India Passes Online Gaming Ban Bill, Industry Faces Uncertain Future

India’s parliament has approved sweeping legislation that bans online games involving monetary stakes, a move that could cripple one of the country’s fastest-growing digital industries.

The Promotion and Regulation of Online Gaming Bill 2025, passed by both houses of parliament this week, prohibits money-based gaming apps, related advertising, and all associated financial transactions. The bill now awaits presidential assent—a formality in India’s legislative process—before becoming law.

The sudden passage of the bill has sent shockwaves through India’s online gaming sector, which was projected to reach a $3.6 billion valuation by 2029. Backed by major venture capital firms including Tiger Global and Peak XV Partners, the industry has attracted billions in foreign investment and supported thousands of jobs.

Executives warn that the ban could trigger immediate app shutdowns and job losses, undermining years of growth in the fantasy sports and skill-gaming segments.

Presenting the bill, IT Minister Ashwini Vaishnaw framed the legislation as a moral obligation:

“It is the duty of the government and parliament to take strict action against social evils, which keep erupting time and again.”

Officials argue that money-based games carry a high risk of financial harm and can cause psychological damage, especially among younger users.

Despite parliamentary approval, the industry may not go quietly. Several leading Indian gaming companies are exploring legal options to challenge the ban in the Supreme Court, sources told local media.

Their argument centers on two key issues:

• Lack of stakeholder consultation before passing the bill.
• The blanket ban including skill-based games like poker and rummy, which operators argue should be treated differently from games of chance.

The ban threatens household names in India’s gaming ecosystem:

• Dream11, valued at $8 billion, dominates the fantasy cricket market with millions of active users.
• Mobile Premier League (MPL), with a valuation of $2.3 billion, offers a wide mix of fantasy sports and casual skill games.
• Other platforms such as Games24x7, Zupee, and WinZO also face shutdown if the law is enacted.

On Thursday, Dream11’s app still allowed users to enter contests for as little as ₹29 ($0.33), with prize pools reaching up to ₹300,000 ($3,438).

Once enacted, offering or promoting money-based games could result in up to three years in prison and financial penalties. Industry leaders caution that enforcement of such provisions would effectively wipe out India’s regulated real-money gaming ecosystem.

With the president’s signature expected soon, the countdown has begun for India’s gaming platforms. While some companies prepare to shutter operations, others hope for judicial relief or possible exemptions for skill-based formats.

For now, uncertainty dominates what was once one of India’s most dynamic digital markets.