India’s lower house of parliament has passed a new online gaming bill that promotes esports and casual gaming without monetary stakes but imposes a total ban on real-money games. The move threatens billions of dollars in investment and could lead to widespread shutdowns in the real-money gaming sector.
The legislation, titled the Promotion and Regulation of Online Gaming Bill, 2025, prohibits all real-money games nationwide, whether based on skill or chance, and bans related advertisements and financial transactions. India’s IT minister Ashwini Vaishnaw said in Parliament, “In this bill, priority has been given to the welfare of society and to avoid a big evil that is creeping into society.”
The bill also restricts banks and financial institutions from processing transactions for these games. Operators could face up to three years in prison, fines of up to ₹10 million, or both. Celebrities promoting real-money games could face up to two years in prison or fines of ₹5 million.
Industry bodies warned that the ban could benefit illegal offshore gambling platforms while harming legitimate Indian companies. The Federation of Indian Fantasy Sports, All India Gaming Federation, and E-Gaming Federation stated that shutting down regulated platforms could push millions of players toward unregulated offshore websites and illegal local operations.
Real-money gaming startups in India have a combined valuation of around $23 billion, generate roughly $3.6 billion in revenue, and contribute $2.29 billion annually in taxes. The industry groups warned that the ban could result in the loss of over 200,000 jobs and force more than 400 companies to close.
Publicly listed Nazara Technologies saw its share price drop 12.84 percent after the bill passed, though the company clarified it has no direct exposure to real-money gaming. Top startups like Dream Sports, MPL, and WinZO declined to comment.
The bill passed in a voice vote in the lower house in less than seven minutes and now requires approval from the upper house and the president.
Casual gaming and esports companies have welcomed the decision. Sumit Batheja, CEO of Ginger Games, said, “We applaud this decision as it allows us to focus on the ongoing concerns as a business — monetization, retention, and most importantly, building great IP for India and the world.”
Experts warn the bill could create ambiguity between esports, casual gaming, and real-money gaming, with wider consequences for the gaming and AVGC sector.
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