India has taken one of the world’s toughest stances against online gambling. On 21 August 2025, Parliament passed the Promotion and Regulation of Online Gaming Bill, a sweeping law that bans money-based gaming platforms while carving out protections for esports and educational games.
The move comes after government figures revealed the staggering scale of the problem: 450 million Indians—roughly a third of the population—have lost money gambling online, with combined losses topping $2.3 billion annually. The impact has been felt in families pushed into debt, young people trapped in cycles of addiction, and, in extreme cases, suicides linked to financial distress.
Targeting Predatory Platforms
The new law criminalizes the offering, promotion, and financing of online money games, including card platforms, poker apps, and India’s wildly popular fantasy cricket leagues. Violators face up to five years in prison and fines as high as ₹2 crore. Advertising such platforms can also attract prison terms, while banks and payment processors are barred from handling transactions tied to banned services.
“This legislation is designed to curb addiction, financial ruin and social distress caused by predatory gaming platforms that thrive on misleading promises of quick wealth,” a government statement said.
Officials argue the risks are not just social but systemic. Some platforms, operating offshore, have been linked to fraud, money laundering, and even terror financing, raising alarms about national security.
Drawing Boundaries
At the same time, the law is not an attempt to stamp out digital play altogether. India’s wider gaming industry is one of the largest in the world, and policymakers see potential in nurturing its healthier segments.
The Bill draws clear distinctions:
- Banned: Gambling apps, betting platforms, and money-based fantasy sports.
- Encouraged: Esports—organized competitive video gaming—recognized as legitimate sport, with government support for tournaments, training academies, and integration into youth sports policy.
- Supported: Social and educational games, registered with the government, that focus on culture, skills, or learning.
“It encourages e-sports, which are organized competitive video games, and promotes safe online social and educational games,” said Ashwini Vaishnaw, India’s Minister of Electronics and Information Technology. “It clearly separates constructive digital recreation from betting, gambling and fantasy money games that exploit users with false promises of profit.”
Prime Minister Narendra Modi echoed that message: “The new law will encourage esports and online social games, while at the same time, it will save our society from the harmful effects of online money games.”
Industry Pushback
Industry groups had urged the government to consider regulation and taxation rather than a blanket ban. They warned that outright prohibition could drive players to unregulated offshore platforms, creating new enforcement challenges while depriving India’s startup ecosystem of revenue.
But supporters counter that the social costs outweigh the economic gains. Addiction, financial collapse, and family distress, they argue, cannot be balanced against corporate profits.
The government insists the law was necessary to close legal loopholes. While gambling is already restricted under existing criminal codes and state laws, the online space had remained largely unregulated. By aligning digital gaming rules with offline standards, policymakers believe they have strengthened protections for citizens.
Global Lens
The legislation also positions India as a global leader in digital policy. The World Health Organization has recognized “gaming disorder” as a health condition, defined by a loss of control and persistence despite harmful consequences. India’s move aligns with this global recognition, but goes further in criminalizing money games while actively promoting constructive alternatives.
For esports players and developers, the law could provide a tailwind. With official recognition and government support, India could emerge as a global hub for competitive gaming, training talent for international tournaments and attracting investment into gaming technology.
The Bottom Line
India’s Online Gaming Bill is both ban and blueprint. By outlawing money-driven platforms, the government hopes to protect citizens from exploitation, fraud, and national security risks. By promoting esports and educational games, it aims to channel the country’s youthful energy into constructive, innovative, and globally competitive pursuits.
The challenge now will be enforcement. Offshore platforms have shown resilience in bypassing bans, and India will need robust regulatory authority, payment monitoring, and public awareness campaigns to make the law stick.
