A state ID consolidating essential documents into a digital wallet; the e-Pettagam app enables secure document sharing.

Karnataka Unified Land Management System

Streamlines land-records management on a unified digital system.

Firozabad (Uttar Pradesh)

A grievance filing and tracking portal built with Polygon, keeping complaint records tamper-evident.

Telangana and Maharashtra

Blockchain pilots for land records to cut property fraud.

CBSE via DigiLocker

Tamper-proof digital academic certificates on blockchain.

The challenges, and the way forward:

Challenge

Way forward

Scalability and energy use

Permissioned blockchains, like the NIC e-Office platform, for control, scale and privacy.

Regulatory and legal uncertainty

Clear laws on the legal validity of blockchain records; Estonia's integration of blockchain into national ID and health records is the cited model.

Data privacy on public chains

Strong encryption and privacy layers before citizen data touches a public ledger.

Capacity

Train officials and build sandboxes, on the lines of Dubai's Blockchain Strategy with its pilots and public-sector training.

The Fourth Industrial Revolution and e-governance

A 2020 UPSC question made this a syllabus item: the

  • Data-driven decision making: big-data analytics informing policy and efficiency; Aadhaar-based DBT cutting leakages in targeted welfare.
  • Digital economy expansion: e-commerce and digital payments transforming trade and finance; UPI processed Rs 23.49 lakh crore across 16.58 billion transactions in October 2024 (RBI).
  • AI-led public services: AI platforms improving governance, healthcare and education; Aarogya Setu's COVID-19 case tracking as the pandemic-management example.

The unifying pattern: infrastructure first, regulation later

Across AI, blockchain, climate and platform governance, the merged notes identify a consistent Indian pattern: build the infrastructure and institutions first, bring in statutory regulation later. This sequencing accelerates deployment and lets India move fast, but it leaves real accountability gaps that become visible only once harm has occurred. Online gaming followed the same arc: a $5 billion market before the 2025 Act. Sports governance: decades of federation fiefdoms before the 2025 statute. Children online: state-level ban proposals before any settled national framework.

For exam answers this is the unifying frame worth using whenever a question spans more than one frontier: India regulates late but, when it does, regulates hard, through prohibition, criminal penalties and centralised regulators. The analytical question to close with is whether late-and-hard beats early-and-graduated, and who pays the price in the interval.

Key Terms

  • Amendment (Social Media Minimum Age) Act, 2024: This is the full title of the Australian statute passed in late November 2024, amending the Online Safety Act 2021 to create a national minimum age of 16 for holding accounts on designated social media platforms. Platforms must take reasonable steps on age assurance, and the eSafety Commissioner can fine non-compliant companies up to about AU$50 million. It took effect on 10 December 2025, making Australia the first country with a national under-16 social media ban. Example: the law applies to Facebook, Instagram, TikTok, Snapchat, Reddit, X, YouTube, Threads, Twitch and Kick.
  • Amendment (Social Media Minimum Age) Act: This is the short reference to Australia's Online Safety Amendment (Social Media Minimum Age) Act, a world-first law placing the duty on social media platforms rather than on children or parents. It requires age-restricted platforms to take reasonable steps to prevent users under 16 from creating or maintaining accounts, backed by civil penalties reaching about AU$50 million for systemic failure. It matters for UPSC as a landmark in platform regulation, child safety and digital governance. Example: after commencement in December 2025, platforms such as Instagram, TikTok and Snapchat were required to block under-16 accounts in Australia.
  • Regulation of Online Gaming Act, 2025: The Regulation of Online Gaming Act, 2025 is the Promotion and Regulation of Online Gaming Act, passed by Parliament in August 2025, which bans all online money games involving financial stakes while promoting e-sports and social games. It creates the Online Gaming Authority of India, prohibits advertisements and bank transactions for money games, and sets prison terms and fines for violations. It matters for UPSC as a major digital-economy regulation balancing growth with addiction and fraud concerns. Fantasy sports platforms shutting their paid contests after the Act banned real-money gaming.
  • National Sports Governance Act, 2025: The National Sports Governance Act, 2025 is the statute that replaced the National Sports Development Code of 2011 with a binding legal framework for sports administration. Passed by Parliament in August 2025, it creates the National Sports Board and the National Sports Tribunal, mandates athlete and women representation in federation executives, and brings recognised bodies under RTI. For UPSC, it is the key example of statutory reform of autonomous bodies. Every national sports body's executive committee must include two sportspersons of outstanding merit and four women.
  • National Strategy on Blockchain: The National Strategy on Blockchain is MeitY's framework committing the government to integrate blockchain across healthcare, agriculture, finance, voting and e-governance.
  • National Cyber Security Policy: The National Cyber Security Policy of 2013 aims to protect public and private infrastructure from cyberattacks and build a secure cyber ecosystem. It has not been updated since 2013, a standard examiner critique.
  • Fourth Industrial Revolution: The Fourth Industrial Revolution is the AI and IoT-driven transformation of production and administration. A 2020 UPSC question asked how it made e-governance integral to government: through data-driven decisions, the digital economy and AI-led public services.
  • National Sports Tribunal: The National Sports Tribunal is the adjudicatory body established under the National Sports Governance Act, 2025 to resolve sports disputes. It functions with powers akin to a civil court for matters of federation elections, athlete selection, and internal governance, with appeals lying directly to the Supreme Court. For UPSC, it illustrates the tribunalisation trend and the push to keep sports disputes out of overburdened ordinary courts. An athlete challenging a selection decision can now approach the Tribunal instead of filing a writ petition.
  • Online Gaming Authority: The Online Gaming Authority is the commonly used short name for the Online Gaming Authority of India (OGAI), the statutory regulator created under the Promotion and Regulation of Online Gaming Act, 2025. It classifies online games as e-sports, social games or money games, maintains the national registry of permitted games, decides user complaints and can order unlawful platforms to stop operating. It is the central enforcement institution of India's online-gaming regime. A developer unsure whether its game counts as a money game can apply to the Authority for a formal determination order.
  • Cyber Surakshit Bharat: Cyber Surakshit Bharat is a public-private partnership to train government officials in cybersecurity best practices.
  • Cyber Swachhta Kendra: Cyber Swachhta Kendra is the Botnet Cleaning Centre providing tools to detect and remove malicious software and secure user systems.
  • National Sports Board: The National Sports Board is the apex regulator created under the National Sports Governance Act, 2025 to oversee sports federations in India. It grants, suspends, or cancels recognition of national sports federations, sets norms for governance, ethics, elections, and financial transparency, and only recognised federations qualify for central funding. For UPSC, it marks the shift from the non-statutory Sports Code of 2011 to binding legal regulation. A federation that fails the Board's governance norms can lose both recognition and government grants.

Practice questions

Q1Prelims practice

Consider the following statements about the Promotion and Regulation of Online Gaming Act, 2025:

  1. It prohibits all online money games involving financial stakes.
  2. It permits e-sports and online social games.
  3. Offences under the Act are cognisable and non-bailable.

Which of the statements given above is/are correct?

Show answer

Answer: (D) All three statements are correct: the 2025 Act prohibits online money games, permits e-sports and social games, and makes offences cognisable and non-bailable.

Q2Prelims practice

The Supreme Court’s “predominance of skill” test for distinguishing games of skill from gambling was established in:

Show answer

Answer: (A) Dr. K.R. Lakshmanan v. State of Tamil Nadu (1996) established the predominance-of-skill test; Dream11 and the Skill Games Federation cases applied it later.

Q3Prelims practice

Which provision of the National Sports Governance Act, 2025 was reported as newly operationalised in early 2026?

Show answer

Answer: (A) The chapter account records that the National Sports Governance Rules, 2026, notified in January 2026, operationalised mandatory inclusion of retired athletes in decision-making.

Q4Prelims practice

Australia’s Online Safety Amendment (Social Media Minimum Age) Act, 2024:

Show answer

Answer: (A) Australia’s 2024 Act bans under-16s from listed platforms including Facebook, Instagram and TikTok, excluding WhatsApp and YouTube Kids, with penalties up to AUD 49.5 million.

Q5Prelims practice

Consider the following statements about children and social media regulation:

  1. The DPDP Act in India requires verifiable parental consent for children under 18.
  2. Karnataka announced plans to ban social media for under-16s.

Which of the statements given above is/are correct?

Show answer

Answer: (C) Both statements are correct: the DPDP Act requires verifiable parental consent for under-18s, and Karnataka announced an under-16 ban plan.

Answer key

  1. (d): All three statements are correct: the 2025 Act prohibits online money games, permits e-sports and social games, and makes offences cognisable and non-bailable.
  2. (a): Dr. K.R. Lakshmanan v. State of Tamil Nadu (1996) established the predominance-of-skill test; Dream11 and the Skill Games Federation cases applied it later.
  3. (a): The chapter account records that the National Sports Governance Rules, 2026, notified in January 2026, operationalised mandatory inclusion of retired athletes in decision-making.
  4. (a): Australia’s 2024 Act bans under-16s from listed platforms including Facebook, Instagram and TikTok, excluding WhatsApp and YouTube Kids, with penalties up to AUD 49.5 million.
  5. (c): Both statements are correct: the DPDP Act requires verifiable parental consent for under-18s, and Karnataka announced an under-16 ban plan.

Mains Practice question

Q. “India’s approach to emerging governance frontiers is to build infrastructure first and regulate later.” Examine this claim with reference to AI, blockchain and platform governance, or with reference to online gaming and sports governance. (250 words)

Framing hintOpen with the analytical takeaway as your thesis: infrastructure and institutions first, statutory regulation later. Test it on two or three frontiers: online gaming (a $5 billion market before the 2025 Act), sports governance (decades of federation fiefdoms before the 2025 statute), and optionally AI or platform governance. For each, show the deployment dividend (speed, scale) and the accountability gap that appeared in the interval (addiction and fraud, capture and safeguarding failures). Close by evaluating late-and-hard regulation (prohibition, criminal penalties, centralised regulators) against early-and-graduated alternatives, naming who pays the price in the gap.

Related GS-II themes from the PYQ bank: the significance of the National Sports Governance Act, 2025 and its unresolved tensions around RTI applicability and regulatory centralisation, listed among the chapter’s practice questions.

Frequently asked questions

What does the Promotion and Regulation of Online Gaming Act, 2025 do?

It prohibits all online money games involving financial stakes, while permitting e-sports and online social games. A national-level regulator categorises and registers games, offences are cognisable and non-bailable, and an Online Gaming Authority of India under MeitY handles classification and enforcement.

What is the skill-versus-chance puzzle in gaming regulation?

The Supreme Court has protected genuine games of skill from gambling bans since Dr. K.R. Lakshmanan (1996) established the predominance-of-skill test, applied later to Dream11 fantasy sports. The 2025 Act’s money-game definition is being challenged in over twenty petitions on exactly this ground.

What does the National Sports Governance Act, 2025 provide?

A National Sports Board to recognise and de-recognise federations, athlete representation with voting rights in executive committees and general bodies, age and term caps, a National Sports Tribunal with appeals only to the Supreme Court, a centralised election panel, and financial accountability through Section 8 or trust registration.

What are the unresolved tensions in sports governance reform?

Whether federations fall under the RTI Act, and whether the new architecture centralises regulatory power excessively. Both were flagged as live tensions in the merged-notes chapter.

Which countries have banned social media for minors?

Australia’s Online Safety Amendment (Social Media Minimum Age) Act, 2024 was the world’s first under-16 ban, with penalties up to AUD 49.5 million. Indonesia enforced an under-16 ban in March 2026. In India, Karnataka announced an under-16 ban plan and Andhra Pradesh announced under-13 restrictions.

What is India’s consent-based alternative to a social-media ban?

The DPDP Act requires verifiable parental consent for children under 18, which regulates through consent rather than prohibition, though enforcement of age verification remains the hard problem.

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