India’s Parliament has passed a landmark bill banning all online games played with money, a decision that has sent shockwaves through the country’s thriving digital gaming sector. The move, aimed at curbing financial and psychological harm, threatens the very survival of the multi-billion-dollar fantasy sports and online gaming industry.
The Promotion and Regulation of Online Gaming Bill 2025, cleared by the upper house on Thursday after approval by the lower house earlier this week, now awaits presidential assent, which is expected to be a formality.
The legislation prohibits online gaming services involving money, related advertisements, and associated financial transactions. It also lays down strict penalties, including fines and possible jail terms of up to three years for those found operating such platforms after the law takes effect.
Federal IT Minister Ashwini Vaishnaw defended the decision in parliament, stressing that the government has a responsibility to act against what it views as recurring “social evils.” The government has highlighted both the financial risks and the potential psychological harm such games may cause, particularly among young people.
The sudden passage of the bill has left industry leaders and investors stunned. India’s fantasy gaming and online betting industry was projected to reach $3.6 billion by 2029, supported by major global investors such as Tiger Global and Peak XV Partners. Now, many executives fear massive job losses and widespread app shutdowns, with billions in foreign investment potentially going to waste.
Popular platforms like Dream11, valued at $8 billion, and Mobile Premier League (MPL), valued at $2.3 billion, are directly under threat. These platforms, heavily promoted through marketing campaigns and endorsements by top Indian cricketers, have attracted millions of users.
On apps like Dream11, users can create fantasy cricket teams with entry fees as low as INR 29 and compete for prize pools offering payouts up to INR 300,000. Other leading companies, such as Games24X7, Zupee, and WinZO, may also be forced to shut down operations if the law is enforced strictly.
Industry groups are now consulting legal experts to challenge the ban in the Supreme Court. They argue that the government failed to hold adequate consultations before pushing the bill through and that games based on skill, such as poker and rummy, should be exempt from the sweeping prohibition.
The bill’s passage marks one of the most significant regulatory crackdowns on India’s digital economy in recent years, leaving the future of the online gaming sector hanging in the balance.
