India Moves to Ban Real-Money Online Games

• The proposed bill targets online games involving monetary stakes, citing addiction and financial harm as key concerns for regulation.

Government Targets Financially Risky Gaming Apps

India’s government has introduced a bill aiming to prohibit online games played with money, citing psychological and financial risks associated with such platforms. The Promotion and Regulation of Online Gaming Bill 2025 outlines a broad ban on offering, promoting, or facilitating games where users deposit money with the expectation of winning financial rewards. This move could significantly impact an industry projected to reach $3.6 billion in market value by 2029, according to venture firm Lumikai. The legislation defines these games as those involving monetary enrichment, regardless of whether outcomes are based on skill or chance.

Fantasy sports platforms like Dream11 and Mobile Premier League (MPL) have gained popularity through celebrity endorsements and seasonal engagement, particularly during the Indian Premier League. Dream11 currently holds an $8 billion valuation, while MPL is valued at $2.5 billion, based on PitchBook data. Despite their success, both companies declined to comment on the proposed legislation. The IT ministry, which drafted the bill, has not yet responded to media inquiries.

Legal Penalties and Design Concerns

Under the bill, individuals or entities offering real-money games could face up to three years in prison and financial penalties. Lawmakers argue that such platforms often employ manipulative design elements and addictive algorithms that encourage compulsive behavior. These features, they claim, can lead users into financial distress, especially among younger and vulnerable populations. The bill’s language reflects growing concern over the social impact of monetized gaming experiences.

During peak seasons, such as the Indian Premier League, apps like Dream11 allow users to enter contests for as little as 8 rupees (approximately $0.10), with prize pools reaching up to 1.2 million rupees ($14,000). While these games are marketed as entertainment, critics say they blur the line between gaming and gambling. The legislation seeks to draw a clear boundary by banning platforms that offer financial incentives. It also aims to curb promotional efforts that may mislead users about the risks involved.

Industry Implications and Future Outlook

If passed, the bill would represent a major shift in India’s approach to online gaming regulation. Real-money gaming apps have attracted substantial foreign investment, and a ban could disrupt business models built around microtransactions and competitive play. The government’s stance reflects a broader trend of scrutinizing digital platforms for their societal impact. While e-sports and educational games are excluded from the ban, the scope of enforcement remains a topic of debate.

The proposed law also prohibits advertisements and financial transactions related to banned games, potentially affecting banks and payment processors. Industry observers note that the bill could reshape India’s digital entertainment landscape, especially if enforcement is strict. Some experts believe the move may encourage developers to pivot toward non-monetized formats or explore international markets. The long-term effects will depend on how the legislation is implemented and whether legal challenges arise.