The Indian government’s bill to ban real-money gaming (RMG) at the federal level has rapidly advanced. Just in the middle of last week, the Lok Sabha – the lower house of India’s Parliament – approved the Online Gaming Promotion and Regulation Act 2025. By Friday, after passing through the Rajya Sabha (the upper house), the document was signed into law by the country’s President Droupadi Murmu.
Ashwini Vaishnaw, Minister of Electronics and Information Technology, whose department drafted the bill, presented it in the Lok Sabha and outlined its objectives. The government is particularly concerned about illegal gambling and its psychological and financial impact on consumers.
“Online money gaming has become a matter of serious concern as such platforms lead to addiction, are used for fraud and cheating, and also result in financial losses for people,” the minister said, as quoted by the Deccan Chronicle.
The law will have a major impact on India’s gaming industry. However, it will not result in the closure of licensed markets in Goa, Daman and Sikkim, as well as the planned market in Karnataka. At the same time, it will prohibit federal-level operations.
Key provisions of the bill include:
- Support for esports and online social games, which the government views as both grassroots and professional activities comparable to traditional sports.
- A ban on any federal money games with cash prizes. The law does not differentiate between “games of skill” and “games of chance.”
- An unclear stance on sports betting, though concerns about illegal betting operations are explicit. Paid fantasy sports as well as games like rummy and poker will be banned.
- A ban on running or supporting such games, including advertising, marketing, banking, and fintech services.
- A licensing system for companies operating in esports and social gaming.
- Creation of a new regulator to grant or reject licenses.
- Penalties: ₹1 crore (€110,000) for the first offense; ₹2 crore (€220,000) or up to three years in prison for repeat violations. Advertising RMG could result in up to two years in prison and a fine of ₹50 lakh (€55,000), rising to ₹1 crore for repeat offenses.
The vote in the lower house had already sparked strong outrage from India’s online gaming sector. Home Minister Amit Shah received numerous appeals from industry organizations urging him to intervene.
The Federation of Fantasy Sports (FIFS), E-Gaming Federation (EGF), and All India Gaming Federation (AIGF) issued a joint statement, warning that the ban would destroy the country’s skill-gaming sector and harm not only the economy but also India’s ambitions to become a global tech leader.
“On behalf of the millions of young entrepreneurs, developers, and professionals in India’s digital skill-gaming sector, we write with the deepest respect and gravest concern about the draft bill seeking to ban all real money games, including those based on skill.
We urgently request your intervention and an opportunity to present our case with solutions that ensure responsible regulation while protecting users.
We firmly believe that progressive regulation, not prohibition, is the way forward. With your support, India can set a global example by creating a safe, transparent, and thriving gaming ecosystem,” the statement read.
The bill aligns online behavior rules with provisions of the Bharatiya Nyaya Sanhita (BNS) 2023 – India’s new criminal code. Under the BNS, operating or participating in unauthorized betting or gambling carries fines and imprisonment from one to seven years.
The same applies to illegal lotteries. Similar measures will now extend to online spaces: up to three years in prison and fines of up to ₹1 crore. Advertising RMG could bring up to two years in prison and fines of ₹50 lakh.
Fantasy sports, while involving an element of skill, are legally considered RMG in India. This means companies in the sector will be forced to shut down. The largest player, Dream11, has already announced the closure of its RMG division.
This could impact Indian cricket, as Dream11 is the sponsor of the national team and several clubs. The Board of Control for Cricket in India (BCCI) has already begun talks about the future of the partnership.
Other companies – My11 Circle, MPL, Winzo, GamesKraft, 99Games – are expected to follow. Probo has already shut down its fantasy sports and opinion-trading app Team 11. Even global giant Flutter has announced its decision to withdraw its Junglee Games subsidiary from India.
Online sports titles such as Real Cricket and EA Sports FC fall under esports and currently remain unaffected.
Minister Vaishnaw even stressed that the government plans to create a specialized authority to support esports in India. The esports community cautiously welcomed the move, noting the importance of clearly distinguishing between esports, online gaming, social games, and real money gaming.
Co-Founder and Managing Director of NODWIN GAMING Akshat Rathee said: “The government’s intent to recognize and promote esports is a positive step toward building a globally competitive ecosystem. However, precise definitions are essential to avoid confusion among regulators, players, investors, and organizers.”
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