Ashwini Vaishnaw says venture capitalists were aware of risks in online money gaming

• Rajya Sabha passes the Promotion and Regulation of Online Gaming Bill 2025; law pending President's assent
• Minister Ashwini Vaishnaw notes VCs were aware of risks in real-money gaming, emphasizing social and financial concerns, especially for youth and middle-class families
• Bill bans real-money online gaming but allows esports and social games, aiming to balance public safety with industry growth

India's Electronics and Information Technology Minister Ashwini Vaishnaw has stated that venture capital investors knew about the risks of real-money gaming, further stating that challenges from such platforms aren't specific to India. His comments followed the Rajya Sabha passage of the Promotion and Regulation of Online Gaming Bill 2025, which will become a law after getting the President's assent.

"Most VCs were aware that this was a space with problems", Vaishnaw says in an exclusive interview, alluding to the vast social and financial dangers of real-money gaming sites. He clarified that nations across the globe are dealing with identical issues. "This is not an India-specific issue. Everywhere globally, individuals are confronting these issues and attempting to come to terms with them", he added.

The Indian real-money gaming industry has seen substantial private equity and venture capital investments of approximately $2.5-3 billion from top investors like Tiger Global, Peak XV, Matrix Partners, Steadview, DST Global, and Alpha Wave Global. The sector has yielded three unicorns in the form of Dream11, MPL, and Games24x7.

Vaishnaw emphasized the government needs to prioritize the well-being of people, especially youth and middle-class families who are impacted by social and economic risks. "If there is a big social problem that is impacting youth and middle-class families, the government has to make a choice between people and industry", he stated.

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The new law prohibits all forms of internet money gaming and puts a limit on connected advertising and financial dealings. Nonetheless, it permits esports and online social games directly, which the government will actively support.

Experts and investors have pointed out that although the law is a significant change in regulation for the gaming industry, it weighs social interests against potential for legitimate, non-monetized gambling games. By addressing only real-money games, regulators aim to mitigate gambling-related harm without suppressing innovation in esports and social gaming, areas that still command substantial youth interest and investment.

Vaishnaw's remarks highlight the government's intention to shield citizens from the social and economic ills of real-money gaming while continuing to encourage the wider digital gaming industry. The Bill marks a shift towards tighter regulation in a sector that has witnessed explosive growth, elevated valuations, and increasing public scrutiny.

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