India passes bill banning money-based online games, app shutdowns loom

BENGALURU - India’s Parliament on Aug 21 passed a Bill to ban online games played with money in a move that threatens the survival of the popular fantasy gaming sector, after the government flagged the high risk of financial and psychological harm.

The sudden ban has shocked the industry, backed by venture capital firms like Tiger Global and Peak XV Partners and which was set to be worth US$3.6 billion (S$4.6 billion) in India by 2029.

India’s upper house of Parliament passed the

Promotion and Regulation of Online Gaming Bill 2025

after the lower house cleared it earlier this week with the support of lawmakers.

The president must sign the Bill into law which, although there is no set date, is considered a formality.

Executives fear imminent job losses and a complete shutdown of many app-based businesses which attracted billions from foreign investors.

The Bill prohibits “harmful” online money gaming services, advertisements and financial transactions related to them, with the government citing the psychological and financial harm they can cause.

“It is the duty of the government and the Parliament to take strict action against social evils, which keep erupting time and again,” federal IT minister Ashwini Vaishnaw said in Parliament on Aug 21.

Indian gaming groups are holding discussions with lawyers about approaching the Supreme Court to challenge the ban by citing a lack of consultation, the impact on the thriving industry, and how some games being banned like poker are skill-based and should be exempted, two gaming industry sources with direct knowledge of the matter said.

Endorsements by top Indian cricketers and other marketing efforts have boosted the appeal of, and investor interest in, gaming apps such as the popular fantasy cricket games operated by startups Dream11 and Mobile Premier League, where virtual cricket teams are created based on real players, earning points based on the runs, wickets and catches of an actual match.

Dream11’s app on Aug 21 showed it cost as little as 29 rupees (S$0.43) to create a team and join a “prize pool” which is then split among thousands of winners with a top payout of 300,000 rupees (S$4,430).

Dream11 commands a valuation of US$8 billion while Mobile Premier League is valued at US$2.5 billion, PitchBook data shows. Other popular gaming apps in India include Zupee and Games 24x7.

The new Bill states that anyone who offers money games after the law comes in force could face a jail term of up to three years and a fine. REUTERS