Real-Money Gaming & Retail Derivatives

INDIA'S DOUBLE CRACKDOWN

- Deepak Sanchety Writer

In August 2025, the Government of India enacted the Promotion and Regulation of Online Gaming Act, 2025, a law that effectively banned all real-money games (RMG). The prohibition extended to fantasy sports, poker, rummy, opinion trading apps, and even so-called "skill-based" games where money was staked for winnings. The Act also created the National Online Gaming Commission (NOGC) to oversee the sector—though, paradoxically, its first move was to outlaw the very industry it was meant to regulate.

WHY THE BAN?

Authorities cited multiple reasons:

Addiction and Social Harm: A spate of suicides and debt traps linked to online gaming had shaken public opinion. Families reported youngsters losing lakhs of rupees, sometimes leading to extreme outcomes.

Money Laundering Risks: Officials feared that RMG platforms could be misused for laundering and terror financing.

Patchwork of State Laws: Different states had contradictory positions on whether games like rummy were legal. A central law promised uniformity.

IMMEDIATE FALLOUT

The consequences were swift. Platforms such as Dream11, MPL, Zupee, and PokerBaazi suspended operations. MPL laid off 60% of its India staff. Dream11 pulled out as Indian cricket's title sponsor, leaving the BCCI scrambling. A23 (Head Digital Works) challenged the law in court, calling it unconstitutional. Meanwhile, many players migrated to offshore apps or informal betting channels.

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