Ashwini Vaishnaw, Electronics and Information Technology- Indian parliament passes bill banning money-based online games, citing financial and psychological harm.
- The $20B+ industry, backed by Tiger Global and Peak XV, faces shutdowns and mass job losses.
- Popular fantasy gaming platforms like Dream11 and MPL could cease operations overnight.
- Gaming firms plan to challenge the law in Supreme Court, arguing skill-based games should be exempt.
The Parliament of India on Thursday passed the ‘Promotion and Regulation of Online Gaming Bill 2025’, banning all money-based online games, advertisements, and financial transactions tied to them. The move, framed as consumer protection, could shutter billion-dollar startups like Dream11 and Mobile Premier League (MPL), disrupt foreign investment, and cause widespread job losses.
The sudden passage of the bill marks one of the strictest government crackdowns on India’s booming gaming industry. Valued at over $2 billion today and projected to hit $3.6 billion by 2029, the fantasy gaming sector attracted heavy bets from global investors like Tiger Global and Peak XV Partners. Industry leaders warn that the ban risks wiping out years of growth and investor confidence in India’s digital economy.
Funding & Industry Value
- Projected industry size: $3.6 billion by 2029 (pre-ban estimate).
- Major investors: Tiger Global, Peak XV Partners, and other foreign VCs.
- Top platforms impacted: Dream11 ($8B valuation), Mobile Premier League ($2.3B), Games24X7, Zupee, WinZO.
Government Rationale
The government said the ban aims to curb financial losses and psychological harm linked to money-based gaming. Federal IT minister Ashwini Vaishnaw told parliament:
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“It is the duty of the government and the parliament to take strict action against social evils, which keep erupting time and again.”
Legal & Enforcement
- Bill name: Promotion and Regulation of Online Gaming Bill 2025.
- Penalties: Up to 3 years in jail and monetary fines for operators.
- Next step: Presidential assent (largely procedural).
Industry Pushback
- Gaming groups are consulting lawyers about filing challenges in the Supreme Court.
- Arguments include lack of industry consultation and the claim that skill-based games like poker and fantasy cricket should be exempt.
Consumer Impact
Apps like Dream11 and MPL allow users to form fantasy cricket teams for as little as ₹29 ($0.33), competing for prize pools with top rewards reaching ₹3,00,000 ($3,438). Such platforms have relied heavily on endorsements from top cricketers to fuel popularity.
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What’s Next?
Legal battles are expected in India’s Supreme Court in the coming weeks. If upheld, the law may set a global precedent for regulating online gaming, while sparking fears of capital flight from India’s startup ecosystem.
Quick Facts
- Bill: Promotion and Regulation of Online Gaming Bill 2025
- Ban: All money-based online games, ads, financial transactions
- Penalties: Up to 3 years in jail, fines
- Industry value (pre-ban projection): $3.6B by 2029
- Top companies impacted: Dream11, MPL, Games24x7, Zupee, WinZO
- Major investors: Tiger Global, Peak XV Partners
Editor’s Note
India’s blanket ban on money-based online gaming puts it at odds with global regulatory approaches, where many countries distinguish between gambling and skill-based games. How the Supreme Court responds to industry challenges will determine whether this move reshapes or dismantles India’s online gaming sector.
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