India’s parliament has passed the Promotion and Regulation of Online Gaming Bill 2025, banning all money-based online games, advertisements, and financial transactions linked to them. The decision threatens the future of India’s booming fantasy gaming industry, sparking fears of job losses, investor pullouts, and app shutdowns across the country.
What the Online Gaming Ban Means for India
The bill, passed by both houses of parliament and awaiting presidential approval, prohibits “harmful” online games played with money. The government cited not only the financial risks but also the psychological harm associated with online gambling-like activities.
Federal IT Minister Ashwini Vaishnaw emphasised the move as a moral duty, saying:
“It is the duty of the government and the parliament to take strict action against social evils, which keep erupting time and again.”
Impact on India’s $3.6 Billion Gaming Industry
India’s fantasy gaming sector, backed by major investors such as Tiger Global and Peak XV Partners, was projected to reach $3.6 billion by 2029. Now, companies like Dream11 and Mobile Premier League (MPL) face an uncertain future.
Industry executives warn of:
- Massive job losses in the gaming sector
- Shutdown of app-based businesses that attracted billions in foreign investment
- A chilling effect on India’s startup and tech ecosystem
Industry Pushback and Legal Challenge
Several Indian gaming groups are preparing to challenge the law in the Supreme Court, arguing that:
- The ban lacks adequate consultation with stakeholders
- Games of skill, like poker and fantasy cricket, should not be classified alongside gambling
- The blanket ban could stifle innovation in one of India’s fastest-growing tech industries
Why Fantasy Gaming Was Popular in India
Fantasy sports apps like Dream11 and MPL gained huge popularity thanks to endorsements by top Indian cricketers and aggressive marketing campaigns.
These platforms allow users to build virtual cricket teams based on real players, scoring points for runs, wickets, and catches in live matches. For millions of Indians, they combined sports engagement with money-based rewards.
What’s Next for India’s Online Gaming Sector?
With the bill likely to become law after the president’s signature, many gaming companies face the risk of complete shutdowns. Industry watchers believe the decision could reshape India’s digital entertainment landscape, pushing companies to pivot toward free-to-play models or shift focus outside the country.
The move also raises questions about foreign investor confidence in India’s tech sector, as billions in venture capital now hang in the balance.
