The Indian government has come down heavily on real-money gaming sites, and the Union Cabinet gave its nod to the “Promotion and Regulation of Online Gaming Bill, 2025.” The law—intended to be presented in the Lok Sabha—will propose a blanket ban on every online game of chance involving cash bets, echoing increasing concerns about addiction, financial loss, and national security.
Why Is the Ban Being Introduced?
IT minister in the Union government Ashwini Vaishnaw explained that the decision has come in the wake of several issues. Offshore gaming platforms, particularly those that are based in offshore destinations, have sometimes been abused for financing terrorism and money laundering as well as used as clandestine messaging platforms by terror outfits. These sites have also provided enforcement issues for Indian officials since they evade tax obligations and escape the clutches of state-level gaming legislation.
The minister mentioned in the formal Statement of Objections and Reasons:
“These platforms have, in some cases, been associated with unlawful activity such as money-laundering, financial fraud, financing of terrorism, and use as messenger platform for terror organisations, thus impacting the security and sovereignty of the country.”
Blanket Ban and Tougher Regulations
With the new Bill, an outright ban on advertisements for real-money gaming will be in place. The legislation will also allow the authorities to block access to illegal or unregistered gaming websites and take strict action against them. But the Bill continues to favor e-sports and skill games that don’t carry monetary risk.
The Ministry of Electronics and Information Technology (MeitY) will be the primary regulator for the online gaming industry, with wide-ranging powers to implement the new law and address non-compliance at a national level.
A Background
India has been closely monitoring the online gaming industry for some time.
In October 2023, online gaming platforms were also brought under a steep 28% GST regime, and since FY25, winnings on all online games are taxed at 30%. Offshore gaming platforms have also been brought under the Indian tax liability.
Last December, under the Bharatiya Nyaya Sanhita, unauthorised betting was made a criminal offence—with severe jail time and hefty fines.
The government has already blocked more than 1,400 betting and gambling websites/apps between 2022 and February 2025.
Concerns Over Addiction and Societal Harm
- Increasing reports of addiction among minors and financial distress among adults have driven the move.
- The Education Ministry has issued advisories to parents and teachers highlighting risks to children and teenagers.
- Broadcasters have been asked to air disclaimers about the financial dangers inherent in online gaming.
- The Bill’s assertion directly correlates online gaming losses with suicides and severe mental health problems, substantiating the requirement for drastic measures.
Consistent Controversy and Backlash
The legislation has generated fierce controversy:
Industry adherents justify that a general ban would suppress a flourishing digital sector, push customers towards illicit sites, and affect nascent segments such as online skill gaming and e-sports.
State governments also reiterate their constitutional right to make laws relating to betting and gambling, which is a State List.
Supporters of the Bill emphasize a one-nation, one-rule policy is indispensable to close regulatory loopholes and ensure uniform enforcement.
Who are challenging the Ban?
A number of top platforms and industry players have widely expressed serious concerns regarding the government’s suggested prohibition of real-money online gaming. Top operators such as Dream11, My11Circle, MPL (Mobile Premier League), Winzo, Games24x7, GamesKraft, Khelo Fantasy, and 99Games are said to be directly affected by the legislation. The executives of these firms caution that the prohibition could significantly destabilize business and jeopardize the sustainability of some of India’s most rapid digital ventures.
Trade associations in the industry, such as the All India Gaming Federation (AIGF) and the E-Gaming Federation (EGF), have pointed out the economic implications—putting the ban’s potential cost at a predicted ₹25,000 crore of foreign direct investment on the line and potentially jeopardizing more than 200,000 jobs. They also warn that a blanket prohibition is likely to push tens of millions of users to unregulated offshore gaming websites, making it harder to implement consumer protection and tax enforcement. This pushback by respected industry voices highlights the serious challenges the industry is confronting in the face of the current regulatory crackdown
The Road Ahead
The new Bill, when it is passed, will redefine India’s online gaming scenario. Real-money gaming apps and online betting are completely banned, with only e-sports and legally sanctioned skill-based games permitted to remain operational. Enforcement rules will be kept centralized within MeitY, providing the Centre with much more active oversight.
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