The Promotion and Regulation of Online Gaming Bill, 2025: A Game-Changer for Real-Money Gaming in India
The landscape of online gaming in India is poised for a seismic shift following the passage of the Promotion and Regulation of Online Gaming Bill, 2025. The Rajya Sabha ratified the Bill on August 21, 2025, by a swift voice vote, just hours after the Lok Sabha approved it. Once it receives the President’s assent, this legislation is set to enforce a blanket ban on all real-money gaming (RMG) platforms operating in the country, including fantasy sports and card games where users can stake money for potential rewards.
Overview of the Bill’s Provisions
The Bill explicitly aims to “prohibit the offering, operation, facilitation, advertisement, promotion, and participation in online money games.” This expansive language targets not only domestic firms but also international operators providing services to Indian players. The government hopes this move will mitigate gambling-related risks associated with online gaming, which has drawn increasing concern from various quarters.
Historically, companies involved in RMG have sought legal protection through court rulings, finding success in various instances. However, this legislation signifies a notable shift in government policy, breaking away from previous IT Ministry regulations that aimed to establish a self-regulatory framework, which ultimately proved unmanageable.
Encouraging E-Sports and ‘Social Games’
While it ushers in stricter controls, the Bill isn’t entirely stifling for the gaming community. It paves the way for promoting e-sports as a legitimate competitive sport, along with ‘online social games’ that charge fees but do not involve stakes or wagers. This bifurcation indicates an attempt by the government to encourage specific harmless forms of gaming while cracking down on more hazardous financial risks associated with RMG.
The Challenges of Enforcement
Yet, the enforcement of this new law is fraught with challenges. Illegal betting sites have already demonstrated a knack for evading prohibitive measures through domain switching and using untraceable cryptocurrency wallets. According to the legislation, anyone found facilitating or partaking in online money gaming may face imprisonment for up to three years and hefty fines. This includes internet service providers (ISPs), banks, and celebrities who promote such platforms, potentially leading to pervasive consequences across various sectors of the economy.
The Impact on Service Providers
Under the new law, it will be illegal for banks and financial institutions to facilitate transactions for RMG platforms. Tech giants like Apple and Google would be compelled to remove these apps from their respective app stores. This may have cascading effects, prompting legal interpretations about what constitutes an online money gaming service and leading to confusion among service providers about compliance.
Vikram Jeet Singh, a partner at law firm BTG Advaya, pointed out that the sweeping regulatory language could ensnare various service providers, especially in a digital landscape already layered with complexities.
The Dark Side of the Ban
One of the most pressing concerns is that the ban on legal platforms may drive users toward the illegal underground market. Estimated at over USD 100 billion annually, this segment poses considerable risks related to tax evasion and national security, exploiting alternative payment channels like UPI mule accounts, hawala networks, and cryptocurrencies.
Kazim Rizvi, the founding director of The Dialogue, warned that aggressively cutting off the legitimate RMG industry could paradoxically amplify illicit activities rather than mitigate them. The new law may inadvertently encourage players to seek unregulated environments that operate outside government scrutiny.
Legal Landscape for RMG Platforms
Historically, online casinos and many gaming apps were deemed illegal under Indian law, classified as games of chance. Conversely, Rummy games and fantasy sports had previously been considered games of skill. The new Bill, however, looks beyond this distinction, applying equally to all online money gaming platforms.
This raises critical questions about the impact on domestic companies, which might find themselves snuffed out, while illegal offshore entities continue to thrive, potentially exploiting users even further.
Technical Challenges in Implementation
Implementing the ban will hinge on Section 69A of the IT Act, 2000, which permits blocking websites deemed harmful. However, like previous attempts to ban gambling sites, this approach faces numerous challenges. Tactics such as domain switching—where operators simply change their web addresses to avoid detection—have proven effective in the past.
Additionally, the pervasive use of mule accounts for financial transactions complicates matters. Such accounts—often rented from unsuspecting individuals—could undermine the effectiveness of the legislation while unjustly penalizing innocent parties.
Marketing Challenges and Identifying Non-Compliant Platforms
Advanced marketing tactics employed by betting companies, especially through micro-influencers, make it challenging to trace and penalize violations effectively. The lack of clarity in what constitutes an online money gaming service further complicates compliance for developers and platforms. The government may soon need to outline additional regulations to help service providers navigate this murky landscape.
The evolution of online gaming law in India serves as a complex interplay between regulation and user experience, designed to protect players but fraught with potential pitfalls. As the landscape shifts, many questions remain about the effectiveness and implications of the sweeping changes introduced by the Promotion and Regulation of Online Gaming Bill, 2025.
