Indian government passed a bill banning real-money online games, impacting the $3.8 billion gaming industry. Awaiting presidential assent, the law aims to curb gambling addiction and financial fraud.
Indian government has passed the Promotion and Regulation of Online Gaming Bill, 2025, marking a turning point for the country’s booming digital gaming industry. Cleared by the Lok Sabha on Wednesday and the Rajya Sabha on Thursday, the bill bans all real-money online games—apps where players pay to win cash rewards.
The legislation now awaits the President’s assent before becoming law. Lawmakers say the move was necessary to curb rising cases of gambling addiction, money laundering, and financial fraud linked to such platforms.
A Big Blow to a $3.8 Billion Industry
The decision is expected to shake up India’s $3.8 billion gaming sector, which had seen rapid growth with the popularity of fantasy sports and online card games. Companies like Dream11, Games24x7, and Mobile Premier League (MPL) have drawn global investors, fueling one of the fastest-growing digital markets in the country.
But the ban could bring sweeping consequences—job losses, declining revenues, and potentially, the shutdown of many smaller firms. Even listed companies are feeling the heat. Nazara Technologies Ltd., India’s only publicly traded gaming firm, has already indicated it may be forced to write down its stake in PokerBaazi, an online betting platform.
The Human Cost Behind the Bill
The move was largely driven by growing public outcry over the social damage caused by online gambling. Omprakash Rajenimbalkar, a Member of Parliament, highlighted one such tragedy while voicing support for the ban.
“On 30th July 2025, I raised the dangers of platforms like Junglee Rummy and Dream11 in Parliament, highlighting the tragic case from Bavi village, where an entire family lost their lives due to online rummy addiction,” he wrote on LinkedIn.
“I had urged the Government to take direct responsibility and bring a nationwide law to protect our youth and families from such destructive addictions. Today, I am glad to see the Government respond by introducing a bill to ban real-money online gaming. This is a vital step towards safeguarding lives and ensuring social well-being.”
Industry Pushback: Jobs and Revenue at Risk
Not everyone is cheering. Industry experts warn that the fallout could be severe, both for employment and government finances.
“2,00,000 jobs gone. Rs 20,000 crore GST lost. That’s the real cost of the Online Gaming Bill 2025,” wrote Vinayak Seth, Founder of VinFinCapital, in a LinkedIn post.
He pointed out that the sector employs lakhs of people across technology, operations, and marketing roles, with many small gaming companies likely to shut down. “Most gaming companies will only be able to retain 10–20% of their workforce,” Seth cautioned.
On the revenue side, the industry contributed an estimated Rs 20,000 crore annually in Goods and Services Tax (GST). With the ban, this stream could disappear entirely. “Will the government hike taxes elsewhere to fill this gap?” Seth asked, suggesting that thoughtful regulation, rather than an outright ban, could have protected both jobs and revenue.