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Legislative bills

India Passes Bill Outlawing Real-Money Gaming Amid Growing Concerns Over Addiction and Security Risks

Strategic Insights

— 2 min read

India's Lok Sabha passed a Bill proposing a sweeping ban on real-money gaming, effectively outlawing all forms of real-money gaming in the country. The Promotion and Regulation of Online Gaming Bill, 2025, is aimed at addressing growing concerns over addiction-fuelled debt, financial ruin, and rising cases of suicide linked to real-money gaming. The government sees real-money gaming platforms as national security risks, alleging they have been used for fraud, money laundering, terror financing, and covert messaging.

Key Takeaways:

  • The Bill imposes a blanket ban on all forms of money-based gaming, including betting, gambling, fantasy sports, rummy, poker, and lotteries, unless exempted.
  • Violators could face up to two years in prison and fines of up to Rs 10 lakh.
  • A national gaming authority will oversee regulation and compliance.
  • The Bill distinguishes real-money gaming from e-sports or social gaming, with the Ministry of Youth Affairs promoting e-sports and the Ministry of Information and Broadcasting supporting the development of social/educational gaming.
  • The government has called for the establishment of gaming academies, research centers, and tech platforms to boost India's digital ecosystem.
  • Industry bodies, including All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of India Fantasy Sports (FIFS), have urged a review of the legislation, warning of 2 lakh job losses and a devastating impact on the sector, which is projected to reach $9 billion by 2029.

Statistics:

  • The online gaming sector in India is projected to reach $9 billion by 2029.
  • Over 400 startups in the online gaming sector are at risk of devastation.
  • The industry employs over 2 lakh people, including game developers, testers, support staff, and other backend personnel.
  • The real-money gaming industry is estimated to generate Rs 20,000 crore annually in taxes and attract over Rs 25,000+ crore in foreign direct investment (FDI).
  • The Bill could potentially decimate the sector, resulting in job losses, revenue decline, and reduction in innovation.

Sources:

  • "Lok Sabha passes Bill proposing blanket ban on real-money gaming" (Source: ETtech)
  • "Government proposes dedicated regulator for online gaming under new law" (Source: ETtech)
  • "Blanket ban on online real money gaming will kill jobs, revenue, innovation: minister Priyank Kharge" (Source: ETtech)
  • "Indian startups are turning to the public markets out of necessity, not preference, as late-stage private capital diminishes" (Source: ET Soonicorns Summit 2025)
  • "Karnataka Assembly passes gig workers' social security Bill" (Source: ETtech)
  • "Fresher hiring intent slips to 70% in H2" (Source: TeamLease EdTech)

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