India’s government is set to propose a blanket ban on real-money gaming, sending shockwaves through the booming online gaming industry. The new legislation could restrict all online games involving stakes, whether based on skill or chance, marking a major regulatory shift.
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According to a draft of the proposed law, verified by multiple sources including a consultant from the IT ministry and industry insiders, the government plans to prohibit financial transactions for real-money games and ban their advertisements entirely.
What the New Legislation Covers
Tentatively named The Promotion and Regulation of Online Gaming Act, 2025, the law will outlaw both real-money gaming operations and related transactions. The draft states:
“No bank, financial institution, or any other person facilitating financial transactions or authorization of funds shall engage in, permit, aid, abet, induce, or otherwise facilitate any transaction or authorization of funds towards payment for any online money gaming service.”
In short, the government is aiming to cut off all avenues for real-money gaming in India.
Impact on India’s Gaming Industry
Real-money gaming has been the largest revenue driver for India’s online gaming sector. According to Lumikai, a gaming-focused VC firm, the industry generated $3.8 billion in FY 2023–24 — a 23% increase from the previous year. Of this, real-money gaming accounted for $2.4 billion, highlighting how significant the sector has become.
The proposed ban could reshape the industry landscape, forcing companies to pivot toward free-to-play or skill-based games without financial stakes.
Why the Ban Is Being Considered
The Indian government’s move comes amid growing concerns over gambling-related risks, underage participation, and financial fraud. While the online gaming industry has flourished, regulators are worried about the social and economic impact of real-money gaming.
Industry insiders warn that a blanket ban could slow the rapid growth of India’s gaming market and push players toward offshore platforms, which remain unregulated.
What Comes Next
The draft legislation is currently under review and could be formally proposed later this year. Stakeholders, including gaming companies and investors, are closely monitoring developments, as the ban could redefine the future of online gaming in India.
For now, companies may need to prepare compliance strategies and explore alternatives to real-money gaming to stay in the market.
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