India Passes Bill Banning Money-Based Online Games, Fantasy Gaming Industry Faces Shutdown
Bengaluru — India’s Parliament has passed the Promotion and Regulation of Online Gaming Bill 2025, effectively banning online games involving real money — a move set to disrupt the $3.6 billion fantasy gaming industry and impact major players like Dream11, Mobile Premier League (MPL), Zupee, and Games24X7.
The bill, cleared by the Rajya Sabha on Thursday after earlier passage in the Lok Sabha, prohibits all “harmful” money-based online games, advertisements, and related financial transactions. The government cited mental health issues and financial harm, particularly to youth and vulnerable users, as key motivations.
Though the bill awaits presidential assent, approval is considered a formality. Its implementation could trigger immediate app shutdowns, job cuts, and massive losses in foreign investment, according to industry leaders.
Companies like Dream11 (valued at $8 billion) and MPL ($2.5 billion) — backed by global investors like Tiger Global and Peak XV Partners — have expressed serious concern over the regulatory shift. Executives warn of a collapse in India’s fast-growing gaming startup ecosystem.
The bill’s passage marks a turning point for India’s online gaming sector, which has expanded rapidly, driven by fantasy sports, skill-based games, and endorsements from top Indian cricketers. The ban has come as a shock to the industry, which had anticipated further regulation — but not a complete prohibition.
Stakeholders are now calling for clarity, structured policy frameworks, and dialogue to avoid what they term as “regulatory overreach” that could stifle innovation and entrepreneurship in India’s booming digital entertainment space.
Comments are closed.