Friday, December 5, 2025

India Moves to Ban Money Based Online Gaming in New Online Gaming Bill 2025

The Indian government is moving to completely ban all real-money gaming platforms through the proposed Promotion and Regulation of Online Gaming Act, 2025. This legislation targets both skill-based and chance-based games, marking a dramatic shift that could destroy a Rs 2 lakh crore industry.

What the Bill Actually Does

Here’s the thing – this isn’t just about limiting gaming. The draft bill completely prohibits any online game where players deposit money to participate. That means popular platforms like Dream11, Games24x7, WinZO, and Mobile Premier League would be forced to shut down operations entirely.

The government plans to ban financial institutions from processing any transactions related to real-money gaming. No bank transfers, no digital wallet payments, nothing. It’s a complete financial blockade.

Heavy Penalties Coming

The proposed penalties are serious business. Companies offering real-money games could face up to three years imprisonment and fines reaching Rs 1 crore. Even celebrities promoting these platforms risk two years in jail with Rs 50 lakh penalties.

Industry Pushback and Economic Impact

Gaming industry bodies are warning of massive economic damage. The sector currently employs over 200,000 professionals and has attracted Rs 25,000 crore in foreign investment. Industry leaders predict the government could lose Rs 20,000 crore annually in tax revenue.

What this really means is that India’s 500 million gamers might shift to unregulated offshore platforms. Instead of taxed, regulated Indian companies, players could end up on dangerous international betting sites with zero consumer protection.

The Real Problem

The bill stems from concerns about money laundering, national security threats, and tragic incidents where people lost life savings on gaming platforms. But industry experts argue the government is conflating legitimate skill-based gaming with illegal offshore gambling operations.

What Happens Next

The bill is expected to be tabled in Parliament this week. If passed, it would establish a dedicated regulatory authority while effectively killing the legal real-money gaming sector in India.

The gaming industry built over the past decade could vanish overnight, pushing millions of users toward unregulated alternatives that offer none of the safeguards legitimate platforms provide.

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