India Bans 'Real Money' Online Games in Crackdown on Gambling
The new law imposes severe penalties on operators and advertisers, marking a multi-billion dollar hit to the industry while aiming to protect public health and safety
India has passed a new law that effectively shuts down the country's multi-billion-dollar "real money online gaming" industry.
The legislation bans all games involving real cash, regardless of whether they are based on skill or chance, in a bold move to combat gambling and its social consequences.
The new law, the Promotion and Regulation of Online Gaming Bill, 2025, was approved by the Indian Parliament on 22 August.
It outlaws everything from skill-based games like fantasy cricket to chance-based games like poker, citing concerns over addiction, financial ruin, and mental health problems.
The government also sees these platforms as a breeding ground for money laundering and financial fraud.
The legislation imposes harsh penalties for violations.
Anyone operating a real money game faces up to three years in prison and a fine of up to 1 crore rupees.
For advertising these games, the penalty is a maximum of two years in prison or a fine of up to 50 lakh rupees. Repeat offenders face even tougher sentences of up to five years in prison and a 2 crore-rupee fine.
Financial service providers who facilitate these transactions will also be penalised. All offences are now classified as "immediately arrestable" and non-bailable, designed to ensure swift and decisive enforcement.
The law also paves the way for a new Online Gaming Authority, which will be responsible for setting standards, issuing licences, and enforcing the new rules.
The government is now actively promoting online games that do not involve money, such as e-sports and educational games, to foster a safer environment.
The economic impact was immediate.
Major gaming companies like Dream11 and Mobile Premier League (MPL) were forced to shut down their real money gaming services, while shares of related firms like Nazara Tech and Delta Corp have plummeted.
The sudden passing of the law, without prior consultation with the industry, has sparked discontent among investors and startups, with some considering a legal challenge.
Indian and international analysts view the government’s decision as a prioritisation of public safety and youth protection over short-term economic gain.
While the law standardises regulations across the country, a key challenge will be its effective enforcement, as online gambling often thrives on foreign platforms and alternative payment channels despite strict bans.
