Image Source:firstpost
New Delhi, August 2025 – In a bold regulatory pivot, the Indian government has proposed a sweeping ban on online games involving monetary stakes—including those traditionally categorized as games of skill. The move comes amid mounting public health concerns, legal complexity, and growing evidence of financial harm and addiction among players.
Government’s Decisive Move.
As of August 19, 2025, a draft of the “Promotion and Regulation of Online Gaming Bill, 2025” stipulates a blanket prohibition on real-money online games, regardless of whether the outcomes are based on skill or chance.
The Cabinet has since approved this legislation, paving the way for its presentation before Parliament.
Under the proposed law:
Operators of such platforms could face up to three years of imprisonment and fines of up to ₹1 crore.
Advertising of money-based gaming would be banned, and banks/payment gateways would be barred from processing related transactions.
Why the Ban? Risks and Harms
The bill cites extensive addiction risks, psychological and financial harm, and manipulative gaming designs that promote compulsive behavior.
Alarming data highlights the severity of these issues—for instance, Karnataka has recorded 32 suicides over 31 months attributed to online gambling.
Mental health experts warn of growing dependency among young people, fueled by dopamine-driven designs and celebrity endorsements that normalize these platforms.
Industry Alarm and Economic Fallout
The gaming industry—an emerging powerhouse—has expressed outright shock. Stakeholders argue that the ban would devastate a burgeoning sector that currently contributes significantly to GDP, innovation, investment, and employment.
According to the All India Gaming Federation:
The industry is worth around $3.7 billion, with potential to surpass $9 billion by 2029.
Much of its revenue depends on real-money formats—eliminating which could effectively kill the business model overnight.
The government stands to lose an estimated ₹20,000 crore in annual tax revenue.
If the ban pushes users to unregulated offshore platforms, revenue loss and consumer harm could escalate.
Additionally, industry bodies warn of constitutional challenges—highlighting that the Supreme Court has historically deemed fantasy sports as games of skill, granting them protection under the right to trade and business (Article 19(1)(g)).
States vs. Centre: Differing Tactics
This central crackdown contrasts with earlier state-level efforts:
Karnataka proposed a regulatory body to oversee gaming, differentiating between skill and chance, and including addiction support mechanisms.
Maharashtra has pushed for its own ban on online games for youth protection.
States like Andhra Pradesh have suffered from rampant underground betting despite earlier bans, highlighting enforcement challenges.
The Broader Legal Environment
India’s legal framework around online gaming is fragmented and ambiguous. Although fantasy sports are deemed skill-based by courts, other forms of gaming exist in a legal grey area.
Outcomes-driven platforms often masquerade as skill-based to bypass regulation, while offshore platforms evade oversight entirely.
Current measures—such as IT Rules (2021) and site blocks—have demonstrated limited success, with enforcement lagging behind technological evasion.
If passed, the bill would signify a profound policy shift—from attempting regulation to outright elimination of real-money gaming. As the law proceeds to Parliament, key issues will likely dominate debate:
The constitutional legitimacy of distinguishing or banning skill-based games.
Economic implications for businesses, jobs, and tax revenue.
Risks of driving users towards unregulated offshore alternatives.
The need for public health frameworks, addiction support, and balanced regulation.
[Newsroom staff written original, where key claims or facts are used, I’ve referenced the original sources (like
NDTV Profit,
The Economic Time,
The Times of India, Hindustan Times,
India Today,
ChronicleAI,
Reuters, FT, etc.) transparently.]
