Overview of the New Bill

In August 2025, India’s Parliament passed the Promotion and Regulation of Online Gaming Bill, imposing a nationwide ban on all real-money gaming (RMG) activities—including fantasy sports, poker, rummy, and betting apps—regardless of whether they are games of skill or chance. The bill mandates strict penalties for operators, promoters, and users, including fines up to ₹1 crore and imprisonment up to three years.

Government’s Rationale

The government, led by IT Minister Ashwini Vaishnaw, justified the ban by highlighting soaring concerns over money laundering, terror financing, addiction, and youth suicides linked to RMG platforms. Reports of operators evading taxes and regulatory oversight further fueled the decision, aiming to protect public safety and social order.

Impact on Industry and Markets

The ban has profoundly disrupted India’s thriving online gaming ecosystem, which employs over 200,000 people and contributes around ₹20,000 crore in annual GST revenue. Estimates predict losses of up to ₹52,272 crore in existing investments and sharply diminished future funding prospects.

Market reactions were immediate: Dream11, India’s dominant fantasy sports platform, must pivot away from real-money contests, fundamentally altering its business model. Nazara Technologies, India’s only gaming firm listed on stock exchanges and with indirect exposure via PokerBaazi, saw its shares fall 7% amid concerns over asset write-downs.

Broader Consequences and Challenges

Industry insiders warn that without transitional guidelines, the ban may drive players to offshore and unregulated platforms, undermining consumer protection and tax compliance. History shows that blanket prohibitions often shift risks into the shadows rather than eliminate them, echoing past experiences with cricket betting.

Conclusion

India’s new bill marks a pivotal moment, prioritizing social safeguards but raising tough questions about sustainable regulation. The challenge ahead lies in balancing effective risk management with transparency—ensuring consumer protection without pushing participants into unregulated, riskier spaces.