Real Money Gaming Ecosystem Stares At Oblivion As Govt Mulls Total Ban

The homegrown real money online gaming ecosystem is staring at a potential wipeout as the government is planning to introduce a Bill to ban online games involving money.

The Union cabinet approved the online gaming bill earlier today.

Sources told Inc42 that the draft norms plan to prohibit all real money games, irrespective of whether they are games of chance or skill or both. The only exception granted has been for esports competitions. 

The proposed rules also ban all advertisements, or production thereof, involving money-based online gaming platforms. Not just this, the draft rules also bar banks, financial institutions and “individuals” from facilitating any transactions related to online money-based gaming platforms.

Called the “Promotion & Regulation of Online Gaming Bill 2025”, the Bill proposes setting up of a dedicated agency to “recognise, categorise and register online games”. The sources said that the new authority would be tasked with addressing complaints related to online gaming platforms. 

The draft rules also underline strict punishments for flouting the said norms. Operating a money-based online gaming platform could attract a jail term of up to three years or a fine of INR 1 Cr or both. 

Advertising a real money gaming platform could invite imprisonment for a term of two years or a fine of INR 50 Lakh, or both. Any entity or person processing transactions for money-based gaming apps will be liable to pay a fine of up to INR 1 Cr and an imprisonment of up to three years, or both. 

Recurring violations will entail stricter provisions. 

Industry Seeks HM’s Intervention 

Amid indications that the government would table the contentious Bill in the Parliament, industry bodies wrote a letter to home minister Amit Shah and sought his intervention to stall the proposed norms. 

As per Economic Times, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and Federation of Indian Fantasy Sports (FIFS), in a joint representation, said that the blanket ban on real-money gaming could “cripple” the sector and drive millions of users to offshore gambling platforms. 

The industry bodies also said that the draft norms would cost the government a steep INR 20,000 Cr in annual taxes and “strike a death knell” to the industry. 

Making their case, they said that the proposed norms would have a direct bearing on the homegrown online gaming ecosystem, which employs 2 Lakh individuals and has brought INR 25,000 Cr in foreign direct investment (FDI) to Indian shores. 

“The only beneficiary of this bill will be illegal offshore gambling operators… By shutting down regulated and responsible Indian platforms, crores of users will be driven to unregulated matka networks and offshore betting websites without safeguards, consumer protections or taxation,” the letter reportedly added.

The AIGF, EGF and FIFS represent some of the biggest online gaming platforms in the country, including Dream11, Games 24×7, Mobile Premier League, among others. 

Not stopping there, the industry bodies also claimed that the proposed Bill risks “exposing” the general public to fraud, exploitation and unsafe practices.