Gaming ban: Are India's policymakers really listening?

Policymaking tends to go wrong without unbiased feedback and robust data analysis

- VIVAN SHARAN

The government's Promotion and Regulation of Online Gaming Bill, 2025, approved by both Houses of Parliament, aims to promote e-sports and social games while banning real money gaming (RMG)—or games that involve stakes purchased with money, directly or indirectly, including by means of virtual assets.

The reasons cited in the bill for its RMG ban include the social, financial, psychological and public health harms of such games, particularly among young individuals and economically disadvantaged groups, apart from the risks of financial fraud and money laundering. The bill also notes the absence of a dedicated institutional and legal framework for the promotion of e-sports and social games in India.

As expected, reactions are polarized. RMG players, employees, platform founders and investors in this industry are naturally anxious about the consequences. The state, on the other hand, has defended its decision, stressing that the public interest outweighs tax revenues or foreign investment flows.

There are holes in this reasoning. For instance, India is nearly at net-zero foreign direct investment. So, it is puzzling that the state should clamp down on a field that's still attracting capital. It is worth noting that the Lok Sabha passed the bill without debate, while some Rajya Sabha members wanted it sent to a select committee for examination.