India has passed new legislation that prohibits online real money gaming while introducing a regulatory framework for e-sports and other forms of online gaming.
The Promotion and Regulation of Online Gaming Bill, 2025, cleared both houses of Parliament this week and will take effect once it receives presidential approval.
The law makes it illegal to offer, operate, or advertise real-money online games. Violators face imprisonment of up to three years and fines of up to ₹10 million ($115,000). Advertising such games carries a penalty of up to two years in prison and fines of up to ₹5 million ($57,000). Celebrities and influencers endorsing these products could also face similar penalties.
Union Minister Ashwini Vaishnaw, who introduced the legislation in the Rajya Sabha (upper house of the Parliament), said the measure was intended to regulate the sector in a way that promotes e-sports, educational games, and safe social gaming while prohibiting money-based gaming activities.
Regulatory structure for e-sports and social gaming
The law establishes a National e-Sports Authority to promote competitive gaming, issue compliance rules, and oversee standards for fair play. Online social games will need to be registered with a regulatory body that will maintain an official list of approved titles and issue guidelines on formats.
E-sports is formally recognized under the new framework as a legitimate competitive activity, with provisions for supporting skill-based digital games and educational content aligned with cultural and social objectives.
Economic and industry impact
India’s real-money gaming market has drawn significant investment in recent years. Companies such as Dream Sports and Mobile Premier League have together raised nearly $1.7 billion from global venture capital firms, including Tiger Global Management and Peak XV.
Dream Sports alone spent between ₹12 billion and ₹14 billion ($138 million–$161 million) on advertising last year, according to Madison World, making it one of India’s largest advertisers and the sponsor of the national cricket team’s jersey.
Industry observers said the law may affect investment flows. “The government of India’s proposal to prohibit online real-money games, rather than regulate them, will harm the domestic gaming industry and undermine investor confidence,” said Probir Roy Chowdhury, a partner at JSA Advocates & Solicitors. “Such a drastic shift signals to investors that the government can arbitrarily dismantle a thriving sector, creating significant regulatory risk.”
Concerns about migration to offshore platforms
The bill cites links between unregulated money gaming and unlawful activities such as financial fraud, tax evasion, money laundering, and, in some cases, financing of terrorism. Lawmakers said these activities pose risks to national security and public order.
Still, some policymakers and industry representatives have warned that the prohibition may push players toward offshore betting platforms. “Bans don’t stop addiction or suicides,” said Priyank Kharge, electronics minister for the state of Karnataka and a member of the opposition Indian National Congress. “Instead, they push users to unregulated offshore platforms.”
Growth potential and projected losses
A PwC report from last year estimated that India’s real-money gaming market could grow from ₹165 billion ($2 billion) in 2023 to ₹265 billion ($3 billion) by 2028. The new law would halt this trajectory for money-based gaming, while supporters argue it opens opportunities in other categories.
Government critics, however, estimate the ban could cost the treasury about ₹200 billion ($2.3 billion) annually in lost taxes and put more than 200,000 jobs at risk.
Over 155 million Indians engaged with real-money gaming in 2024, government data show. Lawmakers said the prohibition is aimed at protecting families and youth from compulsive behavior and financial losses tied to such games. At the same time, authorities intend for the new framework to foster employment and innovation in e-sports, social gaming, and educational content.
