India’s Parliament Passes Sweeping Ban on Real-Money Online Gaming

By Chetna Gill

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India’s parliament has enacted a landmark law banning real-money online gaming, a move that delivers a severe blow to a burgeoning industry valued at billions of dollars while aiming to protect citizens from financial and psychological harm. The Promotion and Regulation of Online Gaming Bill, 2025, passed by both houses of parliament on August 21, 2025, prohibits games involving monetary stakes, targeting platforms like Dream11, Mobile Premier League (MPL), WinZO, and Zupee. The legislation, now awaiting presidential assent, has sparked intense debate, with supporters citing the need to curb addiction and fraud, while critics warn of economic fallout and the potential rise of unregulated offshore platforms. The potential growth of unregulated offshore gambling is a concern, as it could undermine the law's effectiveness and lead to a surge in illegal gambling activities. As major gaming companies begin suspending their cash-based operations, the law reshapes India’s digital entertainment landscape, raising questions about enforcement, economic impact, and the future of a sector that employs thousands and attracts millions of users.
The bill, introduced by Union Minister for Electronics and Information Technology Ashwini Vaishnaw, defines “online money games” as any service where users deposit money or stakes with the expectation of financial or material rewards. This broad definition encompasses fantasy sports platforms like Dream11, which commands a valuation of $8 billion and a user base of 200 million, as well as card games like rummy and poker offered by companies such as Games24x7 and Zupee. The law bans not only the operation of such platforms but also their advertisements and related financial transactions, with penalties including up to three years in prison and fines of up to 10 million rupees ($120,000) for violators. Repeat offenders face harsher punishments, with imprisonment extending to five years and fines doubling. Financial institutions and banks are barred from processing payments for these platforms, effectively choking their revenue streams. The legislation also grants enforcement officers authority to conduct searches and seizures without warrants, a provision that has raised concerns about digital privacy.
The government’s decision follows years of mounting scrutiny over real-money gaming, which has grown into a $3.7 billion industry projected to reach $9.1 billion by 2029, according to venture capital firm Lumikai. In 2024, real-money gaming accounted for 85.7% of the sector’s revenue, driven by the popularity of fantasy sports and skill-based games like rummy, which courts have historically distinguished from gambling as games of skill. The new law, however, makes no such distinction, applying its prohibitions to all games involving monetary stakes, regardless of whether they rely on skill or chance. Vaishnaw, speaking in parliament, emphasized the societal toll of these platforms, citing cases of addiction, financial ruin, and even suicides linked to losses incurred through online gaming. His emphasis on the societal toll of these platforms reassures the public of the government's commitment to their well-being, even if it means taking swift action.
The passage of the bill, which cleared the Lok Sabha and Rajya Sabha in less than 72 hours amid opposition protests over unrelated electoral issues, has prompted immediate action from major platforms. Dream11, India’s largest fantasy sports platform, announced on August 22 that it had discontinued all cash-based games and contests, urging users to “stay tuned” for future updates. MPL, valued at $2.5 billion, has similarly halted deposits and paid games, though it expressed a commitment to remain in the Indian market. Zupee, known for its Ludo-based games, suspended its paid offerings but continues to provide free versions of titles like Ludo Supreme and Snakes & Ladders. Gameskraft, which operates RummyCulture, has paused its “Add Cash” and gameplay services, assuring users that their funds remain secure and withdrawals are still available. Probo, an opinion-trading platform backed by Peak XV, also ceased its real-money operations, calling the legislation “unfortunate” but pledging compliance.
Industry leaders and analysts have voiced alarm over the ban’s implications. The sector, which supports over 200,000 direct and indirect jobs and contributes more than 20,000 crore rupees ($2.4 billion) annually in taxes, faces an existential crisis. The ban could lead to job losses and a significant drop in tax revenues, affecting the overall economy. Between 2021 and 2022, real-money gaming attracted over $2 billion in foreign direct investment, with companies like Dream11 and MPL backed by global giants such as Tiger Global and Peak XV Partners. The ban could deter future investments in the Indian gaming industry. Industry bodies, including the All India Gaming Federation, E-Gaming Federation, and Federation of Indian Fantasy Sports, warned in a letter to Prime Minister Narendra Modi that the ban could devastate this “sunrise industry.” They argued that shutting down regulated platforms would drive users to illegal offshore operators, which lack consumer protections, age verification, or anti-money laundering measures. “This will erode state and national tax revenues while exposing users to fraud and exploitation,” the letter stated, pointing to the risk of unregulated “matka” networks and offshore gambling sites filling the void.
Legal experts have also raised concerns about the bill’s constitutionality. Jay Sayta, a technology and gaming lawyer, argued that the legislation may overstep parliamentary authority, as betting and gambling fall under state jurisdiction unless explicitly authorized by state legislatures under Article 252 of the Constitution. Indian courts have long upheld a distinction between games of skill, such as rummy and fantasy sports, and games of chance, like gambling, granting legal protection to the former. The new law’s blanket prohibition disregards this precedent, potentially inviting challenges in the Supreme Court. Industry sources indicate that gaming companies are already consulting lawyers to explore legal recourse, citing the lack of stakeholder consultation and the economic devastation the ban could cause. These legal challenges could prolong the debate over the law and its implications, keeping the issue in the public eye.
Enforcement poses another significant challenge. The Indian Express reported that illegal betting and gambling platforms, estimated to be worth 8.2 lakh crore rupees ($98 billion) in 2024, have historically evaded restrictions through tactics like domain switching and the use of mule bank accounts. A report by the Digital India Foundation noted that four offshore gambling platforms, including Parimatch and 1xBet, received 1.6 billion visits from Indian users over three months in 2025, despite being deemed illegal. These platforms often operate mirror sites with interchangeable login credentials, making them difficult to block. The Enforcement Directorate has cracked down on such operations, conducting searches in August 2025 across cities like Mumbai and Delhi as part of a probe into Parimatch’s alleged 700-crore-rupee money laundering activities. The new law’s provisions requiring internet service providers and app stores to remove real-money gaming platforms may face similar hurdles, as offshore operators often circumvent such restrictions.
While the ban targets real-money gaming, the legislation also seeks to promote esports and social gaming, recognizing competitive skill-based games as legitimate sports. The Ministry of Youth Affairs and Sports is tasked with developing guidelines for esports tournaments, establishing training academies, and integrating the sector into national sports policy. Industry figures like Animesh Agarwal, co-founder of S8UL, hailed the move as a “historic turning point” for Indian esports, which is set to debut at the 2027 Olympics. Akshat Rathee of NODWIN Gaming emphasized the need for clear definitions to avoid conflating esports with money-based gaming, arguing that precise terminology is essential for the sector’s growth. However, the bill’s focus on esports has done little to assuage the concerns of real-money gaming companies, which face immediate financial losses and potential shutdowns.
The economic ramifications of the ban are substantial. The sector’s projected growth to $9.1 billion by 2029 now appears unattainable, with startups like WinZO and Games24x7 bracing for significant revenue drops. Dream11, which holds a 55% market share in fantasy sports, and MPL, with 15-20% in fantasy and casual games, have been major drivers of the industry’s growth, fueled by endorsements from top cricketers and aggressive marketing during events like the Indian Premier League. The bill’s prohibition on advertisements could shrink the personal sponsorship market for athletes, as noted by sports lawyer Vidushpat Singhania, who predicted a decline in fan engagement through fantasy platforms. Public sentiment on the ban is divided. Some, like Vishal Gondal, founder of GOQii, have welcomed the legislation, citing its potential to protect young people from addiction and debt. Others, including Congress leader Priyank Kharge, criticized the government for bypassing stakeholder consultation, warning of a 20,000-crore-rupee revenue loss for states. On social media platform X, users expressed mixed views, with some decrying the ban as a “knee-jerk” policy that undermines a legitimate industry, while others supported the government’s focus on curbing predatory apps.
Clearly, the bill’s approval marks a defining shift for India’s online gaming sector, steering it from regulation toward prohibition. With major platforms suspending operations and legal challenges looming, its impact on India’s digital economy and 591 million gamers remains uncertain. The government’s pledge to protect youth and prevent financial harm will be tested in a complex digital environment, where unregulated operators may exploit the vacuum left by licensed platforms. As the legislation awaits presidential assent, the industry and its vast user base brace for a restrictive new era that will demand rapid adaptation. 

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