India’s booming online gaming industry, valued at Rs 320 crore today and projected to reach Rs 910 crore by 2029, faces a seismic shift.
On August 20, Union IT Minister Ashwini Vaishnaw tabled the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha, seeking to ban all real-money online games.
The Bill defines an “online money game” as any digital game, skill-based, chance-based, or hybrid, where users pay entry fees or deposit money in the hope of winning cash or equivalent rewards. E-sports and online social games are excluded.
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The law would outlaw:
The Bill also bars banks and financial institutions from facilitating transactions on such platforms. Violators face up to three years in jail and Rs 1 crore in fines, while influencers promoting such games could be jailed for two years and fined Rs 50 lakh.
Why is the ban being proposed?
The government argues that unregulated real-money gaming has:
It says a blanket ban is essential to curb the “grave social, economic, and psychological consequences” of such platforms.
The impact on e-sports
Unlike money-based games, e-sports will be promoted as a legitimate sporting activity.
The Ministry of Youth Affairs and Sports plans to create a framework to nurture professional gaming competitions.
Subscription-based “social games” for recreation and education may also be encouraged.
The impact on the overall industry
The impact could be huge:
Industry bodies like the All India Gaming Federation (AIGF) warn that prohibition will kill jobs, push users to illegal offshore betting sites, and harm innovation.
While the Bill promises to safeguard citizens and promote e-sports, its blanket ban could cripple India’s fastest-growing digital industry.
On August 20, Union IT Minister Ashwini Vaishnaw tabled the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha, seeking to ban all real-money online games.
The Bill defines an “online money game” as any digital game, skill-based, chance-based, or hybrid, where users pay entry fees or deposit money in the hope of winning cash or equivalent rewards. E-sports and online social games are excluded.
Go Beyond The Boundary with our YouTube channel.
The law would outlaw:
- Fantasy sports platforms like Dream11, MPL, My11Circle
- Card games such as Poker, Rummy
- Online lotteries and betting formats
The Bill also bars banks and financial institutions from facilitating transactions on such platforms. Violators face up to three years in jail and Rs 1 crore in fines, while influencers promoting such games could be jailed for two years and fined Rs 50 lakh.
Why is the ban being proposed?
The government argues that unregulated real-money gaming has:
- Triggered addiction and financial ruin for individuals and families
- Enabled fraud, tax evasion, money laundering, and even terror financing
- Exploited users through addictive algorithms, bots, and manipulative design
It says a blanket ban is essential to curb the “grave social, economic, and psychological consequences” of such platforms.
The impact on e-sports
Unlike money-based games, e-sports will be promoted as a legitimate sporting activity.
The Ministry of Youth Affairs and Sports plans to create a framework to nurture professional gaming competitions.
Subscription-based “social games” for recreation and education may also be encouraged.
The impact on the overall industry
The impact could be huge:
- Nearly 86% of gaming revenue in India comes from real-money games
- The sector already generates Rs 31,000 crore in revenue and Rs 20,000 crore in taxes annually
- It supports over 2 lakh jobs and has attracted Rs 25,000+ crore in FDI
Industry bodies like the All India Gaming Federation (AIGF) warn that prohibition will kill jobs, push users to illegal offshore betting sites, and harm innovation.
While the Bill promises to safeguard citizens and promote e-sports, its blanket ban could cripple India’s fastest-growing digital industry.
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