Online Gaming Bill 2025: India Bans Real-Money Games

Over the past few years, India has seen an explosive rise in the online gaming sector, with over millions of users engaging in different gaming applications and platforms. The real-money gaming market is at the heart of this growth. This market alone, which includes well-known games like poker, rummy, and fantasy sports, generated an incredible 85.7% of industry income in 2024.

However now, the Indian Parliament has made a firm move to change the online gaming scene, in light of different concerns, such as user protection and general impact on the society, that have come to the forefront. The Promotion and Regulation of Online Gaming Bill, 2025, which outlaws real money games, was approved by both the houses of the Parliament and also received the President’s assent in mid-august of 2025, indicating a significant change in policy. This bill’s main goals are to provide a strong legislative framework, regulate, support, and stimulate the online gaming industry for economic growth and innovation, and guarantee a developed and secure digital environment for all Indians.

This article examines the bill’s main features, considers how it might affect the gaming sector, and assesses the wider social and economic ramifications of such regulations in a society that is increasingly becoming more digitally connected.

Background and Pre-Bill Scenario

The 2025 Bill has been passed with the objective of overseeing the flourishing gaming industry while tackling issues of addiction, fraud, and security. Prior to this bill, several Indian states such as Nagaland and Haryana had their own distinct laws and regulatory approaches for online gaming, specifically real-money games of chance such as gambling, while some states let them run unregulated. As per the Nagaland Games of Skill Act 2016, gambling involving betting based on chance was strictly prohibited but licenses were given to game operators which hosted online skill-based games. The Tamil Nadu government’s anti-gambling law also made illegal online gambling and any online games of chance played with stake.

Thus, it can be observed that states in India previously made a distinction between games based on two different factors. Firstly, whether there were any money or stakes involved and secondly, whether the game was skill-based or chance based. However, the current bill has removed this distinction and made illegal all online-real money games, even if skill-based. In lieu of divergent state laws that previously existed, the 2025 bill created a national regulator under the Ministry of Electronics and Information Technology to enforce compliance, categorize games, and standardize regulations in India. Thus, this bill will replace all existing state laws with regards to online gaming.

Key Reasons behind Passing the Online Gaming Bill

As mentioned previously, the Indian Gaming Industry, valued at over ?31,000 crore, is home to numerous global investors and fantasy sports applications like Mobile Premier League and Dream11. Such an industry, specifically the real-money gaming sector, which is also a huge source of revenue for the government, has now been phased out. In fact, all online gaming, whether skill-based or chance-based, has been subject to a 28% GST since October 2023. What then is the rationale behind passing this bill that outlaws real-money gaming in India?

The first major reason cited by the government is that it was high time for a legal framework to come into picture, that shall regulate the gaming ecosystem comprising different segments such as casual and social games, online money games etc. The government cited multiple instances where several groups of people, specifically the youth and the economically weaker sections, have been financially and psychologically harmed due to unexpected outcomes of events where monetary return was promised by the game operators. In fact, the uncontrolled expansion of the online gaming sector was also proven to be linked to various illegal activities such as evasion of tax, money laundering, and in certain scenarios even financing of terrorism. Thus, in the interests of public order and national security, it was important for the union government to intervene.

Key Provisions of the Online Gaming Bill

One of the major facets of this bill is that in contrast to earlier attempts at regulation that made a distinction between skill-based games and chance-based, this law clearly classifies online games, as below:

• E-sport: Participated in as part of multisport competitions, featuring planned competitive activities between teams or individuals, with results based only on mental and physical agility.
• Online Social Games: These are provided just for amusement, leisure, or skill-building and do not entail wagers or participation in the hope of earning money.
• Online Money Games: This does not include e-sports, but it includes any game where a user pays fees, deposits money, etc., with the hopes of winning, which implies financial and other enrichment in exchange of money or other stakes, regardless of whether the game is based on talent, luck, or both. Dream11, poker and rummy applications are a few examples that come under this category.

The online gambling bill essentially outlaws all real-money gaming platforms, whether the games are skill-based or chance-based i.e., games falling under the third category. The Bill also calls for the establishment of an Authority to oversee the sector's regulations, set strategic plans, and coordinate governmental assistance.

Implications of the Bill on Platforms & Way Forward

• Unclear Notification Date: Post this Bill, platforms such as Dream11, Winzo, GamesKraft, and My11Circle, will have to shut down their services in India. However, considering that the official notification date of this bill is not out yet, it is still unclear whether these companies will have to abruptly shut down their services, or will some time be given for them to slowly phase out. That said, there is no provision in the bill that mentions a staggered roll-out hence, it can be presumed that the bill will be implemented all at once, from the date of enactment.
• Shutting down operations of real-money games: Certain sources claim that operators such as Dream11 have already begun their preparations to shut down the real-money wing. A transition plan has been presented to both contract and full-time employees, and the company is now focusing on its other verticals including FanCode and Dream Game Studios. It also declared on public news channels that it has eliminated all paid competitions on its platform and will only function as a free-to-play online social game. Furthermore, Dream11 no longer sponsors the Indian cricket team after the Board of Control for Cricket in India formally terminated its partnership with the fantasy sports website.
• Exploring International Markets: Gameskraft Technologies, a Bengaluru-based company that runs the well-known rummy platform ‘RummyCulture’, has also announced that it is closing its operations in India. Countries such as Brazil and Africa are looked at where online real money gaming/ gambling is legalised and regulated. In America, the situation is very evolving, and the legality varies from state to state. Thus, these gaming platforms might either shift to non-real money options or start focussing on international markets.
• Add-based revenue models: Another option that these platforms/ game operators can consider is pivoting to add-based revenue models as per which revenue can be generated through advertisements on their applications rather than taking money from players.
• What to avoid: However, circumventing India laws in the form of offshore dealings, crypto-based payments etc. in any form or manner should be avoided. These actions might lead to bans, fines or even criminal consequences under India’s legal framework.

Conclusion

The prohibition of real money gaming is a reflection of India's strategy to managing its digital economy and goes beyond simple regulatory policy. The Bill aims to address growing concerns about addiction, financial losses, and societal damage by enacting a blanket prohibition on all money-based games, regardless of whether they involve skill or chance. By acknowledging e-sports, educational, and social gaming as safe and valid forms of enjoyment and economic development, it creates a new future for these industries. To create a vibrant, regulated environment around these industries, the government has committed to funding awareness campaigns and infrastructure.

However, there has also been debate around this piece of law, claiming it to be a double-edged sword. Many critics claim that this ban could lead to an underground grey market of gaming on offshore servers. It has also raised constitutional challenges under Article 19(1)(g) of the Indian constitution and claims of loss of revenue in the form of GST and other forms of tax. Nevertheless, the government has responded saying this is a sacrifice that they are willing to make in the larger interests of the public.

The government's ability to strike a balance between business involvement and enforcement, as well as whether it can turn India into a worldwide centre for e-sports and ethical online gaming, will determine its final influence. The bill essentially ends one chapter in the nation's gaming history while beginning a new one.