India’s $3.8 Billion Online Gaming Industry Faces Big Shake-Up
The Rajya Sabha on Thursday passed the Promotion and Regulation of Online Gaming Bill, 2025, effectively banning money-based fantasy apps, poker, rummy and other real-money games. The move is seen as a huge blow to India’s fast-growing $3.8 billion online gaming industry, home to popular platforms like Dream11, MPL, My11Circle, and RummyCircle.
The bill, which had cleared the Lok Sabha a day earlier, prohibits all “harmful” real-money gaming services along with related advertising and financial transactions. The government cited risks of addiction, psychological distress, and financial losses as the primary reasons behind the ban.
Which Apps Could Be Impacted?
While the law does not name specific platforms, several major Indian gaming companies are expected to be affected:
- Dream11 – Valued at $8 billion, it is India’s biggest fantasy sports platform. Players pay as little as ₹8 to join contests, with prize pools reaching up to ₹14,000. Its popularity peaks during the IPL season.
- Mobile Premier League (MPL) – Backed by global investors, MPL is valued at $2.5 billion.
- Games24x7 – Parent company of My11Circle and RummyCircle.
- Other affected apps – Howzat, SG11 Fantasy, WinZO, Junglee Games (Poker & Rummy), PokerBaazi, GamesKraft (RummyCulture), and even listed firm Nazara Technologies, which has stakes in PokerBaazi.
Bloomberg reported that both Dream11 and MPL declined to comment on the bill’s passage.
Why Did the Government Ban Real-Money Gaming?
Union IT Minister Ashwini Vaishnaw said online money games had become a serious public health issue, causing financial and psychological harm.
“Our endeavour is to promote eSports and online social gaming. We want India to become a global game-making hub,” Vaishnaw told PTI.
According to him, India’s online gaming sector has three main segments:
- eSports – Skill-based competitions that will continue to be encouraged.
- Social gaming – Free-to-play or casual games, also set to receive legal recognition.
- Money gaming – Games involving cash deposits and winnings, now declared harmful and banned.
Officials said the government prioritized people’s welfare over revenue, even though the ban could affect tax collections from the booming industry.
What Are the Penalties Under the Online Gaming Bill?
The new law comes with strict penalties for companies, promoters, and even advertisers of real-money gaming apps:
- Operating or facilitating money gaming – Up to 3 years’ imprisonment and/or a fine of ₹1 crore.
- Advertising such games – Up to 2 years in jail and/or a fine of ₹50 lakh.
- Financial institutions enabling transactions – Up to 3 years’ imprisonment and/or a fine of ₹1 crore.
- Repeat offences – Jail term of 3–5 years and fines up to ₹2 crore.
Most of these offences are cognizable and non-bailable, signaling the government’s tough stance against money-based online games.
What’s Next for India’s Online Gaming Sector?
The passage of the Online Gaming Bill 2025 marks the biggest regulatory shift in India’s digital entertainment sector in recent years. While fantasy sports giants like Dream11 and MPL face an uncertain future, eSports and casual gaming could see a major boost, with government support to turn India into a global hub for game development.
