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September 07, 2025

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THE WEEK India

The ban on real-money gaming apps has forced companies to pivot

- NACHIKET KELKAR

ALL BETS ARE OFF

NEARLY THREE MONTHS ago, a couple in Maharashtra's Dharashiv district poisoned their two-year-old child before ending their lives. The father, a tractor operator, had piled up huge debt betting on online games and saw no way out.

It's a chilling story, but not a one-off.

In the past few years, lakhs of Indians have embraced gaming apps, betting real money in the hope of winning big, sometimes even borrowing to do so. Since 2023, there have been 32 online gambling-related suicides in Karnataka alone, with many of the suicide notes asking the government to ban such apps.

On August 20, the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025. The bill sought to ban games where “financial stakes are involved”, whether based on chance or skill. Rajya Sabha passed it the following day and President Droupadi Murmu assented to it on August 22.

The press note read: “The legislation is designed to curb addiction, financial ruin and social distress caused by predatory gaming platforms that thrive on misleading promises of quick wealth. It reflects the government's resolve to safeguard families while guiding the digital economy towards safe and constructive growth.”

Union IT Minister Ashwini Vaishnaw said that about 45 crore people were affected by online money games and had lost more than ₹20,000 crore.

Within 24 hours, platforms such as Dream11, My11Circle, Zupee and WinZO stopped gaming services that involved real money. And with that, thousands of families were left staring at an uncertain future.

“News that such a bill was going to be introduced came on August 19. But it didn’t look like it would get cleared so soon,” said Varsha Mahajan, who worked for one of the online gaming companies. “The bill was passed on August 21 and the founder announced that we will have to close all operations. It was suddenly our last day and everyone was shattered.”

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