The Indian House of Representatives on Wednesday threatened to impose a comprehensive ban on real money gaming while promoting competition and casual games while promoting esports and casual games without financial interests, disrupt billions of dollars in investments and have a major impact on the real money gaming industry, which could see Widese shutdowns.
The act, entitled Promotion and Regulation of the Online Games Bill of 2025, is intended to ban real estate games across the country, based on skills or accident, as TechCrunch previously reported based on a draft version.
“The bill was prioritized for the welfare of society and to avoid the great evil that creeps into society,” said India's IT Minister Ashwini Vaishno, as he introduced the bill in Parliament.
The proposed law restricts banks and other financial institutions from allowing for domestic, immovable games trading. Those who offer these games could be jailed for up to three years. It can be up to £10 million (approximately $115,000), or both. Additionally, celebrities who promote such games on media platforms could be liable for up to two years in prison or a fine of £5 million (approximately $57,000), the bill said.
Vaishnaw said the decision to bring the law is to address several harmful cases, including cases in which an individual is allegedly killed by suicide after losing money in the game. However, industry stakeholders attribute these cases largely to offshore betting and gambling apps.
“This Act will face a lawsuit as it fails to test proportionality under Article 19(1)(g),” said Megna Bal, of the Esya Centre, a New Delhi-based think tank. “Instead of protecting consumers, we will be unlocking our doors for illegal offshore gambling platforms, the real source of financial harm, whilst demolishing obedient onshore companies.”
Article 19(1)(g) of the Indian Constitution guarantees the right of citizens to practice any occupation, to continue their occupation, trade or business.
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Prior to the introduction of the bill in the Indian Parliament, industrial groups wrote a letter to Prime Minister Narendra Modi on Tuesday evening, urging them to intervene. A letter sent by the Indian Fantasy Sports Federation, All India Game Federation, and the e-gaming coalition warned that copies of the paper were reviewed by Techcrunch – the proposed law could benefit “illegal offshore gambling operations”. These industry associations represent Dream Sports, MPL, Winzo, GamesKraft, Nazara Technologies and Zupee.
“By shutting down a regulated and responsible Indian platform, we drive (millions) players in the hands of protection, consumer protection, tax-free MATKA networks, offshore gambling websites, and airplanes in flight,” the letter states. (MATKA is a type of illegal gambling that occurred in India, including bets on random numbers.)
Three industry groups estimated that Indian real estate gaming startups will contribute cumulative revenues of £300 billion (approximately $3.6 billion) and £200 billion (approximately $22.9 billion) each year, with a combined valuation of £2 trillion (approximately $23 billion) in direct and indirect taxes. It also forecasts a combined annual growth rate of 28%, double the size of the industry by 2028. The industry group warned that the blanket ban could result in the loss of more than 200,000 jobs and shut down more than 400 companies.
A similar letter was also written by these three industry associations to the Home Minister of India Amit Shah. Some investors in India and around the world are calibrating their responses. Those familiar with the issue told TechCrunch. The sources didn't want to name the plan as the plan has not yet been made public.
Public Nazara Technologies, which previously invested in real estate gaming platforms such as Pokerbaazi and Classic Rummy, closed £1,220 (about $14) on Wednesday, falling 12.84%. However, the company previously revealed in a stock exchange filing (PDF) that it has not “directly exposed” to a realistic gaming business, and that these platforms are not contributing revenue based on modern finances.
Dream Sports and MPL are two of the top real money game startups and declined to comment.
The bill was passed by audio vote in the raucous House within seven minutes of being introduced for discussion. Currently, the Senate and the President need approval to become law.
Meanwhile, some casual gaming and esports companies are welcoming the move.
“This decision can focus on continuing concerns as a business, so we praise building a great IP for India and the world rather than having to explain to our audience what we do first.”
Krafton is a Korean gaming company behind the popular battle royal game Pubg.
Akshat Rathee, co-founder and managing director of eSports Company Nodwin Gaming, a subsidiary of Nazara Technologies, said the law requires a clear distinction between eSports, online games, online social games, and well-defined and uniformly understood online money games.
“The lack of an exact definition often led to ambiguity and fusion around the term “esports.” Such overlap can cause confusion not only for regulators but also for players, teams, investors and organizers who work hard to build this industry,” he said.
Bal also told TechCrunch that the bill “destroys esports” as authorities established by the Indian government determine the effectiveness of esports.
“The impact goes beyond the actual money game, and even relies on it, and even into the broader ecosystem of businesses that actually present significant impacts in the AVGC (animation, visual effects, games, cartoons) sector,” she said.
In 2023, the Indian government revised its information technology (mediation guidelines and digital media ethics code) rules, and in 2021, it curtailed “user harm” from real money games to limit illegal bets and gambling while allowing legitimate games. However, the self-regulation approach has declined due to conflicts between industry stakeholders over enforcement and standards.
New Delhi in 2023 placed a 28% tax on online games, suppressing real money play and stimulating protests from industry stakeholders. Top investors, including Tiger Global, Peak XV Partners and Kotak, have cut Modi to rethink, warning of $2.5 billion amortization and potential losses to 1 million jobs. However, even if companies challenged a retroactive application before the Supreme Court, the tax remained intact. Recent reports suggest that it could be revised upwards up to 40% under the new rules.
Rohit Kumar, founding partner of New Delhi-based public policy company The Quantum Hub, told TechCrunch that the real problem with the new bill is the lack of a legitimate process.
“Regulations are needed, but such a rapid movement undermines India's reputation as a stable and predictable investment destination. If concerns existed, the government should have clearly signalled it from the start,” he said.