Real-Money Games Face Complete Ban

Centre points to mental health issues, financial fraud in new bill

- Shouvik Das

The worst fears of India's gaming companies are coming true, with a new law set to prohibit all online games that prompt players to shell out money. Armed with provisions for prison terms and stiff penalties for violators, the law is expected to deliver a body blow to India's real-money gaming sector, dominated by companies such as Dream11, Gameskraft and Games24x7. The bill treats fantasy games and gambling alike and makes no difference between games of skill and chance, effectively criminalizing an industry that generated over $2 billion in revenue last year from millions of gamers, advertisements, and in-app purchases.

The government cited "severe socio-economic and psychological consequences" from the gaming industry's unregulated growth, in the bill approved by the Union cabinet on Tuesday. Online real-money games have "led to significant mental health issues...and behavioural problems linked to prolonged gaming," the Promotion and Regulation of Online Gaming Bill, 2025 said.

Mint has seen a copy of the bill, which is likely to be presented in the Lok Sabha on Wednesday. The bill proposes a complete ban on any game that incorporates financial transactions, which it declares as criminal offences that can attract up to five years of imprisonment and ₹1 crore in penalty.

Meity also proposed setting up a designated authority to monitor the online gaming sector, with a total budget allocation of ₹70 crore, including ₹20 crore for recurring annual expenses.

Anyone advertising these games will face penalties as well. Any bank enabling transactions through these apps will also face penalties.