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The recent Promotion and Regulation of Online Gaming Act, 2025, that came into force in August, has been one of the most widely anticipated regulations in the digital entertainment industry. Among provisions such as promoting esports and licensing of online gaming, the legislation notably introduces a blanket ban on real-money gaming (RMG). The rationale behind this was to reduce its addictive effects, protect minors, and limit the circulation of black-money. However, in reality, the Act has spawned apprehension about the legislative process, regulatory redundancy, and unintended consequences that can shift users and revenue to offshore operators.

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From Debate to Prohibition: How the Act was Passed 

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The Promotion and Regulation of Online Gaming Act was passed as a central law, providing the earlier fragmented state laws on online betting and gambling with an overarching framework. Proponents argue that, among other provisions, some kind of unified national framework was needed to deal with the scale of online betting due to its detrimental impact on young users. The current Act is a direct transition to criminalisation rather than the swings of self-regulation and partial restrictions used during the previous decade of incremental experiments in regulation. Stakeholders in the industry believe that this type of sudden, blanket action creates uncertainty and erodes confidence in the system in the long run. Further, critics have pointed out that the Bill was passed without adequate Parliamentary deliberation. A question has been raised about whether procedural safeguards were upheld. 

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Prohibition of Online RMG

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Within the Indian context, a distinction has long been drawn between games of skill and games of chance, with the latter, like a lottery or a casino, being severely prohibited under state laws, whereas the former, like rummy or fantasy sports, have generally been allowed after being recognized as skill-based by court authorities. The Online Gaming Act of 2025 abolishes this distinction on the internet, thus banning all RMG actions that include cash transactions, regardless of skill or chance. The act also criminalises the advertising, facilitation, and hosting of such sites, thereby penalizing offshore operators with an Indian customer focus, and subjecting their payment gateways, app stores, and advertisers under its jurisdiction to penalties. 

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The Problem of Overlap

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One potential issue that the Act presents is its overlap with the existing laws. The IT Rules 2023 mandate intermediaries in the gaming sector to appoint compliance officers, submit monthly reports, and undergo due diligence. The new Act introduces a three-level classification of games, whereas the advisories of the Central Consumer Protection Authority (CCPA) under the Consumer Protection Act treat online betting as an unfair trade practice. 

This multiplicity of regulations builds a maze where different Ministries and state governments have overlapping jurisdiction.  Policy experts caution that such an overlap can create enforcement challenges, punish players who act within the law, and leave offshore malefactors undetected.  

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Unintended Consequences: Driving Users Offshore

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Outright prohibition will hardly ever remove demand; it will only push it out. Offshore sites have taken advantage of the situation as Indian operators like Dream11 shut down their money games after the ban. It has already been reported that there is aggressive advertising by foreign betting companies that are not registered in India, most of which have backend infrastructure that cannot be regulated by the Act (Storyboard18).

This diversion of users to unregulated markets has two main risks. First, Indian players are deprived of the consumer protection offered to them in local regulation, and their data can be sent to suspicious foreign organizations. Second, the government loses control over the money flow that can be transferred via informal channels or cryptocurrencies or other obscure systems. Industry analysts are alerting that such developments may only worsen the issue of black-money instead of solving it (IGamingBusiness).

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Advertising, Age Gating, and Digital Rights

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The Act has also strengthened advertisement regulations, aligning with advisories issued by the Advertising Standards Council of India, which prohibits the targeting of minors. However, critics believe that the application remains inadequately enforced, and children can with comparative ease access unregulated overseas applications. In the absence of complementary digital literacy programs and strong parental controls, these limitations can be effectively superficial instead of real. 

Privacy advocates also warn that frequent prompts, vague messages, or invasive surveillance can weaken the digital rights of users instead of strengthening them. Overregulation has also been found to create banner blindness in global contexts where users ignore warnings without first clearly understanding them.

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Enforcement Challenges

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The Act puts a lot of responsibilities on many stakeholders, including the Ministry of Information and Broadcasting (MIB) and the Reserve Bank of India (RBI). Platforms like Google Play and Apple App Store are expected to verify government-approved lists of compliant gaming apps and remove non-compliant or banned ones, as directed by the MIB and the RBI. Although this pressure may motivate intermediaries to collaborate, it may also have a risk of overreach when it is applied unequally or in a political way.

According to the experts, the solution should be underpinned by technology itself. Artificial intelligence can be used to identify illegal advertisements, track illegal gaming in children, and trace payment streams. At the same time, the regulators should be able to issue final lists of either compliant or non-compliant applications to advise the consumers and intermediaries alike. Without such practical provisions, enforcement risks remaining patchy.

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Online Gaming Rules

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On 1 October 2025, the government issued a draft of the Online Gaming Rules in accordance with the Promotion and Regulation of Online Gaming Act. The regulations focus on the creation of the compliance frameworks, define the classification of the allowed gaming activities, and prescribe grievance-redressal mechanisms aiming to promote the protection of the players and procedural transparency. However, the draft does not revisit or soften the existing blanket prohibition on real-money gaming (RMG) and, hence, the questions about the effectiveness of enforcement and regulatory clarity remain open (Times of India, 2025).

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Protecting Consumers Without Stifling Innovation

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The ban highlights a larger conflict, i.e., the protection of the vulnerable users without stifling an industry that has traditionally contributed to innovation, jobs, and the collection of tax revenue. Online gaming has significantly added to the GST collections, and the sudden shakeup brings fiscal concerns (Reuters).

Several legal objections to the Act have already been brought, asking whether the Act is constitutional, especially as to whether the restrictions are proportional to the right to trade. The outcome of such cases will define the future trajectory of the digital economy of India (Reuters).

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Way Forward

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Instead of outright prohibition, a more balanced approach that incorporates regulation and consumer protection is suggested by the experts. Key measures could include:

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• A definite difference between games of skill and games of chance, with proportionate regulation.
• Age confirmation and campaign against online illiteracy to protect the underage population.
• Enhanced advertising and payments compliance requirements and enforceable non-compliance penalty.

• Coordinated oversight among different ministries to prevent duplication and regulatory struggle.
• Leveraging AI and fintech to track illegal financial activities (black money flows) and developing innovation.

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Conclusion

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The Online Gaming Act 2025 addresses social issues, such as addiction, monetary risk, and child safety, that require governance interventions.  However, the path it follows to this end, that of total prohibition,  is more likely to spawn a new set of issues instead of providing solutions because it will send consumers to offshore sites, undermine consumer rights, and slow innovation.

For India, the real challenge is not whether to prohibit online money gaming but how to create a balanced, transparent, and enforceable framework that protects users while fostering a responsible gaming ecosystem. India can reduce the adverse consequences of online betting without keeping the industry in the shadows with better coordination, reasonable use of technology, and balanced protection.

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References:

• India's Dream11, top gaming apps halt money-based games after ban
• India online gambling ban could drive punters to black market
• Offshore betting firms with backend ops in India not covered by online gaming law
• The Great Gamble: India’s Online Gaming Ban, The GST Battle, And What Lies Ahead.
• Game Over for Online Money Games? An Analysis of the Online Gaming Act 2025
• Government gambles heavily on prohibiting online money gaming
• Online gaming regulation: New rules to take effect from October 1; government stresses consultative approach with industry

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Introduction

The global food industry is vast and complex, influencing consumer behaviour, policy, and health outcomes worldwide. However, misinformation within this sector is pervasive, with significant consequences for public health and market dynamics. Misinformation can arise from various sources, including misleading marketing campaigns, unsubstantiated health claims, and misrepresentation of food production practices through public endorsement or otherwise. Nutrition misinformation is one such example. The promotion of false or unproven products for profit can lead to mislead consumers and affect their interests. Misleading claims and inaccurate information about the nutritional value of food products and processes are common claims. The misinformation created about food on the global stage distorts public understanding of nutrition, food safety, and environmental impacts, leading to significant consequences for public health, consumer trust, and the economy.

Rise of Nutritional Misinformation and Consumer Distrust

Health and nutrition-related misinformation is one of the most prevalent types in the food sector. Businesses frequently advertise their products as "natural" or "healthy" without providing sufficient data to back up these claims, tricking customers into buying goods that might be heavy in fat, sugar, or salt. Words like "superfood" are frequently used without supporting evidence from science, giving the impression that they are healthier.

Misinformation also impacts the sustainability and ethics of food production. Claims of "sustainable" or "ethical" sourcing are frequently exaggerated or fabricated, leaving consumers unaware of the true environmental and social costs associated with certain products.

This lack of clarity is not only observed in general food trends but also within organisations meant to provide trustworthy information. There has been significant criticism, directed at the International Food Information Council (IFIC), for their alleged promotion of nutrition-based misinformation to safeguard the interests of large food corporations, resulting in potentially compromising public health. The preemptive claims that IFIC made about the nutritive claims have been questioned by the National Institutes of Health, USA in November 2022. They reported in their study that IFIC promotes food and beverage company interests and undermines the accurate dissemination of scientific evidence related to diet and health. This was in support of the objective of the study, which was to determine whether, there have been many claims that the nutritional value of certain foods or diets may be manipulated to favour business goals, leaving consumers misinformed about what constitutes a truly healthy diet.

Another source of misinformation is the growing ‘Free-From’ fad. The “free-from” label in the US is a food category of products that claim to be free from certain ingredients or chemicals. It has been steadily growing by 7% annually. These labels often tout products as healthier due to a simpler ingredient list. Although seemingly harmless, transparency in ingredient disclosure is often obscured in the 'free-from' trend. This can lead to consumer distrust in the long run, making them hesitant.

The Harmful Effects of Food Misinformation

The effects of misinformation about nutrition and food safety can directly affect public health.
Consumers unknowingly may accept false claims or avoid certain foods without scientific basis and adopt harmful dietary habits, potentially leading to malnutrition or other health problems. By the time the realisation sets in about being misled, their trust is eroded not only towards such companies but also towards the regulators. This distrust can lead to declining consumer confidence and disrupt market stability. 

Some food-related misinformation downplays the environmental impact that certain food production practices have. An example of such a situation is the promotion of meat alternatives as being entirely eco-friendly without considering all environmental factors. This can mislead consumers and obscure the complex environmental effects of food production systems. 

Misinformation can distort consumer purchasing habits, potentially leading to a reduced demand for certain products and unfair competition. The sufferers in this case are the small-scale producers who suffer disproportionately, while the large corporations might use this misinformation to maintain their dominance in the market. Regulatory checks, open communication, and public education campaigns are needed to combat mis/disinformation in the global food sector and enable consumers to make decisions that are sustainable, healthful and informed.

CyberPeace Recommendations

• Unfair trade practices like providing misleading information or unchecked claims on food products should be better addressed by the regulators. Companies must provide clear, transparent and accurate information about their products as mandated under the Food Safety and Standards (Advertising and Claims) Regulations, 2018. This information should include the true origins, production methods, and nutritional content on their labels.
• Promotions of initiatives and investments by public health organisations and food authorities towards educating consumers and improving food literacy should encouraged. 
• Regulating social media endorsement is also crucial to prevent the spread of misinformation and unchecked claims. Without proper due diligence on product details, influencers may unknowingly mislead their audience, causing potential harm. 
• The Social Media Platforms can partner with nutritionists, dietitians, and other health professionals who are content creators, as they can help in understanding and promoting accurate, science-based nutrition information and debunk any misleading claims.
• Campaigns should be encouraged to spread public awareness about the harms of food-related misleading claims or trends. Emphasis should be on evidence-based nutritional guidance. The ongoing research towards food safety, nutrition, and true information should be actively communicated to keep the public informed. Combating food misinformation requires more robust regulations, improved transparency, and heightened consumer awareness and vigilance.

References

• https://timesofindia.indiatimes.com/india/label-claims-on-packaged-food-could-be-misleading-icmr/articleshow/110053363.cms 
• https://www.outlookindia.com/hub4business/empowering-change-freedom-food-alliance-takes-on-global-food-industry-misinformation 
• https://insightsnow.com/misinformation-hurting-food-business/ ‍
• https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9618198/pdf/12992_2022_Article_884.pdf

Data localisation refers to restrictions in the data flow by limiting the physical storage and processing of data within a given jurisdiction’s boundaries.  

An obvious benefit contributing to the importance of data localisation is the privacy benefits it offers. In addition to this, data localisation also has the potential to safeguard sensitive data and decrease the probability of cyber-attacks. In India, data localisation has become a key issue in the last decade due to the increase in the discourse for data privacy. 

The Legal Framework in India

India passed the Digital Personal Data Protection Act of 2023 which directs the data fiduciaries (collectors and processors of digital personal data) to store the data of Indian citizens within India. This push for data localisation aligns with India’s position to enhance privacy, national security and regulatory control. It further requires data fiduciaries to adhere to the principles of data minimisation, purposeful limitation and consent of the data principles. Further, Section 17 of the Act prohibits the transfer of sensitive personal data to foreign jurisdictions unless they meet satisfactory privacy protection standards. 

The Reserve Bank of India, via a circular for Payments Data Regulation in 2018, has mandated that all payment data be stored in India, though it can be processed abroad. It requires the telecom sector to ensure local storage and local processing of subscriber information. It further prohibits the transferring of subscribers’ account information overseas.

MeitY’s Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, emphasise data localisation, specifically when it involves government or critical data. The main idea behind this is that data related to Indian citizens or government activities should remain accessible to Indian law enforcement agencies and is not subject to external jurisdiction.

Common Misinformation about Data Localisation and its Impact

Misconceptions fuel misinformation and influence public perception and policy debates. A common misconception is that all data must be stored in India. It should be noted that non-critical and non-sensitive data are not subject to localisation, and can be cleared for cross-border transfers under specific circumstances.

Another misconception is that data localisation alone ensures complete security. A robust cybersecurity approach, infrastructure and capabilities are what guarantee security and this holds true regardless of the location of where the data is stored. 

The notion that small businesses and startups will suffer the most is untrue. While data localisation policies may lead to increased costs, they foster innovation in the domestic infrastructure and services. This potentially fuels development and innovation in these small businesses and startups. Claims that data localisation will stifle global business are unfounded. 

Proper regulations for data transfers can help balance data flows, enabling international trade while ensuring data sovereignty.

Real Impact of Data Localisation

Data localisation impacts several domains and has both positive and negative outcomes.

• It can be a driver for investment in local data centres and infrastructure, thereby inducing employment generation and boosting the domestic economy. And in contrast, the compliance costs may rise especially for MNCs that need to maintain multiple data storage systems. 
• It can expedite the growth of local technology ecosystems while encouraging innovation in cloud computing and data storage solutions. On the other hand, small businesses might face struggles to afford the required infrastructure updates and upgrades.
• Law enforcement agencies will be able to gain access to data more swiftly while avoiding lengthy processes such as the Mutual Legal Assistance Treaties (MLATs). However, it should be noted that storing data locally does not automatically ensure that they are immune from attacks and breaches.
• A balance between sovereignty and global partnerships is a challenge that emerges with data localisation. International Trade Relationships are vulnerable to data localisations where countries favour a free data flow. This can hamper foreign collaborations with companies that rely on global data systems.

CyberPeace Outlook

It is important to clear misinformation about data localisation, some strategies that can be undertaken are:

• Launching public awareness campaigns to educate the stakeholders about the real requirements and the benefits of data localisation. Misinformation about data restrictions and security guarantees should be tackled fairly quickly. 
• A balanced approach that promotes local economic development while at the same time allowing for the necessary cross-border data flows and creating a flexible and friendly business environment is important.
• India should work on international frameworks to streamline the process of data-sharing with other nations. This would protect national interests while making global cooperation easier.

Conclusion

Data localisation in India presents a valuable opportunity to enhance privacy, bolster national security, and stimulate economic growth through local infrastructure investment. Yet, addressing common misconceptions is crucial; the belief that all data must be stored domestically or that localisation alone ensures security is misleading. 

It’s vital to pair local data storage with robust cybersecurity measures and foster international cooperation. Supporting small businesses, which may face challenges due to localisation requirements, is equally important. By addressing misinformation, promoting flexible regulations, and working towards global data-sharing frameworks, India can effectively manage the complexities of data localisation, safeguarding national interests while encouraging innovation and economic development. 

References

• https://www.thehindu.com/sci-tech/technology/are-data-localisation-requirements-necessary-and-proportionate/article66131957.ece 
• https://carnegieendowment.org/research/2021/04/how-would-data-localization-benefit-india?lang=en
• https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=2995
• https://www.meity.gov.in/writereaddata/files/Information%20Technology%20%28Intermediary%20Guidelines%20and%20Digital%20Media%20Ethics%20Code%29%20Rules%2C%202021%20%28updated%2006.04.2023%29-.pdf