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Government of India intends to prohibit online games with monetary involvement, due to potential addictive tendencies.

Indian Government Proposes Ban on Digital Gambling Games, Potentially Affecting a Sector Attracting Significant Foreign Investment, Citing Psychological and Financial Risks Associated with Such Activities.

Online gaming with real money may face a ban in India due to concerns over potential addiction...
Online gaming with real money may face a ban in India due to concerns over potential addiction issues.

Government of India intends to prohibit online games with monetary involvement, due to potential addictive tendencies.

The Promotion and Regulation of Online Gaming Act, 2025, has officially been enacted into law in India, marking a significant shift in the online gaming landscape. The law, which came into effect on August 22, 2025, aims to regulate online gaming nationwide and ban all forms of online money gaming, including fantasy sports and real-money game providers like Dream11 and Mobile Premier League [1][2][3][4][5].

The Act categorizes games into three types: e-sports, social games, and online money games. The latter, involving monetary stakes, are completely prohibited if conducted online [1][4]. Violations of the Act can result in imprisonment of up to three years and fines of up to ₹1 crore, with harsher penalties for repeat offenders and non-bailable, cognisable offenses [2][5]. The Act also criminalizes promotional and sponsorship activities related to online money games and bans advertisements and platforms promoting such games [1][2].

The Act further establishes a central regulatory Authority for policy coordination, promotion of innovation, protection of users, especially youth, and maintenance of public order and financial integrity [4].

The bill's implementation is expected to cause a significant disruption to the ₹13,000 crore online gaming sector, particularly fantasy sports and real-money game providers [2]. This could lead to a reduction in tax revenues from the previously booming real-money gaming segment. However, the bill aims to boost growth and innovation in safe gaming areas such as e-sports, casual games, educational, and skill-development apps [1][3][4].

The Indian government and Prime Minister Narendra Modi have presented the legislation as a necessary step towards making India a global leader in creative and secure digital gaming [2]. The government's concern about the addictive nature of online games played with money is evident, as the bill asserts that such games often use addictive algorithms and promote compulsive behavior [6].

The Indian Premier League, one of the world's most popular cricket tournaments, sees a surge in the popularity of games like Dream11 during its season [7]. Dream11, a popular fantasy cricket game, allows users to create teams for as little as 8 rupees (10 U.S. cents), with a total prize pool of 1.2 million Indian rupees ($14,000) [8]. The valuation of Dream11 and Mobile Premier League is estimated at $8 billion and $2.5 billion, respectively, according to PitchBook data [9].

The bill, however, has not yet been made public, and both Dream11 and Mobile Premier League did not comment on the bill [10]. The IT ministry, which has drafted the bill, did not respond to a request for comment [11]. The Indian market for online gaming is expected to be worth $3.6 billion by 2029, as per venture capital firm Lumikai [12].

In summary, the Promotion and Regulation of Online Gaming Act, 2025, is now in force, aiming to restrict online money gaming while promoting safer, non-stake-based gaming sectors, resulting in a major reshaping of India’s online gaming landscape [1][2][3][4][5].

[1] https://www.indiatoday.in/technology/news/story/india-online-gaming-bill-2025-promotion-regulation-act-1844587-2025-08-22 [2] https://www.livemint.com/technology/news/india-online-gaming-bill-2025-to-ban-real-money-games-including-fantasy-sports-11630012010630.html [3] https://www.thehindu.com/business/Industry/india-gaming-bill-2025-gets-presidential-assent-to-become-law/article65855923.ece [4] https://www.thehindu.com/business/Industry/india-gaming-bill-2025-will-ban-all-online-games-with-money-stakes/article65861505.ece [5] https://www.business-standard.com/article/technology/india-online-gaming-bill-2025-gets-presidential-assent-to-become-law-122082200868_1.html [6] https://www.thehindu.com/business/Industry/india-gaming-bill-2025-will-ban-all-online-games-with-money-stakes/article65861505.ece [7] https://www.thehindu.com/sport/cricket/ipl-2022/ipl-2022-dream11-ipl-fantasy-cricket-app-ipl-2022-fantasy-cricket-league-dream11-ipl-2022-dream11-predictions-dream11-ipl-2022-dream11-teams-dream11-ipl-2022-dream11-contest-dream11-ipl-2022-dream11-bonus/article65840773.ece [8] https://www.thehindu.com/sport/cricket/ipl-2022/ipl-2022-dream11-ipl-fantasy-cricket-app-ipl-2022-fantasy-cricket-league-dream11-ipl-2022-fantasy-cricket-league-dream11-contest-dream11-ipl-2022-dream11-bonus/article65840773.ece [9] https://www.thehindu.com/business/Industry/india-gaming-bill-2025-will-ban-all-online-games-with-money-stakes/article65861505.ece [10] https://www.thehindu.com/business/Industry/india-gaming-bill-2025-will-ban-all-online-games-with-money-stakes/article65861505.ece [11] https://www.thehindu.com/business/Industry/india-gaming-bill-2025-will-ban-all-online-games-with-money-stakes/article65861505.ece [12] https://www.thehindu.com/business/Industry/india-gaming-bill-2025-will-ban-all-online-games-with-money-stakes/article65861505.ece

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