The Indian government’s bill to ban Real Money Games (RMG) at the federal level is making rapid progress in the legislature.

The Lok Sabha, the lower house of the Parliament of India, approved the Promotion and Regulation of Online Gaming Bill 2025 shortly after it was introduced to the house by the governing Union Cabinet on Wednesday.

Ashwini Vaishnaw, the Minister for Electronics and Information Technology, the Ministry that drafted the bill, introduced the bill to the Lok Sabha and explained its rationale and objectives, as reported by Indian media. The government is particularly concerned about illegal gambling and the psychological and financial impact it can have on consumers. 

“Online money gaming has become a matter of concern as such platforms have led to addiction and have also been used for fraud and cheating and it has also led to financial losses to people,” he told legislators, according to the Deccan Chronicle.

The Indian legislative process will likely now see the bill undergo further scrutiny in the Lok Sabha before heading to the Rajya Sabha, the legislative upper house. Upon approval there it will be sent to President Droupadi Murmu for final signature.

Its approval, which is looking very likely based on the Lok Sabha’s hasty vote in favour, will have far reaching consequences for Indian gaming. The bill will not lead to a shutdown of the established gaming markets in Goa, Daman, and Sikkim, nor the prospective one in Karnataka, but will prevent any nationwide operations.

Key points include:

• Encouragement of esports and online social gaming, with the government seeing the growth of the former in India as both a grassroots and professional activity similar to traditional sports.
• Outlawing any federal operations of gaming for money with the offer of a monetary prize. The legislation does not distinguish between some games as being skill based and others as games of chance, as has been done in other countries.
• Language is ambiguous around sports betting, but the government is clearly concerned about illegal betting operations, while paid-for fantasy sports and games like rummy and poker will be banned.
• A ban on anyone running or supporting such an operation – including via advertising and marketing, banking, and other financial services such as fintech and payments.
• A licensing system for companies which want to operate either esports or social gaming. Companies must prove that their operation does not fit the definition of a game of chance or skill.
• Establishment of a new regulatory authority to oversee this framework, which can accept and reject licences based on the abovementioned criteria.
• Fines of ₹1 crore (€110,000) for first time offenders and ₹2 crore (€220,000), or three years imprisonment in either case. Advertising RMG platforms could lead to a two year imprisonment of ₹50 lakh (€55,000), raised to two years or ₹1 crore for repeat offences.

Indian gaming responds

The Lower House vote, however, didn’t go without intense and vocal pushback from India’s online gaming sector.

Home Affairs Minister Amit Shah was bombarded with calls from multiple industry organisations urging him to intervene with the ban’s passage.

India’s Federation of Fantasy Sports (FIFS), the E-Gaming Federation (EGF), and the All India Gaming Federation (AIGF) initiated a joint response, warning that the ban would eradicate the country’s online skill-gaming sector and hinder not only PM Narendra Modi’s economy, but India’s ambitions to be a world leader in technology.

Local media outlets report that the joint letter read: “On behalf of the millions of young entrepreneurs, developers, and professionals working in India’s sunrise digital skill gaming sector, we write to you with the deepest respect and gravest concern regarding the news reports about the draft bill that seeks to ban all real money games, including those based on skill. 

“We earnestly request your urgent intervention and seek an opportunity to present our case, along with solutions that ensure responsible gaming while protecting users. 

“We firmly believe that progressive regulation and not prohibition is the way forward for the legitimate Indian industry. With your guidance, India can set a global example by building a safe, transparent, and thriving digital gaming ecosystem.”

Unification of legal frameworks

The draft ban essentially aligns guidance on online behaviour with what is considered illegal in the real world, particularly within the texts of the Bharatiya Nyaya Sanhita (BNS) 2023 – India’s Criminal Code.

Under the BNS, those found to operate or partake in any form of unauthorised betting or gambling face monetary fines and imprisonment from one to seven years.

This also applies to anyone involved with lotteries unauthorised by the state, with penalties ranging from six months of prison time, to fines, or both.

Similar measures will be brought to the online space under the new texts. Violating these laws could lead to the penalties mentioned above – including up to three years in prison and fines up to Rs 1 crore (£85.1k), while anyone advertising RMG products can be charged with two years in prison and up to Rs 50 lakh (£42.6k) in fines.

Are all types of games affected?

While fantasy sports games involve some level of skill, they are still considered Real Money Games under Indian law. Therefore, all companies and developers working on such games are certainly going to have to cease operations if the ban is signed into law.

And the domino effect is already in motion. Reports suggest that one of the biggest players on the Indian fantasy sports market, Dream11, has promptly announced it is closing down its RMG business arm.

This could have a domino effect on Indian cricket, with Dream11 being the sponsor of the Indian national cricket team as well as various other teams globally. The Board of Control for Cricket in India (BCCI) has stated that it is engaging with authorities regarding the future of the commercial relationship.

It is reasonable to expect that other companies in the space, such as My11 Circle, MPL, Winzo, GamesKraft, and 99Games are also thinking of doing the same as Dream11. Another company, Probo, has shut down its fantasy sports and opinion trading app, Team 11.

Global gambling conglomerate Flutter’s Junglee division will likely also have to brace for impact, although the varied catalogue of games it offers will help it stay afloat. SBC News has asked Flutter to comment.

Other online sports games might dodge the bullet, however. These include titles like Real Cricket and EA Sports FC, which fall under the esports category – which the government views as skill-based and therefore treats with preference.

Such games were even held on a pedestal from the parliamentary tribune by Minister Vaishnaw, who hinted that the government will look to set up a specialised esports authority to promote the genre across India.

And while the esports sector was quick to voice its gratitude, it did so cautiously as it witnesses how fast legislation can change.

For news outlet StoryBoard18, Akshat Rathee, Co-Founder and Managing Director of NODWIN GAMING, commented: “The government’s intent to recognise and promote esports is an encouraging step towards building a globally competitive ecosystem.

“However, precise definitions distinguishing esports, online gaming, online social gaming, and online money gaming are essential to avoid confusion among regulators, players, investors, and organisers.”