India Bans Real-Money Online Gaming: What’s Next?

India’s Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, marking a major regulatory shift in the country’s digital entertainment sector. The legislation, which prohibits all online gaming involving real-money stakes, cleared the Rajya Sabha on Thursday, following its approval in the Lok Sabha a day earlier. The Bill passed amid vociferous opposition protests, reflecting the high stakes for both the gaming industry and millions of users nationwide.

Under the new law, the operation, advertisement, and financial facilitation of online money games are strictly prohibited. This includes popular formats such as fantasy sports, poker, rummy, and online lotteries. In practical terms, banks, payment gateways, and digital wallets are now barred from processing transactions related to these platforms, effectively cutting off the financial lifeline of the real-money gaming ecosystem. Experts note that this regulatory measure aims to address the widespread financial and social risks associated with gambling-like online games.

The Developments

Violations of the legislation carry severe penalties, including imprisonment for up to three years and fines of up to RS 1 crore (approximately US$120,000). Legal analysts suggest that such stringent consequences signal the government’s intent to enforce compliance strictly and deter illegal operations from proliferating online.

The government has defended the move as a necessary intervention to protect the public from addiction, financial fraud, and exploitation. Officials estimate that over 45 crore Indians lose close to RS 20,000 crore annually through real-money gaming platforms. S Krishnan, secretary at the Ministry of Electronics and Information Technology, emphasized that the Bill is designed to draw a clear line between harmful practices and legitimate digital innovation. He stressed that esports, educational games, and other socially constructive gaming formats will continue to receive government support, citing initiatives such as the Indian Institute of Creative Technologies and AVGC Centres of Excellence, which aim to foster skills and innovation in the gaming and animation sectors.

The economic implications of the legislation are significant. India’s real-money online gaming sector is valued at approximately RS 2 lakh crore, generating around RS 31,000 crore in annual revenue and contributing RS 20,000 crore in taxes. Industry groups warn that the Bill could lead to the closure of 400 companies, threaten over 200,000 jobs, and slow India’s emergence as a global gaming hub, especially in areas such as game development, esports, and platform operations. Analysts caution that while the policy targets consumer protection, it may also disrupt economic growth within the tech-driven entertainment ecosystem unless mitigation strategies are implemented.

India’s 2025 Online Gaming Bill bans all real-money online games, including fantasy sports and poker, while supporting esports and educational gaming.

The Future

Observers note that the government’s approach reflects a selective regulatory strategy, banning real-money gaming while simultaneously promoting skill-based, educational, and esports formats. Success will depend on effective enforcement, clear guidelines for operators, and the sector’s ability to pivot toward legal, non-monetary gaming models. The Bill also sets a precedent for other countries in the region considering tighter regulation of online gambling platforms.

The passage of the 2025 Online Gaming Bill represents a decisive moment in India’s digital policy landscape, balancing the government’s public protection mandate with the need to nurture emerging technology-driven sectors. Analysts suggest that the coming months will be critical in assessing the law’s impact on the gaming industry, employment, and India’s position in the global digital economy.