India’s lower house of parliament on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, a landmark piece of legislation that bans all real-money games across the country, regardless of whether they are based on skill or chance. The bill, passed by voice vote in less than seven minutes, now awaits approval from the upper house and the president before becoming law.
The law prohibits financial institutions from processing transactions related to real-money gaming and imposes strict penalties on operators and promoters. Violators could face up to three years in prison or fines as high as ₹10 million ($115,000), while celebrities endorsing such platforms could be fined ₹5 million ($57,000) or jailed for two years.
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India’s IT Minister Ashwini Vaishnaw defended the bill as a step to protect society, citing incidents of self-harm linked to gambling losses. However, industry groups argue the move unfairly targets regulated domestic platforms while leaving illegal offshore betting apps untouched. Critics also warn it may fail constitutional scrutiny under Article 19(1)(g), which guarantees the right to practice any profession or business.
Industry associations representing firms such as Dream Sports, MPL, WinZO, and Nazara Technologies have warned of widespread shutdowns, the loss of more than 200,000 jobs, and a blow to startups collectively valued at ₹2 trillion ($23 billion). Nazara Technologies’ stock fell nearly 13% following the announcement, reflecting investor concerns.
Some esports and casual gaming companies have cautiously welcomed the bill, saying it provides clarity for sectors not reliant on real-money play. Still, experts warn the lack of precise definitions for “esports” and “online gaming” could cause confusion for players, regulators, and investors alike.
The bill follows earlier moves by New Delhi, including a 28% tax on online gaming in 2023, which triggered pushback from industry and investors. With the new blanket ban, many fear India’s reputation as a predictable investment environment could be at risk.
