In a groundbreaking move, the Indian government has announced plans to introduce a blanket ban on real-money gaming, encompassing both skill-based and chance-based games, as part of its proposed online gaming regulation.
This decision, reported by TechCrunch on August 19, 2025, signals a significant shift in policy that could reshape the landscape of the $9 billion online gaming industry in India.
Historical Context of Online Gaming in India
The online gaming sector in India has seen exponential growth over the past decade, fueled by widespread smartphone adoption and affordable internet access.
Platforms like Dream11 and Games24x7 have become household names, with the real-money gaming segment alone valued at over ₹1,60,000 crore, according to industry estimates shared on social media platforms.
Policy Evolution and Industry Challenges
However, this growth has been accompanied by regulatory scrutiny, with previous measures like the 28% GST imposition in 2023 already impacting industry revenues by nearly 30%, as noted in online discussions.
The government’s earlier attempts to classify real-money gaming under anti-money laundering laws and issue tax evasion notices worth ₹1.5 lakh crore to companies further highlighted its concerns over addiction and financial risks.
Impact of the Proposed Ban
The proposed Regulation & Promotion of Online Gaming Act will prohibit banks and financial institutions from processing transactions related to real-money games, effectively halting operations for many platforms.
Industry stakeholders warn that this could jeopardize 2 lakh jobs and risk ₹20,000 crore in GST revenue, while potentially driving users to unregulated offshore platforms, as reported by BusinessToday.
Future of Gaming and E-Sports in India
While the ban targets real-money gaming, the draft bill also aims to legitimize and regulate e-sports and skill-based non-monetary games, offering a potential lifeline to certain segments of the industry.
Advertisements and celebrity endorsements promoting real-money gaming will be barred, with strict penalties including fines and imprisonment for violations, signaling a crackdown on gambling-like activities.
Public and Industry Sentiment
Public sentiment, as reflected in posts on X, is mixed, with some praising the move as a protective measure against addiction among youth, while others criticize the policy inconsistency after years of industry encouragement.
As the bill is set to be tabled in Parliament on August 21, 2025, the future of India’s online gaming sector hangs in the balance, with stakeholders bracing for a transformative impact.
Alfred Lee
