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India bans real-money gaming, threatening a $23 billion industry

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India bans real-money gaming, threatening a $23 billion industry Jagmeet Singh PM PDT · August 20, 2025 India’s lower house of parliament on Wednesday passed a sweeping online gaming bill that, while promoting esports and casual gaming without monetary stakes, imposes a blanket ban on real-money games — threatening to disrupt billions of dollars in investment and significantly impact the real-money gaming industry, which could see widespread shutdowns.

Titled the Promotion and Regulation of Online Gaming Bill, 2025, the legislation aims to prohibit real-money games nationwide — whether based on skill or chance — and ban both their advertisement and associated financial transactions, as TechCrunch earlier reported based on its draft version.

“In this bill, priority has been given to the welfare of society and to avoid a big evil that is creeping into society,” India’s IT minister Ashwini Vaishnaw said in parliament while introducing the bill.

The proposed legislation restricts banks and other financial institutions from allowing transactions for real-money games in the country. Anyone offering these games could face imprisonment for up to three years, a fine of up to ₹10 million (approximately $115,000), or both. Additionally, celebrities promoting such games on any media platform could be liable for up to two years of imprisonment or a fine of ₹5 million (roughly $57,000), the bill states.

Vaishnaw said the decision to bring the legislation was to address several incidents of harm, including cases where individuals reportedly died

“This law is bound to face litigation as it fails the test of proportionality under Article 19(1)(g),” said Meghna Bal, director of the New Delhi-based think-tank Esya Centre. “Instead of safeguarding consumers, it dismantles compliant onshore companies while opening the door wider for illegal offshore betting platforms that are the real

Article 19(1)(g) of India’s Constitution guarantees citizens the right to practice any profession or carry on any occupation, trade, or business.

Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just a few of the heavy hitters joining the Disrupt 2025 agenda. They’re here to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $600+ before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They’re here to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | October 27-29, 2025 REGISTER NOW Ahead of the bill’s introduction in the Indian Parliament, industry bodies wrote to Prime Minister Narendra Modi on Tuesday evening, urging him to intervene. The letter — sent

“

The three industry bodies estimated that real-money gaming startups in India have a combined enterprise valuation of ₹2 trillion (approximately $23 billion), generate cumulative revenues of ₹310 billion (around $3.6 billion), and contribute ₹200 billion (roughly $2.29 billion) annually in direct and indirect taxes. They also project a 28% compound annual growth rate that would double the industry’s size

A similar letter was also written to Indian Home Minister Amit Shah

Publicly-listed Nazara Technologies, which has previously invested in real-money gaming platforms including PokerBaazi and Classic Rummy, saw its share price fall 12.84% on Wednesday to close at ₹1,220 (about $14). The company, however, earlier clarified in a stock exchange filing (PDF) that it has “no direct exposure” to real-money gaming businesses and that these platforms do not contribute to its revenues based on its latest reported financials.

Dream Sports and MPL, two of the top real-money gaming startups, declined to comment, while WinZO, another popular real-money startup, did not respond.

The bill was passed

Meanwhile, some companies in casual gaming and esports have welcomed the move.

“We applaud this decision as it allows us to focus on the ongoing concerns as a business — monetization, retention, and most importantly, building great IP for India and the world, rather than having to explain to our audiences what we are to begin with,” said Sumit Batheja, CEO and co-founder of Ginger Games, which is part of Krafton’s Indian gaming incubator and makes hyper casual games.

Krafton is the South Korean gaming company behind the popular battle royale game PUBG.

I welcome the Govt’s decision to prohibit Real Money Gaming & establish a strong regulatory framework. 🇮🇳Too many young lives were being lost to addiction & debt. This decisive step safeguards our youth while unlocking the future of Indian gaming — driven

Akshat Rathee, co-founder and managing director of esports company NODWIN Gaming, which is also a subsidiary of Nazara Technologies, said the law needs to have clear distinctions between esports, online gaming, online social gaming, and online money gaming that are clearly defined and uniformly understood.

“The absence of precise definitions has often led to ambiguity and conflation around the term ‘esports’. Such overlaps can create confusion not just for regulators, but also for players, teams, investors, and organizers who are working hard to build this industry,” he stated.

Bal also told TechCrunch that the bill “decimates esports,” as an

“The impact goes beyond real money gaming to the broader ecosystem of businesses that depend on it and indeed presents grave implications for the AVGC [Animation, Visual Effects, Gaming, and Comics] sector as a whole,” she said.

In 2023, the Indian government amended the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, to curb “user harm” from real-money games and proposed self-regulatory bodies to limit illegal betting and gambling while allowing legitimate games. However, the self-regulation approach faltered due to conflicts among industry stakeholders over enforcement and standards.

New Delhi imposed a 28% tax on online gaming in 2023 to curb real-money play, prompting an outcry from industry stakeholders. Top investors — including Tiger Global, Peak XV Partners, and Kotak —urged Modi to reconsider, warning of $2.5 billion in write-offs and the potential loss of one million jobs. The tax, however, remained in place, even as companies challenged its retrospective application in the Supreme Court. Recent reports suggest it may be revised upward to 40% under new rules.

Rohit Kumar, a founding partner of the New Delhi-based public policy firm The Quantum Hub, told TechCrunch that the real problem with the new bill is a lack of due process.

“Regulation is necessary, but abrupt moves like this undermine India’s reputation as a stable, predictable investment destination. If concerns existed, the government should have signaled them clearly from the outset,” he said.

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Jagmeet Singh

Jagmeet covers startups, tech policy-related updates, and all other major tech-centric developments from India for TechCrunch. He previously worked as a principal

You can contact or verify outreach from Jagmeet View Bio October 27-29, 2025 San Francisco Put your brand in front of 10,000+ tech and VC leaders across all three days of Disrupt 2025. Amplify your reach, spark real connections, and lead the innovation charge. Secure your exhibit space before your competitor does.

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