The Indian government has officially passed the Promotion and Regulation of Online Gaming Bill, 2025, proposing a blanket ban on real-money games (RMG) across the country. Piloted by IT Minister Ashwini Vaishnaw, the legislation marks a historic shift in India’s booming online gaming sector.
Key Highlights of the Bill
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Ban on Real-Money Games (RMG):
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Applies to fantasy sports, rummy, poker, opinion trading, and all other online games involving monetary stakes.
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Skill vs Chance Debate Closed:
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All money games will be treated as illegal, regardless of whether they are skill-based or chance-based.
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Global Reach:
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Extends to offshore platforms accessible in India.
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Allows government to act against foreign operators.
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Payment Restrictions:
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Banks, NBFCs, UPI, wallets, and payment gateways barred from processing deposits or withdrawals.
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Advertising Ban:
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Celebrities and influencers prohibited from endorsing or promoting money-based games.
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What’s Allowed Under the Bill?
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E-sports
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Recognised as competitive sports.
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Only entry fees allowed.
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Social Games
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Allowed if they don’t involve winnings.
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Developers may charge subscription or access fees.
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Enforcement and Penalties
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Cognizable & Non-Bailable Offences:
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Police can arrest without warrant and conduct raids.
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Penalties for Operators:
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Up to 3 years’ imprisonment and ₹1 crore fine for offering money games.
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Advertising Violations:
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2 years’ jail and ₹50 lakh fine.
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Payment Facilitation:
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Same penalty as offering games.
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Repeat Offences:
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3–5 years in prison and fines between ₹1–2 crore.
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Corporate Liability:
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Promoters, directors, managers, and executives personally accountable unless they prove lack of knowledge or due diligence.
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A New Regulator for Online Gaming
The Bill proposes setting up an Authority on Online Gaming with powers to:
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Register platforms and categorise games.
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Issue compliance codes.
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Handle disputes between stakeholders.
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Decide whether a game qualifies as e-sports, social, or money-based.
Funding requirement for regulator:
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₹50 crore setup cost.
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₹20 crore annually for operations.
Impact on Startups and Investors
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Market Size Shrinkage:
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RMG accounted for 85% of India’s gaming revenues in FY24 ($3.2B out of $3.7B).
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Market projected at $9.1B by FY29 faces a slowdown.
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Startup Survival Risks:
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Platforms like Dream11, MPL, Probo, Games24x7 face existential threats.
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Job Losses:
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Between 2–3 lakh jobs at risk (PwC estimates).
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Investor Concerns:
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Billions of dollars invested in RMG startups could erode in value.
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Government’s Stand
The ban aims to curb:
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Addiction and financial distress among youth.
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Fraud, scams, and illegal betting.
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Terror-funding risks through unregulated money flows.
What Lies Ahead?
With the Bill now passed, the future of real-money gaming in India looks bleak. Startups and investors must explore:
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E-sports opportunities.
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Casual/social gaming models.
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Subscription-driven platforms for monetisation.
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