0
0 By Study Smart India News Desk | Published: August 22, 2025
In a landmark decision aimed at curbing addiction and financial risks, India’s Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, effectively banning all forms of real-money online gaming across the country. 0 The legislation, which cleared the Lok Sabha on August 20 and the Rajya Sabha the following day, marks a significant shift in the regulation of the digital gaming sector, prioritizing player protection and national security over industry growth.
The Core Provisions of the Bill
The new law draws a clear line between games involving monetary stakes—termed “online money games”—and non-monetary activities like esports and social gaming. It outright prohibits the offering, promotion, or facilitation of any real-money gaming services, including popular formats like fantasy sports, poker, and rummy. 1 Advertisements for such platforms are also banned, with financial institutions barred from processing related transactions.
Violations carry stiff penalties: service providers could face up to three years in prison or fines reaching Rs 1 crore, with repeat offenses escalating to five years imprisonment and fines up to Rs 2 crore. 3 The government has emphasized that the bill addresses rising concerns over addiction, money laundering, and the potential use of these platforms for illicit activities, including terror financing. 4
While cracking down on real-money games, the legislation actively promotes esports and skill-based social gaming without financial elements. Ministries such as Youth Affairs and Sports, along with Information and Broadcasting, are tasked with fostering these areas, potentially opening new avenues for legitimate growth in the industry. 2
Major Brands Set to Be Impacted
The ban is poised to disrupt a booming sector valued at around $2.7 billion in 2024, with projections of reaching $3.8 billion by 2029 before this development. 3 Several high-profile companies heavily reliant on real-money models will bear the brunt:
- Dream11: As India’s leading fantasy sports platform, valued at $8 billion, Dream11 has thrived on user-paid contests tied to real cricket matches and other sports. The ban could force a complete overhaul or shutdown of its core operations. 4
- Mobile Premier League (MPL): Valued at $2.3 billion and backed by global investors like Tiger Global, MPL offers a range of real-money games including fantasy cricket and card games. Industry insiders predict significant layoffs and app shutdowns. 4
- Games24x7: Known for platforms like RummyCircle and My11Circle, this company has attracted substantial foreign investment. The prohibition on monetary transactions will directly hit its revenue streams. 7
- PokerBaazi: Part of Nazara Technologies’ portfolio, which invested over Rs 800 crore in the platform, PokerBaazi specializes in online poker. Nazara’s shares have already dipped 15% since the bill’s introduction, signaling market jitters. 2
- WinZO and Junglee Games: These firms, focusing on skill-based real-money games, join the list of entities facing operational halts. Collectively, the sector has drawn over Rs 25,000 crore in foreign direct investment, much of which is now at risk. 7
Other affected players include Khelo Fantasy and Probo, with the latter already announcing the suspension of its real-money features in response to the bill. 2 Experts warn of up to 200,000 job losses and a government revenue shortfall of Rs 15,000-20,000 crore from GST and taxes. 3
Government’s Rationale and Industry Backlash
Union IT Minister Ashwini Vaishnaw defended the bill in Parliament, likening gaming addiction to drug dependency and highlighting its links to social evils like chit funds. 2 The government acknowledges the revenue hit but prioritizes public welfare, having already blocked over 1,400 betting sites since 2022. 6
Industry groups, however, are gearing up for legal challenges, arguing the lack of consultations and the bill’s failure to distinguish between skill-based and chance-based games. 4 Some firms plan to petition the Supreme Court, emphasizing the sector’s contributions to employment and innovation.
Looking Ahead: A Safer Digital Landscape?
As the bill awaits presidential assent, it signals India’s commitment to a regulated digital ecosystem that safeguards vulnerable users, particularly youth, from financial and psychological harms. 5 While real-money gaming faces an existential threat, the push for esports could nurture a new era of competitive, non-monetary entertainment. Stakeholders will watch closely as enforcement begins, potentially reshaping India’s gaming industry for years to come.
This article is based on recent developments and aims to provide an objective overview of the Online Gaming Bill 2025.
Average Rating