India Bans Real-Money Online Gaming, But Backs Esports
Crackdown shutters betting apps and ad revenue streams while esports gains regulatory backing.
News
- India Bans Real-Money Online Gaming, But Backs Esports
- 93% of India Inc May Deploy AI Agents by Next Year, Microsoft Study Shows
- India’s First AI Unicorn Fractal Analytics Files for $560 Million IPO
- Infosys to Buy Majority Stake in Telstra Cloud Unit for $153 Million
- Goa Expands AI Cancer Screening, Launches Lifesaving Drug Pricing Policy
- HPE Announces NVIDIA-Powered AI Upgrades for Next-Gen Workloads
India has outlawed real-money online gaming while carving out room for esports, as Parliament passed the Promotion and Regulation of Online Gaming Bill 2025, a measure the government framed as a consumer-protection and public-order response to fraud, addiction, and financial harm.
On Thursday, India’s Parliament approved the Bill, with virtually no debate. It now awaits presidential assent.
About 450 million Indians lose nearly ₹20,000 crore annually to real-money gaming, Union electronics and information technology minister Ashwini Vaishnaw said when introducing the bill in the Rajya Sabha, justifying the sweeping crackdown.
India’s online gaming sector has grown rapidly in recent years, valued at about ₹23,000 crore ($2.8 billion) in 2023 and expanding at nearly 20% annually. The user base stands at roughly 450 million, with projections putting the sector at ₹70,000 crore ($8.6 billion) by 2027.
The legislation targets games played with monetary stakes, barring their operation, advertising, and financial transactions. It also establishes a central regulator to oversee esports, educational, and social gaming. Violations carry penalties of up to three years in prison or fines as high as ₹1 crore.
At the heart of the government’s pitch: non-money gaming, especially esports, should be encouraged while eliminating betting-like platforms.
“The government wants to support esports and casual games. We want to protect the interest of the society,” Vaishnaw said.
Industry groups have pushed back, estimating that the ban could threaten more than 200,000 jobs and cut billions from tax revenue.
The pressure comes against a backdrop of financial strain, as the government imposed a 28% goods and services tax on online gaming in 2023, eroding margins and investor appetite.
Letters seeking intervention were sent to home minister Amit Shah ahead of the vote.
India’s only listed gaming firm, Nazara Technologies, may now have to write down its $122 million investment in PokerBaazi, Bloomberg reported.
Chief Executive Nitish Mittersain said the company is considering provisioning for the stake as a ban on online betting apps looms.
Nazara’s shares pared early losses, closing down 1.4% after dropping as much as 11% in Mumbai trading on Thursday.
Esports bodies broadly welcomed the bill, arguing that a clear split between competitive gaming and money-stake products could boost investment and event growth.
The bill marks a departure from the 2023 approach, when amended IT Rules contemplated permitting some real-money games if verified by self-regulatory bodies.
The new central law supersedes shifts enforcement to the Union government, with penalties for operators and promoters of banned apps.
The regulator will now need to define which titles qualify as permissible, set enforcement rules for app stores and payment providers, and establish transition periods for companies shutting real-money products while retaining esports or casual offerings.
Legal challenges are also likely, given the Centre–state overlap on gambling.
For players, the practical effects will include the removal of stake-based rummy, poker, fantasy, and similar apps from mainstream platforms, tighter ad restrictions, and more visibility for sanctioned esports tournaments.
For sponsors and teams, a shake-up is expected as real-money platforms unwind cricket and sports sponsorships.
