The Indian government has dealt a decisive blow to the booming real-money gaming industry. The Promotion and Regulation of Online Gaming Bill, 2025, passed in the Lok Sabha this week, bans all forms of money-based online games — from poker and rummy to fantasy sports — while carving out a separate path for e-sports and skill-based digital entertainment.

A Complete Ban on Cash-Based Gaming

The bill imposes a blanket prohibition on games played with monetary stakes, regardless of whether they involve skill or chance. This includes real-money poker, rummy, fantasy sports, teen patti, and similar apps that have attracted millions of Indian users in recent years.

Key provisions include:

Heavy penalties: Operators face jail terms up to three years and fines of ₹1 crore.
Celebrity liability: Influencers and actors endorsing banned platforms can face up to two years in jail and a fine of ₹50 lakh.
Banking clampdown: Financial institutions processing RMG transactions risk prosecution.
Strong enforcement powers: Authorities may conduct searches, seize servers, and block content without warrants in serious cases.

Beyond Bengaluru & Mumbai: How India’s Emerging Cities Are Powering the Startup Boom

Govt’s Rationale: Public Safety & Financial Risk

According to government data, nearly 450 million Indians collectively lose around ₹20,000 crore annually through real-money gaming. Lawmakers highlighted issues such as:

Addiction among youth
Financial losses leading to debt and suicides
Risks of money laundering and terror financing
Increasing cyber fraud incidents through shady offshore apps

Union Minister Ashwini Vaishnaw, while introducing the bill, said:

“The youth of India must be protected from predatory platforms that exploit their aspirations. The bill ensures that digital gaming thrives, but not at the cost of social security and financial integrity.”

A Boost for E-sports, Not Gambling

While banning RMG, the government has opened doors for e-sports, casual games, and educational gaming. The bill defines these as “non-monetary, skill-based entertainment platforms” and encourages their growth under a new central regulatory authority.

This regulator will classify games, issue licenses, and handle disputes — similar to how SEBI regulates financial markets.

Industry Outcry: “A ₹20,000 Crore Setback”

India’s gaming industry leaders reacted sharply to the development. Bodies like the All India Gaming Federation (AIGF) and Federation of Indian Fantasy Sports (FIFS) warned that the ban could:

Wipe out over 200,000 jobs across tech, marketing, and operations
Push millions of Indian users to illegal offshore platforms
Cause ₹20,000 crore in annual tax revenue loss
Deter foreign investors who had bet on India’s gaming growth story

Roland Landers, CEO of AIGF, said:

“Instead of a nuanced regulatory framework, the government has opted for prohibition. This will push players into unregulated, unsafe markets.”

What Happens Next?

The bill now moves to the Rajya Sabha for clearance before receiving Presidential assent. Legal experts expect challenges in court, especially on grounds of state vs. central jurisdiction and violation of the right to trade under Article 19(1)(g).

If enacted into law, the bill will transform India’s online gaming landscape overnight — killing the ₹30,000-crore RMG industry while trying to nurture an e-sports-first digital ecosystem.