Around 45 crore people lose close to Rs 20,000 crore every year in online real money gaming thereby prompting the Government to bring in the “Promotion and Regulation of Online Gaming Bill 2025” to protect the people. The Bill outlaws all online betting and gambling satta, jua activities — from online fantasy sports to online gambling (like Poker, Rummy and other card games) and online lotteries. Industry leaders like Dream11, Games24x7, WinZO and others now find themselves under heightened scrutiny.
The Bill was introduced and passed by a voice vote after brief remarks by Minister of Electronics and Information Technology Ashwini Vaishnaw amid protests in the House by Opposition members.
Online money game is one played by a user by depositing money in expectation of winning monetary and other enrichment.
Meanwhile, industry bodies representing real money game players — India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) — in a letter to Home Minister Amit Shah raised concerns over the Bill saying the online skill gaming industry is a sunrise sector with an enterprise valuation of over Rs 2 lakh crore and annual revenue exceeding Rs 31,000 crore. It contributes over Rs 20,000 crore in direct and indirect taxes annually and is projected to grow at a 20 per cent compound annual growth rate (CAGR), doubling by 2028, the industry bodies said. Sources said the Bill could spell the end of “real money gaming platforms,” that have stakes in the sponsorship market of Indian sports, most significantly cricket.
But the multi-billion dollar fantasy gaming industry comprising companies that have spent big money in sponsorship of cricket might see a marked dip in their revenues.
Endorsements by top cricketers and film stars have incited interest in real money gaming apps such as fantasy sports betting games offered by Dream11, Games24X7, and Mobile Premier League. Cricket is one sport which has seen a huge influx of real money gaming with Indian team’s title sponsor being Dream 11. My11Circle is the official fantasy sports partner of the money-spinning Indian Premier League. Dream11 brought the Indian team’s title rights for about USD 44 million (Rs 358 crore approx). My11Circle brought IPL fantasy gaming rights for a fee of Rs 625 crore for five years (Rs 125 crore approx annually). Add to this the country’s top cricketers — former as well as current — have hefty personal endorsement deals with various real money gaming platforms.
And as a chain reaction, it could also affect the sports sponsorship market, including individual players’ sponsorship and franchise-based domestic leagues of disciplines like kabaddi and football.
The bill proposes to promote eSports and online social gaming while banning money gaming in any form. Meanwhile, industry bodies representing real money game players — India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) — in a letter to Home Minister Amit Shah raised concerns over the bill, saying it would kill the job-creating industry.
The Online gaming regulation bill looks to create a regulatory body that will look after four diverse segments — Esports, educational gaming, social and casual gaming and real money gaming.
According to the source, the Governmenthas realised that online real money gaming is a major problem for society and chose to forego revenue loss in preference to people’s welfare. “There is a rough estimate that 45 crore people lose money every year. The total impact of the loss is estimated to be tentatively around Rs 20,000 crore,” the source added.
“Online gaming involving money has become a major problem for society. Every Parliamentarian has raised concerns about its ill effects. Between revenue from one-third of the industry segment and society welfare, the Governmenthas chosen society welfare,” the source said.
According to the source, actions against entities involved in money gaming under the bill will be mainly taken by State governments.
Once the legislation is passed by both Houses of Parliament, offering or facilitating online money gaming will be punishable by imprisonment of up to 3 years and/or a fine of up to Rs 1 crore. Advertising of money games can attract imprisonment up to two years and/or a fine up to Rs 50 lakh. Facilitating financial transactions related to money games can lead to imprisonment of up to three years and/or a fine of up to Rs 1 crore. Repeat offences attract enhanced penalties, including 3-5 years’ imprisonment and fines up to Rs 2 crore. Importantly, offences under key sections are sought to be made cognisable and non-bailable.
Several online real money gaming platforms masquerade themselves as a “game of skills” to differentiate themselves from gambling or betting, the source said. “Those who play the games are victims. They will not be punished as per the bill, but there will be action on those who provide real money gaming platforms, facilitate transaction services, etc,” the source said. The Governmenthas been making efforts for the last three and a half years, which were being bypassed by the real money gaming players, the source added. “The Governmenttried to check it through GST, but it was being bypassed. There was a proposal for a regulatory body, but it was impacted by a conflict of interest. The provisions under the bill were taken after several complaints were received from the public and their representatives,” the source said.
As per “PROHIBITIONS” clause in the Bill: “No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service. “No bank, financial institution, or any other person facilitating financial transactions or authorisation of funds shall engage in, permit, aid, abet, induce or otherwise facilitate any transaction or authorisation of funds towards payment for any online money gaming service.” The “OFFENCES AND PENALTIES” clause clearly terms real money gaming as a criminal offence which could lead to jail and humongous fine for the service provider.
Clause 9. (1) reads “Any person who offers online money gaming service in contravention of section 5 shall be punished with imprisonment for a term which may extend to three years or with fine which may extend to one crore rupees or with both. Clause 9. (2) reads: “Any person who makes or causes to make advertisement in any media, in contravention of section 6, shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to fifty lakh rupees or with both.