India passes bill to ban real money-based online games

BENGALURU, Aug 21 – India’s parliament on Thursday moved to ban online money-based games, which could wipe out the country’s $130 million (95.51 million pounds) mobile gaming industry, one of its growing tech sectors. The government, which is led by Prime Minister Narendra Modi, said the ban was necessary because of the high risks to financial harm and physical, psychological and social well-being that could be posed to younger players. The move has sent shock waves through the industry, which was expected to grow into a $3.6 billion market by 2029 and has drawn large validations from investors like Tiger Global and Peak XV Partners. Industry leaders warn of widespread job losses and the failure of app-based businesses that have lured billions of dollars in foreign funding.

The law bans “harmful” online gaming services for money, as well as related advertisements and financial transactions. “It is government and parliament’s responsibility to take strict action against such social evils as and when they keep surfacing time and again,” IT Minister Ashwini Vaishnaw told lawmakers.

The Promotion and Regulation of Online Gaming Bill, 2025 was approved by the upper house after being passed by the lower house earlier this week and now awaits the presidential assent — a mere formality. Gaming companies, meanwhile, are seeking legal opinion to move the SC to challenge the move, saying the industry was not consulted, people who have been earning livelihood out of it will be affected and skill-based games like poker are being unfairly targeted.

Fantasy sports apps, which have surged in popularity, are being aggressively promoted and sponsored by top cricket players and backed by huge advertising spends on platforms like Dream11 and Mobile Premier League (MPL). Valued at $8 billion, Dream11 lets users create virtual teams for as little as ₹29, while prize pools have top payouts of as much as ₹3 lakh. MPL is valued at $2.3 billion, and other platforms like Games24x7, Zupee and WinZO are equally popular. Under the new law, providing money-based games would be punishable by up to three years in jail, as well as hefty fines.