The passage of India's Online Gaming Bill 2025 has sent shockwaves through the gaming industry, with major platforms already shutting down operations and industry leaders warning of devastating economic consequences as the government implements a blanket ban on real-money gaming.
Probir Roy Chowdhury, Partner at JSA Advocates & Solicitors, said the move “will harm the domestic gaming industry and undermine investor confidence.” He noted that several Indian court rulings have upheld the legality of skill-based games and stressed that prohibition would push players towards offshore and unregulated platforms. “This represents a sharp policy reversal, abandoning earlier plans for self-regulation under the 2021 IT Intermediary Rules. It signals to investors that the Government can arbitrarily dismantle a thriving sector,” he added.
Parth Chadha, CEO and Co-founder of STAN, called the government’s decision to distinguish between esports, social gaming, and real-money gaming 'historic.' He said, “The true potential lies in the competitive esports ecosystem and social gaming communities. That said, it’s a tough day for our friends in the RMG industry. Many have built incredible businesses against the odds, created jobs, and brought gaming to millions. Their contributions shouldn't be overlooked.”
Meanwhile, Anurag Dhandhi, Business Head at Probo, highlighted the implications for opinion trading platforms. "Globally, prediction markets are seen as tools for economic insight and forecasting, regulated as financial markets. In India, they have been categorised as games. We urge the government to explicitly recognise opinion trading as a permissible skill-based activity and adopt a differentiated regulatory approach instead of a blanket prohibition," he said. Dhandhi warned that failing to do so could stifle a nascent but globally thriving sector.
The stakes are high. Over 400 companies, nearly two lakh jobs, and billions of dollars in investments hang in the balance. Markets have already reacted, with shares of listed gaming firms sliding after the announcement. Dream11, India's largest fantasy sports platform, is reportedly preparing for mass layoffs after an internal communication confirmed plans to shut down its RMG vertical.
The industry now faces a period of unprecedented transformation as companies scramble to pivot business models or explore legal challenges to the sweeping prohibition.
Key Provisions of the Online Gaming Bill 2025
All real-money games nationwide have been banned, whether based on skill or chance, including fantasy sports, online rummy, poker, and betting platforms. Here's a list of all the big apps that have been affected.
Other things that have been banned include advertisement and financial transactions related to real-money gaming. Banks and financial institutions are prohibited from facilitating transactions to RMGs as well.
Penalties include imprisonment up to three years and fine up to Rs. 1 crore for violations, 3 to 5 years imprisonment and fines up to Rs. 2 crore.
Government argues such games lead to serious issues, including addictions and financial losses, which in extreme cases have resulted in suicides among youth.
