India's government has passed the Promotion and Regulation of Online Gaming Bill, 2025, effectively banning real-money gaming platforms, a decision that threatens a $25 billion industry.
This sweeping legislation, cleared by the Lok Sabha on August 20, 2025, targets popular apps like Dream11, My11Circle, and RummyCircle, sparking widespread concern among industry stakeholders.
Devastating Impact on Jobs and Economy
Industry experts warn that this ban could jeopardize over 200,000 jobs and lead to a significant loss of tax revenue, estimated at $20,000 crore annually.
The online gaming sector, which has attracted $2.8 billion in foreign direct investment (FDI) over the past five years from global investors like Tiger Global and ChrysCapital, now faces an uncertain future.
A Booming Industry Under Threat
Once hailed as a cornerstone of India's digital economy, the real-money gaming sector has grown exponentially, contributing $3.5 billion in revenue annually before this regulatory crackdown.
Historically, the industry received a boost in 2023 when the IT Ministry introduced pro-industry rules, a stark contrast to the prohibitive stance of the 2025 bill.
Risk of Pushing Users to Illegal Platforms
Critics argue that the ban may drive users to unregulated offshore platforms, resulting in a potential $4 billion loss in GST revenue due to unchecked illegal gambling operations.
Opposition leaders and gaming executives have voiced concerns that such a policy could stifle innovation and startups, pushing talent and capital out of the country.
Government's Rationale and Public Welfare
The government defends the ban by citing the need to curb addiction and financial losses among the estimated 45 crore users who reportedly lose $20,000 crore yearly on these platforms.
While the bill promotes eSports and skill-based social gaming, it imposes strict penalties, including jail terms, for violators of the real-money gaming ban.
Looking ahead, the establishment of a central regulator to oversee the gaming industry signals a shift towards stricter oversight, though its impact on rebuilding investor confidence remains unclear.
As legal battles loom, the future of India's once-thriving gaming ecosystem hangs in balance, with stakeholders urging a balanced approach between regulation and growth.
Andrew Lee
