The Centre passed the Bill on the Promotion and Regulation of Online Gaming Bill 2025 on August 20, 2025, implementing a comprehensive ban on real-money games (RMG) in India. IT Minister Ashwini Vaishnaw piloted the legislation that outlaws all online games involving monetary stakes or financial returns, effectively ending the dominant revenue segment of India's digital gaming ecosystem.
The Bill treats all money games as illegal, eliminating the long-running "skill versus chance" debate by implementing a blanket prohibition. The legislation extends beyond domestic platforms to offshore operators accessible in India, granting the government extra-territorial enforcement powers.
Financial infrastructure restrictions prohibit banks, NBFCs, wallets, UPI systems, and payment gateways from processing deposits or withdrawals for such games.
| Market Segment | FY24 Revenue | Market Share | Impact
|
|---|---|---|---|
| Real-Money Gaming | $3.2 billion | 85% of total gaming | Complete elimination |
| Total Gaming Market | $3.7 billion | 100% | Projected $9.1 billion by FY29 at risk |
| Employment | 2-3 lakh jobs | Sector-wide | Significant job losses expected |
The legislation establishes cognizable and non-bailable offences, allowing police arrests without warrants and raids on physical or digital premises. Offering money games attracts up to 3 years imprisonment plus ₹1 crore fine, whilst advertising violations carry 2 years imprisonment plus ₹50 lakh fine. Repeat offences mandate 3-5 years imprisonment plus ₹1-2 crore fines, with personal liability extending to company executives.
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Only two categories remain legal under the new framework: e-sports recognised as competitive sports where only entry fees are charged, and social games permitted without winnings, though developers can charge subscription or access fees. The Bill establishes an Authority on Online Gaming requiring ₹50 crore setup and ₹20 crore annual operations budget for platform registration, game categorisation, and dispute resolution.
As per news reports, major startups facing existential threats include Dream11, MPL, Probo, and Games24x7, with investors who invested billions in the RMG sector facing substantial value erosion. The government justifies the ban as necessary to address gaming addiction, financial distress among users, fraud prevention, and terror-funding risks, representing a decisive shift in India's online gaming approach.
The Government's passage of the Online Gaming Bill 2025 on August 20, implementing a comprehensive real-money games ban, eliminates the $3.2 billion RMG market, representing 85% of India's gaming revenues.
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Published on: Aug 21, 2025, 1:15 PM IST
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