The Indian Parliament has recently passed the Promotion and Regulation of Online Gaming Act, 2025, which bans all online money-earning games. Under this law, it is now illegal to offer, promote, or play in real money games, whether based on skill, chance, or both. This move has sparked widespread debate among gaming companies in India, players, and policymakers, as it will change the future of online gaming in India.
The Context: Rapid Growth and Rising Risks
Many factors have made online gaming in India a massive phenomenon:
- Boosted internet infrastructure and the rollout of 5G have improved connectivity, even in rural areas.
- Smartphones and affordable mobile data have led to easy access for everybody in India. A recent survey by MoSPI has stated that over 85% of Indian households own smartphones, and 86.3% have internet access at home.
- The gaming market was worth $2.2 billion in 2023, and it is projected to grow to $8.6 billion by 2028, at a CAGR of 27.4%. These numbers reflect the growing digital adoption.
What are the key drivers behind the ban?
Here are the main reasons India’s regulators decided to impose a ban on online real cash games and online money-earning games in India :
1. Financial and Psychological Harms
- According to an editorial by Drishtiias, about 45 crore Indians collectively lose around ₹20,000 crore annually on online real-money gaming platforms.
- Young people are especially vulnerable: a study found that 23% of youths report stress or negative thoughts due to gaming, and 87% of students play online games regularly.
- There are numerous documented cases in India where people have spent large sums of money when coming in contact with online game cash withdrawal and real cash games, leading to severe emotional distress.
2. Unclear regulations & Legal gaps
Every state in India is taking a different approach towards online gaming apps. For example, Telangana has banned all online gaming apps, while Andhra Pradesh has banned online gambling apps.
Meanwhile, states like Karnataka are considering allowing skill-based games but leaning towards banning betting and games of chance.
As there are many legal gaps and less clarity about regulations between skill-based gaming and gambling, many legal battles continue to take place, and some platforms are still operating in grey areas.
3. Money Laundering, Illegal Finance & National Security
Many unregulated real money earning apps in India and online casino India platforms are getting flagged for money laundering and misuse of financial systems. The Parliamentary Standing Committee has recorded non-transparent payment routes, misuse of the Liberalized Remittance Scheme (LRS), and financing of criminal activities.
4. Taxation & Economic Concerns
When gambling apps or illegal games operate outside regulation, they cause significant revenue losses, making it urgent for the government to step in and curb such activities. At the same time, the GST impact is considerable, with a 28% tax proposed on the total value of bets. This could threaten the survival of many businesses, particularly the smaller ones.
5. Addiction, Mental Health & Social Impact
A WHO report has shown the risks of addiction in online gaming in India. These games often use algorithms such as reward circuits to influence user behavior, encouraging people to keep playing in an attempt to recover losses.
Many people who are underage or vulnerable face emotional and financial distress because of these games. Many reports have shown that many people end up committing suicide due to the loss of savings through online gaming apps.
What measures have already been taken & what does the ban imply?
To deal with these issues, India has adopted a multi-pronged strategy. The ban on real-money gaming is one part of it, but several legal and regulatory measures already exist.
- Platforms that offer money games should register with self-regulatory bodies, and their apps will be monitored for illegal content or misleading ads under the IT Act & Intermediary rules.
- The government banned over 1,524 betting and gambling websites and mobile apps in India between 2022 and mid-2025 under Section 69A of the IT Act.
- The Bhartiya Nyaya Sanhita, 2023 law introduced strict punishments for unauthorized betting and gambling, with 1 to 7 years of imprisonment and fines.
- Unregistered and non-compliant platforms will be blocked. Digital gaming platforms are required to follow the same tax rules as any other business under the GST and IGST rules.
These laws are aiming for even stricter control, where real-money gaming will be extremely restricted and under some regulation, could be completely banned, especially in those cases where betting, chance-based play, or cash stakes are involved.
Read Also: Slot Machine Addiction Psychology
What the ban covers & what might be banned?
While not all details are fully settled (as legal challenges, state rules vary), these platforms are likely to be covered under the ban:
- All real money earning apps in India or platforms where entry or participation requires cash, stakes, bets, or withdrawal of real money.
- Fantasy cricket apps, real money poker apps, cricket betting apps, and online game betting apps in India would be covered under the ban in many states.
- Promotion and advertising of illegal games or real money games would also be prohibited.
- Activities like online cash withdrawal from unregulated platforms may get blocked or penalized.
There are many fantasy apps in India that argue they are skill-based and may still try to challenge the ban in court. Dream 11 has been banned in some states; it is one of the examples of how state-level bans already exist or have been examined.
Why the blanket approach (ban) vs regulation
Given the risks, the government has imposed blanket bans on online money-earning games such as real money games, online casinos, cricket betting apps, and real money poker apps in India. Supporters argue this makes enforcement easier, which could prevent fraud in grey areas while protecting the users from the dangers of online cash games in India.
However, many critics are arguing that such bans could hurt the businesses of many authorised fantasy gaming apps in India that operate on skill. These bans can shift many players toward offshore or illegal poker apps and online casino sites in India, which are hard to monitor. All these things can lead to loss of tax revenue, jobs, and growth in India’s gaming sector.
What are people worried about?
Despite good intentions, there are many challenges that the blanket ban could face:
- Enforcement is difficult as users bypass restrictions through VPNs, foreign servers, or alternate payment channels.
- Definition issues also persist since the line between skill and chance games is often unclear. This can lead to overreach, where legitimate platforms with safeguards like age checks and fair play get penalized along with illegal ones.
- The economic impact is significant as a ban on apps may hurt gaming startups, employees, and also reduce potential tax revenues from gambling in India.
Conclusion
The ban on real money earning apps in India, fantasy gaming apps, online cash games, and similar platforms is not just a political move; there is so much more to the story, so much data has been gathered on economic losses, mental health risks, legal issues, and fraud.
While the gaming sector is a rapidly growing part of India’s digital economy, regulation has been lagging. The key challenge is balancing safety with growth: stopping harmful online casino and real cash games while supporting skill-based platforms and economic potential. A regulated model with clear rules, consumer protection, and taxation could work better, but the urgency of risks has pushed India toward blanket bans.
FAQs
The government has introduced the Promotion and Regulation of Online Gaming Act, 2025. This law bans all online money-earning games where players put in real money to win cash. Games that are just for fun or entertainment, without money involved, are still allowed.
No, gambling is not fully banned. It depends on the state. Some states allow lotteries or horse racing, while others have banned almost all forms of gambling. The new law only focuses on real-money games played online.
Even before the central law, some states had their own bans. For example, Tamil Nadu, Telangana, and Andhra Pradesh had already stopped fantasy apps and other real cash games in India. Games like Dream 11 were already allowed in states like Assam, Odisha, and Sikkim.
No, not all online games are illegal. You can still play normal video games, e-sports, or other free apps. Only online money-earning games such as poker apps, cricket betting apps in India, or platforms that allow online game cash withdrawal are illegal now.
Only a few of the popular apps are on the radar now, like these apps:
- Dream 11 (in certain states)
- MPL Fantasy
- PokerBazzi
- RummyCircle
