Government faces pressure for immediate talks regarding proposed legislation governing internet-based games
The Promotion and Regulation of Online Gaming Bill, 2025, recently made law in India, has sent shockwaves through the online gaming industry. The comprehensive ban on all types of online real-money gaming, including gambling, betting, and fantasy sports, has significant implications for the industry, its revenue, and employment landscape.
The bill immediately renders platforms providing real-money games such as Dream11, MPL, PokerBaazi, and others illegal in India, forcing them to shut down their money-based services. With the Indian online gaming market valued at around ₹13,000 crore but aiming to reach ₹66,000 crore by 2028, the ban could cause substantial revenue losses to companies and the government through lost taxes. The measure might also divert users to offshore or illegal money gaming platforms, undercutting domestic platforms and tax collection.
The ban is expected to lead to job losses in the real-money gaming segment, affecting thousands employed in product development, operations, marketing, and customer support for these platforms. However, the law also promotes e-sports, casual games, and educational apps, introducing a regulated structure aimed at nurturing safe and creative gaming. This could create new jobs and opportunities in non-money-based gaming, including areas like e-sports tournaments, game development, and gaming content creation.
The government has empowered authorities with strong enforcement powers, including search and seizure, and heavy penalties (up to 3 years imprisonment and fines up to ₹1 crore for violations). Advertisements for money-based games are banned, and endorsements by celebrities or influencers are criminalized.
A key government rationale for the law is to protect users—especially youth—from addiction, fraud, financial distress, and family problems linked to money-based games. The law aims to create a safer digital environment by encouraging healthy gaming alternatives while curbing predatory financial gaming practices.
The Indian gaming industry has attracted Foreign Direct Investment (FDI) of over ₹25,000 crores till June 2022. The proposed ban could deter global investment and investor sentiment, potentially weakening India's position as a digital innovator.
The bill is intended to put an end to unauthorized online betting and shutting down regulated online gaming platforms would drive players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators. This could pose serious harm to Indian users and citizens.
The Ministry of Electronics and Information Technology could be designated as the central regulator for online gaming, aiming to bring online gaming platforms under a legal framework. The bill is expected to be introduced in the Lok Sabha on Wednesday.
[1] "India's online gaming market set to grow to $3 billion by 2028, but ban could derail progress" - The Economic Times [2] "Online gaming industry in India: An overview" - Medium [3] "Online gaming in India: The rise, the regulation, and the future" - The Indian Express [4] "Impact of the Online Gaming Regulation Bill on the Indian gaming industry" - Business Today [5] "The online gaming regulation bill: A comprehensive analysis" - Live Law India
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