The Indian gaming sector has seen massive traction over the period. We have seen the rise of billion-dollar companies and millions of funds raised. Well, many companies spent crores for advertisements, and a big set of brand deals also took place. Whenever there is a mention of any sport that you watch on the website or any OTT, starting from the title to the jersey, these companies have acquired every opportunity to promote themselves. They sponsored cricket, kabaddi, and whatnot. Many leagues were boosted with the sponsorships these companies gave. And even these companies roped in many celebrities to promote their apps. Every app promoted that players can earn money by playing; some named it as fantasy gaming and skill games, but when we dig deeper, it is a form of betting, where millions of people lost money by betting their hard-earned money.
With more than 400 million gamers, the sector has evolved into a serious business opportunity, especially in real-money gaming and skill-based platforms. However, the industry’s growth has been accompanied by increasing scrutiny from policymakers. In response, the government has recently introduced a new online gaming bill aimed at regulating the space, protecting users, and curbing illegal betting practices. The Online Gaming Regulation Bill, 2025, which is formerly known as the Promotion and Regulation of Online Gaming Bill, 2025. Which was cleared by the Union cabinet on August 19th, 2025.
But what are the key highlights of the bill?
- Ban on Online Money Games Involving Betting & Wagering
The bill strictly prohibits online money games that involve betting or wagering of money or anything of monetary value. This is a direct attempt to curb the rising problem of online gambling, which was seen as casual gaming. - Restrictions on Advertising & Financial Transactions
Advertisements that promote money-based gaming platforms will be restricted. Moreover, banks and financial institutions will be barred from processing any transactions linked to such games by stopping the financial pipeline of illegal platforms. - Strict Penalties & Enforcement
If anyone violates the law, it comes with heavy consequences: fines ranging from ₹50 lakh to ₹2 crore, imprisonment of up to three years, and even the potential shutdown of platforms if anyone is found guilty of running or promoting betting-related games. - Accountability for Celebrities & Influencers
The bill makes a bold move by holding celebrities and influencers accountable. Those endorsing or promoting illegal betting or gambling platforms can face severe penalties. This aims to reduce and control misleading promotions that often target players. - Recognition of E-Sports as a Legitimate Industry
For the first time, e-sports gets official recognition in Indian law. The bill distinguishes skill-based virtual competitions played under recognized rules and standards from gambling. This paves the way for e-sports to grow as a legitimate, regulated industry.
But we need to discuss two major things here: why the government took this action and how it is going to affect the startups and economy, and what the further consequences of it are. Online money-based games, especially those apps that conceive themselves as fantasy gaming, rummy, poker, etc., have been under fire due to the rising cases of gambling addiction, debt traps, and even suicides. But it didn’t stop here. A lot of these platforms operated in grey areas. There were cases of unregulated transactions, cross-border betting networks, and misuse of digital wallets for laundering money. Many users, particularly youth, were attracted into these platforms by misleading ads featuring celebrities/influencers. So, by seeing all of it, the government wants to cut down on exploitative marketing.
But what we need to understand is the government doesn’t want to kill or damage the innovation that’s taking place in the gaming sector. So, that is the reason why it carved out a space for e-sports and skill-based non-money games. Well, in the short term, this comes with a mixed impact. According to various reports available online, the Indian economy may get a hit of about INR 20,000 crores. This is all collected in the form of taxes. Now this impact is directly on the startups and people in that industry, and the butterfly effect hits the economy. Nearly 86% of the sector’s revenue comes from real-money formats like fantasy sports, poker, and rummy. These are now at risk, threatening the survival of dozens of startups and unicorns.
Some of the biggest names in the space, such as My11Circle (Games24x7), Zupee, Gameskraft’s RummyCulture, MPL, and Probo, have either shut down or are in the process of discontinuing their real-money gaming businesses in India. So far after the bill has passed, My11Circle (Games24x7), one of the country’s leading fantasy sports platforms, has internally announced its shutdown, citing the restrictions of the new bill that effectively bans real-money online games. MPL (Mobile Premier League), which is a gaming startup, has closed its real-money vertical in India, though it will continue overseas operations, which already account for nearly 50% of its revenues. “New deposits will no longer be accepted, but users can withdraw existing balances,” the company confirmed, while also shifting its focus to free-to-play gaming experiences in India. RummyCulture has completely discontinued its flagship rummy platform, and according to various sources, Dream11 is also planning to shut down its real-money gaming business. This will create a fear amongst the investors and shareholders to put more money into the sector. Well, this also leads to the loss of employment of over 2 lakh people.
But the biggest question that arises and we should think of is the rise of offline betting networks. It again gives a massive push to the offline clubs and betting gambles across the country. We need to wait and see how this decision impacts the sector and how it evolves in the future.
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