What is the Real Money Gaming Ban?
The Promotion and Regulation of Online Gaming Act 2025 (PROGA), passed in August and set to come in force on October 1st, 2025, bans all real-money gaming, whether they are skill-based or chance-based. Prohibited games include card games like rummy, online board games like ludo, and fantasy sports. Game companies cannot
- Advertise such platforms, and
- Accept financial transactions for these games, with gateways being instructed to block them.
The act also creates a National Online Gaming Commission (NOGC) to regulate licensing, enforce penalties, and monitor compliance. Violations could lead to fines up to ₹1 crore and imprisonment of up to 3 years.
Political and Economic Arguments
Supporters of the India online gaming ban argue that it protects citizens from addiction, financial losses, and fraudulent operators. The government has also positioned PROGA as a step toward promoting esports and protecting youth.
However, critics, including opposition parties, economists, and industry leaders have argued that banning cash-based skill games undermines innovation, jobs, and investments, with the latter having contributed heftily to GST collections over the last few years. Some experts have noted that the act erases the careful line drawn between games of skill and chance in various court rulings, setting the stage for various legal and constitutional challenges.
Consequences One Month After Passage
Table of contents [Show] Players and Bettors | Millions of Indians who played fantasy leagues, poker, and rummy contests have lost access. Wallet balances, often with thousands of rupees loaded onto them remain frozen, and there are concerns that users may shift to unregulated offshore operators, raising fraud risks. |
Employees | The law has triggered mass online gaming layoffs. Gameskraft cut 120 jobs, MPL (Mobile Premier League) plans to terminate 60% of its Indian workforce, and Flutter exited the market entirely, affecting over 1,000 employees. |
Companies | Major operators are pivoting to other revenue streams. For example, Dream11, one of the most popular fanstasy sports platforms, is shifting to an ad-driven model, while renegotiating its BCCI sponsorship to avoid violating the ad ban. However, investor sentiment has turned negative, with global firms halting expansion in India. |
Government Revenue | The government revenue loss from gaming is significant. Before the real-money gaming ban, industry GST contributions were projected in the thousands of crores annually. However, officials have argued that social benefits outweigh fiscal losses, as an entire generation will not be lost to the vices of gambling. Analysts remain skeptical about long-term revenue recovery, and the ensuing health of e-sports and online gaming. |
Current Litigation
Several affected firms have filed petitions challenging the Act, claiming it violates Article 19(1)(g) — freedom of trade and profession. The petitions filed in various High Courts have noiw been clubbed into a single Supreme Court gaming case, with hearings expected soon. The outcome will redefine online gaming regulation in India for years.
Outlook
The Promotion and Regulation of Online Gaming Act 2025 has already disrupted the industry:
- Players have been locked out of their wallets which often have substantial sums of money. Some may look at illegal platforms to recoup their losses.
- Companies are shrinking with debt piles and lost revenue streams.
- Jobs are vanishing, leaving many with personal debt and low prospects.
Whether the Act ultimately safeguards consumers or damages innovation will depend on the courts and how the NOGC online gaming framework is implemented in practice.
Keywords: Promotion and Regulation of Online Gaming Act 2025, India online gaming ban, real-money gaming ban, NOGC online gaming, esports in India, fantasy sports ban, online gaming layoffs, Supreme Court gaming case, online gaming regulation India, government revenue loss gaming.
