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The Real-Money Gaming Reckoning
The Business Guardian
|August 21, 2025
India's Online Gaming Bill bans predatory money-games but champions e-sports and skill gaming, transforming gaming from a social menace into a digital growth engine.
The Promotion and Regulation of Online Gaming Bill, 2025 was passed by the Lok Sabha on August 20, 2025. It creates a legal framework to promote and regulate India's fast-growing online gaming industry (including e-sports, social/casual games and educational games) while banning real-money gaming (RMG).
In practice the Bill prohibits any online game where money is staked for cash prizes - for example fantasy sports, poker, rummy or lotteries - and criminalizes their advertisement and financial transactions. All such RMG platforms (even foreign ones accessible in India) can be blocked by the new gaming authority. Violators face heavy penalties - generally up to 3 years in jail and/or fines (up to Rs 1 crore or more) for running or facilitating illegal money-games.
At the same time, the Bill explicitly protects and encourages skill- or subscription-based gaming (like e-sports, recreational mobile games, and online chess) under government oversight. In short, the law means that gambling-style gaming is outlawed, while promoting the rest of the digital gaming sector with stricter safeguards for users.
WHAT JUST CHANGED
Rapid growth and social impact: India's gaming sector has expanded explosively - estimated at ~$3.8 billion and growing - and over 450 million Indians play online games. Government sources noted that unchecked online money-games have "grave social, economic, and psychological consequences," especially for young and vulnerable users. Widespread addiction, financial ruin and fraud were linked to these platforms. Aggressive marketing (including celebrity endorsements) has drawn many youth into high-risk betting games.
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