India has passed a bill banning money-based online games, raising concerns about potential job losses and investor apprehensions. The bill aims to curb what the government describes as “social evils” and will lead to the immediate shutdown of apps once the country’s president signs it into law. The thriving Indian online gaming sector is currently evaluating legal options in response to the new regulations, according to industry sources.
The government, however, stands firm on its stance, asserting its duty to address the negative impacts associated with these games. The move has ignited fears of widespread job losses within the industry, as well as a slowdown in one of the fastest-growing sectors in the technology space. Investors are also worried about the long-term implications for their stakes in the market.
Fantasy-sports gaming experts warn that India’s recent ban on online money-based games could drive addicts to unregulated apps and offshore platforms that pose new financial and social risks. “Many will move to offshore platforms because of the addictive nature – they will find alternate means to get that dopamine hit,” said Viren Hemrajani, a Mumbai-based fantasy cricket analyst. “This leads to fraud and scams because everything is now unregulated.
Even if users win, there is no guarantee they get their money back,” he added, citing various apps posing as shopping platforms illegally offering coins and tokens to play. The Promotion and Regulation of Online Gaming Act of 2025 has shocked an industry that is backed by venture capital firms such as New York’s Tiger Global and Bengaluru-based Peak XV Partners and was expected to be worth $3.6 billion by 2029. Platforms MPL and rival Dream11 became popular in recent years by offering financial prizes to users competing in fantasy cricket games, where players form virtual “teams” of real-life players and earn points based on their on-field performances.
Both apps have shut down their money games following the ban. The industry argues that these games rely on skill and therefore are not gambling, which was already highly restricted in India. Critics, however, contend that fantasy sports and other real-money gaming apps are essentially forms of gambling, as players stake money on contests whose outcomes they cannot control.
Modi’s government has repeatedly expressed its concerns over money-based games, saying they cause addiction and that it has a duty to act against “social evils.”
“Families have lost their savings. Young people have fallen into addiction. In some heartbreaking cases, financial distress linked to these games has even led to suicides,” said a government press statement.
Ban impacts online gaming industry
The World Health Organization says gaming addiction is marked by a loss of control, prioritizing play over regular daily activities, and continuing despite harmful consequences. India has a massive user base of online gamers, including 138 million who play paid games, according to a 2024 report by Eximius Ventures, a Gurugram-based venture capital firm.
Some users predict that the ban will boost the gambling black market that has long operated in the shadows. “More and more people will use VPNs (Virtual Private Networks) or offline bookies to access illegal and offshore games,” said Varun Sharma, who spent eight years playing fantasy games, mainly basketball, winning up to 1.2 million rupees ($13,713) in a single game. Sharma, 24, said he saw a sudden uptick in betting offers and schemes on messaging apps like Telegram after the bill was passed.
He described himself as “heartbroken and unable to move on” since the ban took effect. The new law prohibits banks and payment companies from facilitating financial transactions for real-money gaming. Determined players could find workarounds, such as depositing money into crypto wallets or using U.S. payments firm PayPal, which are beyond India’s purview.
The Ministry of Electronics and Information Technology did not respond to requests for comment on the ban, its potential risks and any future steps. The gaming industry has warned that companies will have to either downsize or shut down completely. MPL has already announced plans to lay off a significant portion of its local workforce.
Companies offering games like rummy and poker are among those challenging the ban in court. India’s top court on Monday said it would hear the combined petitions, but it was not immediately clear when. Some proponents of online gaming advocate for regulations, such as setting limits on game time, money a user spends, or the ratio between entry fees and prize money, to curb the risks of addiction and financial hardship.
Nandan Kamath, a lawyer in Bengaluru with expertise in sports and gaming law, said more discourse on users’ rights and how they choose to spend their money and time in digital domains is needed. “A clear argument can be made that entirely limiting the expression of skill-gaming through a ban is an unreasonable restraint on both expression and profession,” he said. Kamath urged the government to promote healthy alternatives that might satisfy gamers’ urges, provide de-addiction support through digital health programs, and enforce regulations in the unregulated market to prevent user harm.
He suggested that gaming companies could evolve with growing technology, artificial intelligence, and sizable user databases. “Some of these companies might have another inning, using a new playbook,” he concluded.
