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Read Full BioIndia’s Union Cabinet has cleared the Promotion & Regulation of Online Gaming Bill, 2025, which proposes a blanket ban on real-money gaming. This would include a ban on fantasy sports, rummy, and any other games participants play for money.
The proposal will now move to Parliament, and if approved, would introduce several measures to clamp down on operators and promoters of gaming.
The text of the bill attempts a sweeping ban, stating it will “prohibit the offering, operation, facilitation, advertisement, promotion and participation in online money games through any computer resource.”
Currently, some states in India have banned online gaming, including fantasy sports, but there is no official federal law.
In addition to banning online gaming and advertisements promoting platforms, it would also bar banks and financial institutions from processing related transactions. Anyone offering such games could face up to three years in jail and fines.
Bill Promotes eSports & Casual Games
The bill was introduced by IT Minister Ashwini Vaishnaw, who stated that it aimed to mitigate the harm caused by online gaming while promoting educational games and eSports.
Vaishnaw stated: “The government wants to support eSports and casual games. We want to protect the interest of the society and this Bill protects society, and I request the house to pass this Bill unanimously.”
With over 400 million digital gamers in India and a thriving industry around real-money gaming and fantasy sports, the bill is likely to have a far-reaching impact.
US states have also been clamping down on fantasy sports, with California’s Attorney General declaring the games illegal gambling and warning operators of impending action.
‘Another Masterstroke’ in Bad Policy Making
The proposal has been heavily criticized. Minister Priyank Kharge commented that it was “another masterstroke by Modi Sarkar in bad policy making.”
Kharge cited the amount of money real-money gaming generates for India’s economy and the negative consequences a sweeping ban would have on the industry. He took to social media to post a detailed breakdown of the potential impact, including:
- Loss of tax on gaming revenue
- Loss of jobs
- Drive entrepreneurs offshore
- Withdrawal of global investors
- Collapse of business focused on data centers, sponsorships, and cybersecurity
- Push gamblers to offshore platforms
India’s online gaming market is currently valued at $3.7 billion and projected to more than double to $9.1 billion by 2029. Nearly 86% of today’s revenue comes from real-money formats.
Kharge also noted that India’s Supreme Court is still deliberating whether fantasy sports and other forms of online gaming should be allowed. He urged the government to pause any decision on the bill before the Supreme Court ruling.
India Proposes Tax Increase on Gaming Companies
In addition to sweeping bans against real-money gaming, India is also considering raising taxes on any forms of gaming that remain. A 40% “sin” tax has been proposed on alcohol, tobacco, and gaming companies, which are currently subject to a 28% tax rate.
A similar proposal to raise taxes on gambling in the UK has been met with strong opposition by the Betting and Gaming Council (BGC).
As a result of the proposals in India, gaming stocks declined by up to 4.5% for companies like Nazara Technologies and Delta Corp, as investors feared regulatory challenges and higher taxes.
