The recent passage of the Promotion and Regulation of Online Gaming Bill, 2025, has sparked debate about the future of India's gaming sector. While the bill bans online money games, the IT Secretary, S Krishnan, assures that it's "not the end of the road" for the industry. He emphasizes the significant growth opportunities within the esports and social gaming segments.

Clarifying the Intent of the Bill

Krishnan clarifies that the bill aims to provide clarity and structure to the gaming sector. He notes that many industry stakeholders had requested a clear administrative framework to prevent legitimate parts of the gaming industry from being negatively affected. The bill establishes an institutional framework, addressing the industry's dissatisfaction with the self-regulatory bodies proposed in the April 2023 amendments to the IT rules. This framework includes the creation of a proper authority to oversee the sector.

The primary goal of the legislation is to encourage esports and online social games while strictly prohibiting online money gaming, related advertisements, and financial transactions. The government's stance is to promote innovation and esports while regulating exploitative money gaming.

Addressing Concerns and Promoting Growth

The IT Secretary dismisses the notion that banning money games will destroy the industry's backbone. He points out that esports and social gaming are substantial segments of the overall gaming market. The government recognizes India's potential to become a global gaming hub and aims to support legitimate areas within online gaming, including esports and recreational/educational social games.

The government is establishing the Indian Institute of Creative Technologies (IICT), with gaming as one of its key areas, to ensure that the beneficial aspects of the industry are promoted.

Rationale Behind the Ban on Money Games

The decision to ban online money games stems from concerns about addiction, financial ruin, and social distress. The government estimates that 450 million people in India engage in online money games, with many families suffering significant financial losses and some individuals even committing suicide due to addiction and opaque algorithms. Minister for IT, Electronics & Railways Ashwini Vaishnaw described online money games as a "social menace". The new law criminalizes the offering, promotion, and financing of such games, with offenders facing imprisonment and fines. However, individual players will not be punished, as the government views them as victims.

Impact and Future Outlook

While some anticipate job losses due to the ban on online money games, the government believes that the promotion of esports and casual gaming ventures will help absorb some of the displaced workforce. The IT secretary is confident that investments will continue to flow into the gaming industry, particularly in segments aligned with the new regulations.

Despite the ban, the Indian gaming market is projected to experience substantial growth. A Mordor Intelligence study estimates the market will grow from US$2.2 billion in 2023 to US$8.6 billion by 2028, with a CAGR of 27.4%. Another report projects the market to grow from USD 5.83 billion in 2025 to USD 22.53 billion by 2034, exhibiting a CAGR of 16.20%. This growth is driven by increasing smartphone adoption, affordable internet access, and a large youth population.