India’s lower house of parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, a sweeping law that bans all real-money games — whether based on skill or chance.
Highlights
- Sweeping Ban: All real-money games — skill-based or chance-based — prohibited nationwide under the new Online Gaming Bill, 2025.
- Industry at Risk: A sector worth ₹2 trillion ($23B), employing 200,000+ people, faces shutdown; investors already reassessing exposure.
- Heavy Penalties: Up to 3 years in prison and fines of ₹10M for operators; celebrities endorsing such platforms also face jail or fines.
- Economic Fallout: Nazara Technologies stock plunged 23% within two days; startups like Dream Sports, MPL, and WinZO under investor scrutiny.
- Legal Pushback: Federations warn ban conflicts with constitutional rights and could push players toward offshore, unregulated apps.
- Esports Impact: Casual and esports firms split — some welcome clarity, others fear regulatory confusion blurring lines with gambling.
- Historical Context: Builds on 2023’s 28% gaming tax (still contested) and failed self-regulation attempts; tax may rise to 40%.
- Sports Sponsorships: Ban threatens cricket sponsorships and advertising revenues, potentially hitting BCCI and broadcasters.
- Next Steps: Bill awaits approval in the upper house and by the President, deciding the fate of India’s $23B gaming ecosystem.
While the bill supports casual gaming and esports without monetary stakes, it poses a significant challenge to an industry valued at over ₹2 trillion ($23 billion) and employing more than 200,000 people.
What the New Law Covers
The legislation introduces wide-ranging restrictions:
- Nationwide ban – All real-money games, including skill-based and chance-based formats, prohibited.
- Advertising restrictions – Promotion of real-money gaming platforms banned.
- Financial restrictions – Banks and payment providers barred from facilitating transactions.
- Penalties – Operators face up to 3 years in prison or fines of ₹10 million ($115,000); celebrities endorsing such platforms risk 2 years in jail or fines of ₹5 million ($57,000).
Introducing the bill, IT Minister Ashwini Vaishnaw said the government was prioritizing social welfare, citing reports of suicides linked to gambling-related losses.
Legal and Economic Concerns
Gaming industry bodies have criticized the legislation as disproportionate. Some legal experts argue it could conflict with Article 19(1)(g) of the Constitution, which guarantees the right to trade or profession.
Federations representing online gaming companies, including the Federation of Indian Fantasy Sports, All India Gaming Federation, and E-Gaming Federation, warned that banning regulated Indian platforms could push millions of players toward offshore betting apps and illegal networks without safeguards.
In letters to Prime Minister Narendra Modi and Home Minister Amit Shah, these groups stressed the sector’s contribution to the economy:
- Valuation – ₹2 trillion ($23B)
- Revenue – ₹310 billion ($3.6B)
- Annual taxes – ₹200 billion ($2.29B)
- Employment – 200,000+ jobs across 400+ companies
“By shutting down regulated Indian platforms, it will push players to illegal offshore operators who offer no consumer protections or taxation,” the groups warned.
Market Impact – Stocks and Investor Reaction
The market reaction was swift. Nazara Technologies, one of India’s largest listed gaming firms, saw its stock fall by nearly 13% immediately after the announcement, despite clarifying it had no direct exposure to real-money gaming. Within two days, its losses deepened to 23%.
Major startups such as Dream Sports, MPL, and WinZO have remained silent publicly, though reports suggest both domestic and international investors are closely reassessing their exposure to the sector.
The bill was passed in under seven minutes by voice vote, amid noisy debates in the lower house. It now awaits approval from the upper house and the President before becoming law.
Esports and Casual Gaming
While real-money gaming companies have strongly opposed the ban, casual and esports firms expressed mixed reactions.
Sumit Batheja, CEO of Ginger Games, welcomed the clarity, saying it allows companies to focus on building intellectual property and monetization strategies without having to justify their place in the market.
On the other hand, Akshat Rathee, co-founder of NODWIN Gaming, cautioned that the lack of precise definitions could create confusion for regulators, players, investors, and organizers.
Some analysts fear the broad powers granted to a new regulator could unintentionally affect esports, blurring the line between professional competitive gaming and gambling-linked platforms.
India’s History of Gaming Regulation
This ban builds on earlier attempts to regulate the sector. In 2023, the government imposed a 28% tax on online gaming, which companies said could result in $2.5 billion in write-offs and the loss of one million jobs. That tax is still being contested in the Supreme Court.
The same year, new IT rules introduced a self-regulatory framework, but disagreements between industry players limited its impact. Reports now suggest the government may raise the gaming tax further, potentially to 40%.
Policy experts warn that such abrupt policy shifts could harm India’s reputation as a predictable investment destination.
What’s at Stake
The real-money gaming sector had been one of the fastest-growing digital industries in India, with projections of 28% annual growth through 2028.
The blanket ban now threatens mass closures of startups, major job losses, and an accelerated shift of players to offshore operators. Analysts also warn of a spillover effect into the wider AVGC sector (Animation, Visual Effects, Gaming, Comics).
According to The Economic Times, the ban has already triggered mass fund withdrawals from gaming platforms, raising concerns about liquidity and stability. Experts caution this may worsen the very problem the bill seeks to resolve by driving users toward unregulated operators.
Financial Losses
New government data indicates that 450 million Indians lose around ₹20,000 crore annually through real-money gaming. Officials argue that the figures justify the ban, framing it as a step to reduce financial harm and protect vulnerable consumers.
Cricket May Take a Hit
Real-money platforms have been among the biggest sponsors of Indian cricket. Industry executives warn the ban could significantly reduce advertising and sponsorship revenues for the BCCI and broadcasters such as JioStar, potentially affecting funding for grassroots and non-cricket sports.
A Central Authority in the Works
The bill also proposes the creation of a National e-Sports Authority or Online Gaming Authority, tasked with overseeing the entire gaming ecosystem. This body would regulate esports, casual games, and educational platforms, aiming to establish a unified governance framework.
The real-money gaming ban represents one of the most significant regulatory crackdowns India’s tech sector has faced. The outcome now rests on the upper house and the President’s approval.
