"Monetized online games under scrutiny: Indian government contemplates a ban on such games"
The Indian Parliament has passed the Promotion and Regulation of Online Gaming Bill 2025, marking a significant shift in the country's digital gaming regulation. The Act, which received presidential assent on August 22, 2025, aims to promote e-sports and social gaming while banning online games played with money stakes [1][2][5].
The new law prohibits all online games where users pay fees or stakes for a chance to win monetary rewards, regardless of whether they are based on skill or chance. This includes popular online games such as fantasy sports, real-money poker, rummy, betting, and gambling [1][2][3][4]. The ban extends to all platforms accessible in India, including international operators with India-facing services, creating an extraterritorial effect [1].
The law defines three categories of games: e-sports, online social games, and online money games. E-sports are organized, competitive multiplayer games under the National Sports Governance Act, without betting or wagering. Online social games are entertainment or educational games with no monetary stakes; subscription fees are allowed but cannot function as stakes. Online money games, which are banned, are games played with real monetary stakes aiming at monetary or material enrichment [1].
The Act includes strong provisions against the promotion, sponsorship, and advertising of money-staked online games. Violations can lead to imprisonment up to 3 years and fines up to ₹1 crore, with harsher penalties for repeat offenders [3]. The government's rationale for the ban is to address issues of addiction, financial harm, fraud, scams, and social distress linked to online money gaming [1][2][3].
The passing of this bill will impact major platforms offering real-money games, such as Dream11, Games24x7, Winzo, and Mobile Premier League, which must cease operations in India [2][3][4]. Dream11, a popular fantasy cricket game operated by a startup, commands a valuation of $8 billion [6]. Mobile Premier League, another real money gaming app, is valued at $2.5 billion, according to PitchBook data [7].
The bill, if passed, would be a heavy blow for the online gaming industry that has attracted billions of dollars of foreign investment. The Indian market for online gaming is expected to be worth $3.6 billion by 2029, according to venture capital firm Lumikai [8]. Endorsements by top Indian cricketers and marketing efforts have boosted the appeal and investor interest of real money gaming apps [9].
The bill, which has not yet been made public, has been reviewed by Reuters. The IT ministry, which drafted the bill, did not immediately respond to a request for comment [10]. The bill describes online money games as those played by a user by depositing money in expectation of winning monetary and other enrichment [1][2].
The enforcement of the Act is yet to be notified, leaving the industry in limbo. However, the bill marks a clear intention by the Indian government to regulate the online gaming sector, balancing consumer protection with industry promotion, but with stringent restrictions on real-money gaming.
References: 1. The Hindu 2. Livemint 3. The Economic Times 4. Indian Express 5. The Print 6. TechCrunch 7. PitchBook 8. Lumikai 9. Mint 10. Reuters
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