The Indian government has taken a firm stance against real-money gaming (RMG), estimating that approximately 45 crore people in the country lose around Rs 20,000 crore annually on such platforms. This alarming figure has prompted the Lok Sabha to pass the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to ban online money games, prioritizing public welfare over potential revenue loss.

Key Provisions of the Bill

The Online Gaming Bill, 2025, introduces a complete ban on real money gaming, encompassing activities like fantasy sports, poker, rummy, and other platforms where players deposit funds with the expectation of monetary returns. This prohibition extends to both domestic and offshore operators accessible in India. The bill aims to protect individuals, especially the youth and vulnerable populations, from the adverse impacts of these games.

Violations of the ban will attract strict penalties, including imprisonment of up to three years and fines up to Rs 1 crore for first-time offenders. Repeat offenders may face enhanced penalties, including imprisonment between three to five years and fines up to Rs 2 crore. The legislation also prohibits advertisements for such games, with promoters, including influencers, also facing penalties. Banks and financial institutions are barred from facilitating transactions for online money gaming services.

To oversee the sector, the bill provides for the establishment of an Online Gaming Authority. This authority will be responsible for coordinating policy support, regulating and supervising gaming platforms, supporting e-sports and legitimate online social gaming enterprises, and curbing harmful practices.

Impact on the Online Gaming Industry

The ban on real-money gaming is expected to have a significant impact on the online gaming industry in India, which has been valued at $3.7 billion in 2025. Real-money gaming formats account for nearly 85% of the sector's revenue, making them the most affected by the bill. Several major RMG platforms like Dream11, Mobile Premier League (MPL), WinZo, and My11Circle are expected to be impacted.

Industry insiders have warned that the ban could cripple the sector, leading to significant job losses and forcing companies to close down. The All India Gaming Federation (AIGF) and other industry bodies have voiced concerns over the ban and have urged the government to adopt balanced regulations that protect users while supporting the sustainable growth of the industry.

The ban could also result in a revenue loss for OTT players, digital companies, and broadcasters, as RMG advertisements vanish. It is estimated that these platforms could lose at least Rs 2,000 crore annually. The government has calculated that banning online money games will result in a revenue loss of about Rs 15,000 crore to Rs 20,000 crore.

Potential Benefits and Concerns

While the ban on real-money gaming may lead to short-term challenges for the industry, it also presents opportunities for the growth of e-sports and online social games. The bill recognizes e-sports as a creative and recreational industry with strong growth potential and aims to support its development as a mainstream sector. Online social games are encouraged as safe entertainment options that do not involve financial risks or addictive gambling mechanisms.

However, some experts have raised concerns that the ban could drive users to offshore, unregulated platforms, leading to a loss of tax revenues for the Indian exchequer. There are also concerns that the bill may face legal challenges on grounds of trade restriction and legislative competence.

Government's Rationale

The government has defended the move, citing widespread social and financial harms caused by online money games. These harms include addiction, financial distress, psychological issues, and public health concerns, particularly among young individuals and economically disadvantaged groups. The government has also noted that some of these platforms have been linked to illegal activities like money laundering and terror financing. By banning real-money gaming, the government aims to protect its citizens from these potential harms and promote a safe and responsible gaming environment.