India Bans Real-Money Gaming

21.08.2025

India’s lower house of parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, which imposes a nationwide ban on all real-money games, whether based on skill or chance. The legislation prohibits advertisements, financial transactions, and operations related to such games, with violators facing heavy fines and prison sentences. The government argues the move is intended to protect society from harms associated with gambling, including reported suicides linked to financial losses.

Industry groups, however, strongly oppose the bill, warning that it will cripple India’s $23 billion real-money gaming sector, eliminate over 200,000 jobs, and force more than 400 companies to shut down. They argue that the law will drive millions of players to unregulated offshore gambling sites and illegal matka networks, which operate without consumer protections or tax contributions. Critics also claim the ban violates Article 19(1)(g) of India’s Constitution, which guarantees the right to practice any trade or profession.

The bill has already caused market turbulence, with Nazara Technologies’ stock dropping nearly 13%, despite clarifications that it has little exposure to real-money gaming. Major startups like Dream Sports, MPL, and WinZO have remained silent, while casual gaming and esports firms such as Ginger Games and NODWIN Gaming welcomed the bill but urged clearer distinctions between esports, casual gaming, and gambling. Some experts warn that the legislation risks damaging the broader AVGC (Animation, Visual Effects, Gaming, and Comics) sector.

This move follows years of tightening regulation, including a steep 28% tax on online gaming in 2023 and failed attempts at industry self-regulation. Policy experts argue the bill undermines investor confidence in India by introducing abrupt restrictions instead of predictable regulatory processes. The legislation now awaits approval from the upper house and the president before becoming law.