Parliament clears online gaming bill: What lies ahead of $3.8 bn money-based games, ad industry
With the passage of the Online Gaming Bill, 2025, India has drawn a red line between “harmless” esports and “harmful” money-driven games. The ban could reshape not only the gaming industry but also aligned sports, advertisement economy.
- Aug 21, 2025,
- Updated Aug 21, 2025 6:55 PM IST
The Rajya Sabha has passed the 'Promotion and Regulation of Online Gaming Bill 2025', marking a pivotal moment for India's burgeoning online gaming sector. The bill, introduced by Union Minister Ashwini Vaishnaw, enacts a comprehensive ban on all money-based online games, including fantasy sports, poker, and rummy. The legislation differentiates between financial gaming, deemed "harmful," and eSports or social gaming, which will continue to receive support. This legislative action is expected to profoundly affect an industry valued at $3.8 billion, which has seen rapid growth and attracted substantial international investment over the last decade. Violations of the new law can result in jail terms of up to three years or fines amounting to Rs 1 crore.
The fallout has been immediate, triggering turmoil across the sector. Flagship platforms such as Dream11, Games24x7, and Mobile Premier League now face an existential crisis. Analysts warn that the impact will be severe, given the industry’s position as one of India’s largest digital advertisers. With the ban, advertising spends of more than Rs 17,000 crore annually are expected to evaporate overnight. The shockwaves extend to marquee events like the Indian Premier League, where fantasy sports firms have long been among the biggest contributors to ad revenues.
Ripple effect
Economic repercussions of the ban are expected to ripple through the broader digital economy. The industry has been a key driver of job creation, yielding over 1.5 million direct and indirect positions and securing more than $2.5 billion in venture capital in recent years. "This bill risks destabilising one of India's fastest-growing ecosystems," said Ananay Jain, Partner, Grant Thornton Bharat, adding that "Instead of protecting consumers, it could push players to underground markets, while investors may divert funds to friendlier jurisdictions."
Opposition voices have raised concerns about the effectiveness of blanket bans, suggesting they could lead to unregulated betting markets. Abhay Raj Mishra, President & National Convenor, PRAHAR (Public Response Against Helplessness and Action for Addressal), highlighted, "In Telangana, despite an eight-year ban, players still use VPNs, Telegram groups, and unofficial apps. A prohibition only drives the problem underground." Mishra further noted that the bill favours foreign-dominated casual gaming and esports at the expense of local fantasy sports companies.
The bill has also placed celebrity endorsements under scrutiny. Prominent figures such as Ranbir Kapoor, Aamir Khan, and MS Dhoni, who have endorsed various gaming platforms, are now reviewing their affiliations. "We have advised our clients to pause or take down promotional content," stated a Mumbai-based talent manager. The enforcement extends beyond endorsements; financial institutions are barred from processing transactions linked to these games, severely affecting the operational model of affected companies.
Market strategies
Some insiders attribute the downfall of real-money gaming to its own aggressive marketing strategies. Deepak Shenoy from Capitalminds commented, "These companies went overboard with endorsements, sponsoring big-ticket events, and promising high returns. It created an impression that they were legitimising gambling. Cigarettes and alcohol cannot advertise directly; perhaps money games should have been regulated under similar principles. Instead, a ban has come down hard." The removal of such advertising could severely impact associated sectors, including media and sports.
The bill now awaits Presidential assent, although its passage is anticipated to face little resistance. Industry insiders speculate that India's largest gaming firms may need to either shut down or pivot to alternative models like esports and casual gaming. The future remains uncertain as stakeholders assess the long-term effects of the ban, including potential shifts in advertising revenue streams.
In conclusion, the passage of the Online Gaming Bill, 2025 represents a significant juncture for India's digital economy. Its implications extend beyond gaming, potentially altering the landscape of advertising, investment, and digital innovation in the country. The industry's transformation will likely prompt strategic realignments as it grapples with regulatory changes.
The Rajya Sabha has passed the 'Promotion and Regulation of Online Gaming Bill 2025', marking a pivotal moment for India's burgeoning online gaming sector. The bill, introduced by Union Minister Ashwini Vaishnaw, enacts a comprehensive ban on all money-based online games, including fantasy sports, poker, and rummy. The legislation differentiates between financial gaming, deemed "harmful," and eSports or social gaming, which will continue to receive support. This legislative action is expected to profoundly affect an industry valued at $3.8 billion, which has seen rapid growth and attracted substantial international investment over the last decade. Violations of the new law can result in jail terms of up to three years or fines amounting to Rs 1 crore.
The fallout has been immediate, triggering turmoil across the sector. Flagship platforms such as Dream11, Games24x7, and Mobile Premier League now face an existential crisis. Analysts warn that the impact will be severe, given the industry’s position as one of India’s largest digital advertisers. With the ban, advertising spends of more than Rs 17,000 crore annually are expected to evaporate overnight. The shockwaves extend to marquee events like the Indian Premier League, where fantasy sports firms have long been among the biggest contributors to ad revenues.
Ripple effect
Economic repercussions of the ban are expected to ripple through the broader digital economy. The industry has been a key driver of job creation, yielding over 1.5 million direct and indirect positions and securing more than $2.5 billion in venture capital in recent years. "This bill risks destabilising one of India's fastest-growing ecosystems," said Ananay Jain, Partner, Grant Thornton Bharat, adding that "Instead of protecting consumers, it could push players to underground markets, while investors may divert funds to friendlier jurisdictions."
Opposition voices have raised concerns about the effectiveness of blanket bans, suggesting they could lead to unregulated betting markets. Abhay Raj Mishra, President & National Convenor, PRAHAR (Public Response Against Helplessness and Action for Addressal), highlighted, "In Telangana, despite an eight-year ban, players still use VPNs, Telegram groups, and unofficial apps. A prohibition only drives the problem underground." Mishra further noted that the bill favours foreign-dominated casual gaming and esports at the expense of local fantasy sports companies.
The bill has also placed celebrity endorsements under scrutiny. Prominent figures such as Ranbir Kapoor, Aamir Khan, and MS Dhoni, who have endorsed various gaming platforms, are now reviewing their affiliations. "We have advised our clients to pause or take down promotional content," stated a Mumbai-based talent manager. The enforcement extends beyond endorsements; financial institutions are barred from processing transactions linked to these games, severely affecting the operational model of affected companies.
Market strategies
Some insiders attribute the downfall of real-money gaming to its own aggressive marketing strategies. Deepak Shenoy from Capitalminds commented, "These companies went overboard with endorsements, sponsoring big-ticket events, and promising high returns. It created an impression that they were legitimising gambling. Cigarettes and alcohol cannot advertise directly; perhaps money games should have been regulated under similar principles. Instead, a ban has come down hard." The removal of such advertising could severely impact associated sectors, including media and sports.
The bill now awaits Presidential assent, although its passage is anticipated to face little resistance. Industry insiders speculate that India's largest gaming firms may need to either shut down or pivot to alternative models like esports and casual gaming. The future remains uncertain as stakeholders assess the long-term effects of the ban, including potential shifts in advertising revenue streams.
In conclusion, the passage of the Online Gaming Bill, 2025 represents a significant juncture for India's digital economy. Its implications extend beyond gaming, potentially altering the landscape of advertising, investment, and digital innovation in the country. The industry's transformation will likely prompt strategic realignments as it grapples with regulatory changes.