How the Online Gaming Bill 2025 Will Affect Indian Gaming Apps

Impact of Online Gaming Bill 2025 on Indian Apps

A Defining Moment for Indian Online Gaming

India’s gaming industry has grown at an unprecedented pace in the last decade, riding on the surge of mobile internet, affordable smartphones, and increasing youth participation. With more than 450 million gamers, India is among the world’s largest online gaming markets. However, this rapid growth has also brought with it serious concerns around real-money games, online betting, and their impact on society.

On August 20, 2025, the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025, within just seven minutes of its introduction by IT Minister Ashwini Vaishnaw. The Bill, which now awaits Rajya Sabha approval, is being seen as one of the most decisive and strict measures against money-based gaming platforms in India.

While the Bill promotes e-sports and casual games, it imposes a blanket ban on real-money games, bringing harsh punishments for violators. This move has triggered debates across industry circles, legal experts, and millions of gamers in India.

Why the Government Introduced the Online Gaming Bill 2025

Ashwini Vaishnaw highlighted several reasons behind the introduction of this legislation:

1. Addiction and Social Harm: Lakhs of individuals, especially youth, have reportedly lost their life savings to real-money games, resulting in debt, family conflicts, and even suicides.

2. Financial Fraud: Several online platforms have been accused of money laundering, tax evasion, and cross-border illegal transactions.

3. National Security Risks: Intelligence agencies flagged that some offshore-based gaming companies were being misused for terror financing and secret communications.

4. Legal Confusion: Different states had passed different laws around online betting and gambling, creating a patchwork of regulations and frequent court battles.

5. Economic Transparency: Offshore platforms avoided paying Indian taxes while domestic startups faced compliance burdens.

According to Vaishnaw, the Bill aims to curb harmful practices while nurturing safe and skill-based digital gaming ecosystems.

Also Read: PM Viksit Bharat Rozgar Yojna 2025: Step-by-Step Guide to Apply, Benefits & Eligibility

Scope of the Online Gaming Bill 2025: What It Covers

The Promotion and Regulation of Online Gaming Bill, 2025 clearly defines what types of online games will be allowed and which ones will be prohibited. The Bill classifies online gaming into three distinct categories:

1. E-Sports: The Promoted Segment

Definition and Nature

E-Sports are competitive digital games where players or teams compete using skills, strategy, and teamwork. Unlike gambling or chance-based platforms, e-sports are recognized globally as skill-based competitions.

Government’s Stand

• The Bill encourages e-sports as a legitimate part of India’s growing digital economy.

• Seen as a way to boost innovation, digital literacy, and career opportunities.

• Promoted under Digital India and youth empowerment initiatives.

Examples of E-Sports

• Multiplayer Online Battle Arena (MOBA) games like DOTA 2 or League of Legends.

• First-person shooter (FPS) tournaments like Counter-Strike or Valorant.

• FIFA and cricket-based e-sport championships.

Benefits

• Creates opportunities for professional players, streamers, and event organizers.

• Encourages team-building, problem-solving, and strategic thinking.

• Can place India on the global map of competitive gaming.

2. Casual Social Games: Harmless Entertainment

Definition and Nature

Casual or social games are non-money digital games meant for entertainment, relaxation, and social interaction. These games have no monetary stakes and are considered harmless.

Government’s Stand

• The Bill keeps casual games outside the ambit of regulation, ensuring people can continue enjoying them without restrictions.

• Seen as an important category to foster safe online engagement.

Examples of Casual Social Games

• Traditional board games like chess, ludo, sudoku, and solitaire.

• Popular mobile-based casual games like Candy Crush or Angry Birds.

• Simple multiplayer games played among friends on mobile or web apps.

Benefits

• Provides stress relief and leisure for players across all age groups.

• Encourages social bonding as families and friends can play together.

• No risk of financial loss, making them safe for children and senior citizens.

3. Real-Money Games (RMGs): Completely Banned

Definition and Nature

Real-money games involve players staking money to win monetary rewards. These platforms often blur the line between skill and chance, making them addictive and risky.

Government’s Stand

• The Bill completely bans real-money gaming in India, citing addiction, financial losses, and misuse by fraudulent operators.

• Classified under gambling and betting, which are not legally permissible at the federal level.

Examples of RMGs

• Fantasy Sports Platforms: Dream11, My11Circle, MPL.

• Card Games: Online Rummy, Poker, Teen Patti.

• Other RMG Platforms: Online lotteries, betting sites, and casino apps.

Concerns and Risks

• Addiction leading to financial ruin and mental health issues.

• Used for money laundering, tax evasion, and terror financing.

• Cross-border operators evade Indian law, creating enforcement challenges.

Summary of Categories Online Games

Key Provisions of the Online Gaming Bill 2025

Ban on Real-Money Gaming

• Any platform offering online money gaming will be declared illegal.

• Companies, promoters, and facilitators will face direct penalties.

Prohibition of Advertisements

• No online, print, or TV advertisements will be allowed for banned games.

• Influencers and celebrities endorsing such games will face legal action.

Restrictions on Transactions

• Banks, UPI platforms, and NBFCs are barred from processing payments related to money-based games.

• The Financial Intelligence Unit (FIU) will monitor suspicious transactions.

Corporate Liability

• Both companies and their directors/managers can be punished.

• Independent directors uninvolved in daily operations will not be held liable.

Cognisable & Non-Bailable Offences

• Offences under Sections 5 and 7 are non-bailable, giving police power to arrest without prior approval.

Penalty For Offering Online Money Gaming

1. Offering Online Money Gaming

• Jail: Up to 3 years

• Fine: Up to ₹1 crore

• Or both

2. Misleading Advertisements

• Jail: Up to 2 years

• Fine: Up to ₹50 lakh

• Or both

3. Unauthorized Transactions

• Jail: Up to 3 years

• Fine: Up to ₹1 crore

• Or both

4. Repeat Offenders

• Minimum jail term: 3 years, extendable to 5 years

• Fine: Between ₹1 crore and ₹2 crore

5. Non-Compliance with Government Orders

• Penalty: Up to ₹10 lakh

• Possible suspension or cancellation of registration

Indian Apps Likely to Be Impacted by Online Gaming Bill 2025

The Bill is expected to hit India’s $3.6 billion real-money gaming industry (projected for 2029). Popular apps and companies likely to be directly affected include:

• Dream11 – Fantasy sports giant valued at $8 billion.

• Mobile Premier League (MPL) – Valued at $2.5 billion.

• Other platforms:

  • My11Circle

  • Howzat

  • SG11 Fantasy

  • WinZO

  • Games24x7 (My11Circle, RummyCircle)

  • Junglee Games (Poker, Rummy)

  • PokerBaazi

  • GamesKraft (RummyCulture)

  • Nazara Technologies (investor in PokerBaazi)

Following the Bill’s introduction, Nazara Technologies’ shares fell by 13%. Casino operator Delta Corp also saw initial losses before recovering slightly.

Economic Impact of the Ban

Revenue and Jobs

• The industry generates ₹31,000 crore annually, with over ₹25,000 crore in foreign investments since 2022.

• Over 200,000 direct and indirect jobs depend on this sector.

Government Revenue

• The sector contributes ₹20,000 crore in taxes annually.

• A blanket ban may reduce taxable revenues while driving users to unregulated offshore apps.

Startups and Investors

• Around 400 startups in the RMG space could face closure or pivoting.

• Valuations of major unicorns like Dream11 and MPL may face significant corrections.

Industry Reactions and Criticism

Concerns Raised by Industry Bodies

• All India Gaming Federation (AIGF), E-Gaming Federation, and Federation of Indian Fantasy Sports have called the ban a “death knell” for the industry.

• They argue the government should regulate instead of ban, especially for skill-based games like fantasy cricket.

Experts’ Views

• Megha Bal, Director at Esya Centre, said the IT Rules 2023 amendments already offered a balanced approach with self-regulation and consumer protection.

• She criticized the government for “wiping out companies willing to comply” while benefiting offshore operators.

Player and Family Concerns

• While many gamers enjoy fantasy sports, families of addicted players welcomed the move, citing savings losses and financial ruin caused by such platforms.

Global Comparison

India’s approach is among the strictest globally. While countries like the UK and the US regulate online betting with licensing and safeguards, India has opted for a complete prohibition on money-based digital games.

This could:

• Protect vulnerable players

• Reduce chances of illegal transactions

• But also discourage international investors who prefer predictable regulations over outright bans

What Lies Ahead: The Future of Online Gaming in India

Short-Term

• Industry disruption as major startups either shut down or pivot towards casual/social gaming.

• Stock market corrections for gaming-linked companies.

Medium-Term

• Possible rise of illegal offshore platforms, leading to consumer risks.

• Government may need to revisit the law and introduce skill-based exceptions.

Long-Term

• A clearer framework may emerge, distinguishing e-sports and skill-based games from gambling.

• Companies could adapt by focusing on ad-driven casual games, AR/VR experiences, and e-sports tournaments.

Conclusion: Balancing Protection and Growth

The Online Gaming Bill 2025 is a landmark legislation that could reshape India’s gaming ecosystem. On one side, it protects millions of Indians from addiction, fraud, and financial ruin. On the other, it risks derailing a multi-billion-dollar startup-driven sector, potentially pushing users toward unsafe offshore alternatives.

The challenge for policymakers will be to ensure responsible regulation without stifling innovation. If implemented thoughtfully, India could create a safe, transparent, and globally competitive gaming industry.