India Bans Real-Money Gaming, Industry Warns of $23B Hit
August 21, 2025
India’s lower house of parliament on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, a sweeping piece of legislation that promotes esports and casual gaming without monetary stakes but imposes a blanket ban on all real-money games. The move is expected to disrupt billions of dollars in investment and significantly impact the country’s fast-growing real-money gaming sector, with stakeholders warning of widespread shutdowns.
The legislation prohibits real-money games nationwide — whether based on skill or chance — and bans both advertising and financial transactions linked to them. It further restricts banks and financial institutions from processing payments for such games. Violators could face imprisonment of up to three years, fines of up to ₹10 million (approx. $115,000), or both. Celebrities endorsing these platforms could also face up to two years in jail or a fine of ₹5 million (approx. $57,000).
Introducing the bill, India’s IT minister Ashwini Vaishnaw said, “Priority has been given to the welfare of society and to avoid a big evil that is creeping into society.” The legislation comes in response to multiple incidents of harm, including reports of suicides linked to gaming losses.
However, industry stakeholders argue that the bill risks punishing compliant domestic operators while leaving illegal offshore betting and gambling apps unchecked. iSportConnect reviewed a letter sent to Prime Minister Narendra Modi on Tuesday by three industry bodies — the Federation of Indian Fantasy Sports, All India Gaming Federation, and E-Gaming Federation. The letter, representing major companies including Dream Sports, MPL, WinZO, Gameskraft, Nazara Technologies, and Zupee, warned that the ban could benefit offshore gambling operators while forcing responsible Indian businesses to shut down.
The industry bodies highlighted that regulated real-money gaming startups in India currently have a combined enterprise valuation of ₹2 trillion (approx. $23 billion), generate ₹310 billion (around $3.6 billion) in annual revenues, and contribute ₹200 billion (approx. $2.29 billion) in taxes. They projected a 28% CAGR that could double the sector’s size by 2028. Instead, the proposed ban could result in the loss of more than 200,000 jobs and the closure of over 400 companies.
The associations also wrote to Indian Home Minister Amit Shah raising similar concerns. Publicly listed Nazara Technologies, which has investments in real-money platforms such as PokerBaazi and Classic Rummy, saw its share price fall nearly 13% on Wednesday, though it later clarified it has no direct exposure to these businesses.
Critics, such as policy experts, argue the bill could fail the test of proportionality under Article 19(1)(g) of the Constitution, which guarantees the right to practice any profession or business. Instead of curbing harm, they warn, the legislation risks dismantling compliant Indian platforms while strengthening the very offshore and illegal operators it seeks to target.