The government has introduced the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha, which is being termed as the death knell for around 1,700 startups operating in the online money gaming or real-money gaming space (RMG), including those involving the use of skill. The bill bans anyone offering online money games and online money gaming services, which practically impacts all the big companies operating in the domain, including Dream 11, Mobile Premier League (MPL), WinZo, Zupee (Ludo), BaaziGames, My11Circle and many more.
The draft bill also bans real-money gaming ads, and even advertisers could face sanctions for allowing these ads. This directly impacts big players who splurge big money into advertisements during major events like the Indian Premier League (IPL). To make it even tougher for companies to facilitate transactions on their platforms, the new law bans banks and other financial institutions from allowing financial transactions on the platforms when it comes to real-money gaming. There’s also a provision for the formation of an authority that will oversee the companies operating in the domain; so far, the online gaming industry has had self-governing bodies. Companies will have to apply to ensure their legal status. The agency will also look into the industry’s issues and handle their complaints and grievances.
The companies operating in the RMG space or online money gaming service will be jailed for up to three years or fined up to Rs 1 crore. The new law also provides a penalty and jail term for putting RMG ads, and banks allowing financial transactions. The new law empowers authorities to conduct searches and arrests without warrants and makes these offences “non-bailable”.
What will happen to the future of RMG players?
The RMG sector is a huge revenue generator in the online gaming space, with around an 85% share in revenue in 2024 alone. In the next four years, it could hit $9 billion and unlock investment worth $63 billion, as per the data in WinZO Games’ report this year. India’s gaming industry is thriving, with around 591 million users or 20% of the world’s gamers, though it only contributes 1.1% of the global gaming revenue. The ban on RMG entities could wipe out these gains unless these companies come up with other alternatives to boost their revenues.
The blanket restrictions on certain real-money games may stifle segments of the gaming market that were previously generating significant revenue, particularly in mobile gaming and tournament-based platforms, says Ananay Jain, Partner, Grant Thornton Bharat. “Smaller start-ups and emerging developers may face compliance burdens and financial strain due to penalties and regulatory requirements. Additionally, the Bill could slow the pace of certain innovations in skill-based monetised platforms, as companies navigate a complex legal landscape.”
Companies like Dream 11, MPL, Games 24*7, Zupee, and WinZO have their entire business model around games where a user puts in a certain amount to play a certain game in the hope that if they win, they could hit a jackpot. Dream11 alone is India’s largest fantasy sports platform with 55% market share and 200 million users. Likewise, MPL commands around 15-20% share in fantasy sports, casual and board games.
These companies often flood social media and TV channels with ads claiming big wins, especially for people who are in the smaller strata of society. The government believes this encourages even those who are poor to participate in such games in the hope of a big win. These companies offer an array of online money games, including cricket, other sports, and casual games like rummy, poker, etc., where winning money is possible.
What do stakeholders say?
Calling it a death knell, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS), the three organisations together represent almost the entirety of the online skill-gaming industry in India, has called it a “death” blow to the sunrise industry, which provides around 2 lakh direct and indirect jobs.
“Banning RMG may also have an impact on people employed in the gaming sector. Gaming companies have been subject to a 28% GST levy in the past. But the bill indicates a move from regulating to banning, when it comes to RMG,” says Vikram Jeet Singh, Partner at BTG Advaya, a full-service law firm that operates from Mumbai, Delhi and Bengaluru.
Contrary to the government’s claims of harm being caused by RMG entities, these associations believe the bill, if passed, will cause serious damage to Indian users and citizens, as it will encourage more and more players into the hands of illegal “matka” networks, offshore gambling websites, and fly-by-night operators. These illegitimate entities neither operate with any safeguards nor do they pay any taxes to the government. The associations have said that instead of protecting people, the Bill risks exposing them to fraud, exploitation, and unsafe practices, and thus posing a threat to India’s national security.
The associations believe the bill, in its present form, only benefits the illegal offshore gambling operators. “If legitimate Indian businesses are shut down, unregulated actors will fill the vacuum. This will erode state and national tax revenues while leaving Indian users exposed to unregulated platforms,” the latter submitted by the gaming associations to Prime Minister Narendra Modi reads. They have also sought an opportunity to present their case and offer solutions that promote a safe gaming experience.
Rather than applying a blanket ban, the government’s approach should be “calibrated”, Anuraag Saxena, CEO, E-Gaming Federation, told Fortune India. This, he said, could deliver better results than complete restrictions, agreeing that the current law could “nudge users towards unregulated offshore platforms”. Calling the bill “extremely problematic”, Jay Sayta, one of the top technology & gaming lawyers, says that, prima facie, the draft bill seems “unconstitutional” and unsustainable. Explaining that “betting and gambling” as well as “amusements and entertainments” are squarely state subjects, Satya said: “Parliament has no legislative competence to enact laws on the subject; except under Article 252 of the Constitution where two or more state legislatures expressly pass a resolution and allow parliament to enact a law on the subject.”
The bill, for now, has been tabled in the Lower House. With the industry completely against the ban on RMG, it remains to be seen how much the government is willing to give in to their demands.
