Govt kills real-money gaming with Gaming Bill in Lok Sabha

The Centre on Wednesday passed the Bill on the Promotion and Regulation of Online Gaming Bill, 2025, proposing a blanket ban on real-money games (RMG) in India. Piloted by IT Minister Ashwini Vaishnaw, the draft law outlaws all online games involving monetary stakes or financial returns, covering fantasy sports, rummy, poker, opinion trading, among others.

The Bill shuts the door on the long-running “skill versus chance” debate by treating all money games as illegal. It also extends to offshore platforms accessible in India, giving the government extra-territorial powers to act against foreign operators.

To choke supply lines, the Bill bars banks, NBFCs, wallets, UPI, and payment gateways from processing deposits or withdrawals for such games. Advertising and endorsements, including by celebrities and influencers, are prohibited.

The only exemptions are e-sports and casual or social games. E-sports will be recognised as competitive sports where only entry fees are charged. Social games may continue if they don’t involve winnings, though developers can charge subscription or access fees.

The legislation comes with stringent enforcement. Offences are cognizable and non-bailable, meaning police can arrest without a warrant and conduct raids across physical or digital premises. Offering money games could invite up to three years in jail and Rs 1 crore in fines. Advertising may attract two years’ imprisonment and fines of Rs 50 lakh, while payment facilitation carries the same punishment as offering. Repeat offences trigger harsher mandatory terms of 3-5 years and fines of Rs 1–2 crore.

Liability extends beyond companies to promoters and executives. Directors, managers, and officers in charge will be personally accountable unless they prove lack of knowledge or due diligence, raising compliance risks for management teams.

The Bill also proposes setting up an Authority on Online Gaming to register platforms, categorise games, issue compliance codes, and handle disputes. The body will have the final say in deciding whether a game qualifies as e-sports, social or money-based. As per the Cabinet note, the regulator will require Rs 50 crore to set up and Rs 20 crore annually for operations.

The impact could be severe. RMG accounted for nearly 85% of India’s gaming revenues in FY24, around $3.2 billion out of $3.7 billion. The overall market, pegged at $3.7 billion last year, was expected to grow to $9.1 billion by FY29, led by RMG. The sector also supports 2–3 lakh jobs, according to consulting firm PwC estimates.

Startups such as Dream11, MPL, Probo, and Games24x7 face existential risks, while investors who have poured billions into RMG may see value erosion. The government, however, maintains the ban is needed to curb addiction, financial distress, fraud, and even terror-funding risks.

With the bill passed, the writing is on the wall: real-money gaming’s future in India is grim.