Billions In Play, Now In Peril

A sweeping crackdown leaves huge stakes stranded, testing investor faith and raising fears of shrinking foreign inflows into Indian startups

- By Resham Suhail

WHEN the Parliament enacted the Promotion and Regulation of Online Gaming Act, 2025 on August 21, the tremors were immediate. The sweeping law criminalises all real-money gaming, including poker, rummy or fantasy sports, by classifying them alongside gambling. The government framed this not as an assault on innovation but as a shield for society.

Union IT Minister Ashwini Vaishnaw argued that decisive action was overdue, pointing to the "growing concerns over addiction, financial distress and the exploitation of vulnerable users." According to the government estimates, nearly 45 crore Indians had engaged with money-based gaming platforms and cumulative losses surpassed Rs 20,000 crore.

The intent is difficult to fault. Addiction, debt traps and even suicides linked to online betting have become impossible to ignore. India, policymakers argued, could no longer afford regulatory ambiguity. Yet while protectionist intent is clear, the ban's sweep has flattened an entire industry in one stroke, overnight.

Numbers Don't Lie