Parliament Passes Bill to Outlaw Real Money Gaming Nationwide
By
siliconindia | Thursday, 21 August 2025, 10:22 Hrs
- Parliament bans all forms of real money online gaming in India.
- Banks barred from facilitating transactions for gaming platforms.
- Industry fears job losses and collapse of billion-dollar gaming market.
In a landmark move, Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, effectively banning all forms of real money online gaming across India. The Rajya Sabha cleared the Bill on Thursday without any debate, a day after it was approved in the Lok Sabha.
The legislation marks the government’s strongest stance yet against online gaming, citing rising concerns over addiction, financial fraud, money laundering, and even suicides linked to real money gaming platforms. The Bill not only prohibits the offering and playing of such games but also bans their advertisement, promotion, and sponsorships.
A major provision restricts banks and financial institutions from processing or facilitating transactions related to these games, effectively choking off financial channels for gaming operators. This will make it nearly impossible for companies in the sector to legally function in India.
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The move comes as a shock to the industry, which had anticipated stricter regulations but not a complete ban. Industry stakeholders were bracing for a potential 40% “sin tax” under the revised GST framework but now face what many are describing as a “death knell” for the sector. Several startups and global investors had heavily bet on India’s rapidly growing online gaming market, projected to reach $8.6 billion by 2027.
While the government argues the Bill prioritizes consumer safety and social well-being, critics warn of potential job losses, economic disruption, and the rise of unregulated black-market gaming platforms. The coming months will be crucial as both industry players and users adapt to this sweeping change in India’s digital entertainment landscape.
