India’s Government To Propose Blanket Ban On Real-money Gaming

Real-money gaming companies are reeling arsenic India moves to propose a broad prohibition connected their operations nether a caller legislation.

The Indian authorities plans to prohibit real-money games — whether based connected accomplishment aliases chance — nether its projected online gaming regulation, per a draught seen by TechCrunch, which was besides verified by 3 sources, including 1 advisor pinch nan Indian IT ministry and 2 group moving intimately pinch nan Indian authorities and real-money gaming companies.

Proposed to beryllium called The Promotion and Regulation of Online Gaming Act, 2025, nan authorities would restrict online games involving real-money stakes and outlaw some their advertisements and financial transactions.

“No bank, financial institution, aliases immoderate different personification facilitating financial transactions aliases authorization of costs shall prosecute in, permit, aid, abet, induce, aliases different facilitate immoderate transaction aliases authorization of costs towards costs for immoderate online money gaming service,” nan draught said.

Real-money gaming has been nan biggest gross driver for India’s online gaming industry, which generated $3.8 cardinal successful gross successful nan financial twelvemonth 2023–24 — a 23% summation year-over-year, per a recent report by gaming-focused VC patient Lumikai. Real-money gaming unsocial accounted for $2.4 cardinal of that total, nan patient said.

However, nan assemblage has travel nether increasing scrutiny amid nationalist concerns complete incidents of harm — including cases wherever individuals reportedly died by suicide aft losing ample sums of money successful games. Industry stakeholders mostly property these incidents to offshore betting and gambling apps, which proceed to run — and even expand — contempt repeated claims by national and authorities authorities of enforcement actions specified arsenic website blocks and account freezes.

In 2023, nan Indian authorities imposed a 28% taxation connected online gaming to curb real-money play — a move nan manufacture called “catastrophic” and “unconstitutional.” Top investors, including Tiger Global and Kotak, urged Prime Minister Modi to reconsider, informing of $2.5 cardinal successful write-offs and 1 cardinal occupation losses. The taxation stayed, though companies person challenged its retrospective exertion successful nan Supreme Court. However, it could emergence to 40% nether caller rules, immoderate caller reports suggested.

The draught authorities states that real-money gaming companies could look imprisonment for up to 3 years, a good of up to ₹10 cardinal (approximately $115,000), aliases both. Similarly, celebrities promoting specified games connected immoderate media level could beryllium liable for up to 2 years of imprisonment aliases a good of ₹5 cardinal (around $57,000). The measure besides empowers nan Indian authorities to found a regulatory authority to oversee its implementation.

“Businesses will unopen if nan authorities comes into force,” nan laminitis of a starring Indian real-money gaming startup told TechCrunch, requesting anonymity arsenic nan draught is not nationalist yet.

Investors are arsenic concerned astir nan projected law, which is expected to beryllium tabled successful nan Indian parliament soon for debate.

“All unicorns successful this assemblage are going to beryllium importantly impacted owed to nan move if it comes true,” an investor successful Indian real-money gaming startups said, while not agreeing to beryllium quoted connected grounds arsenic nan connection has yet to beryllium released by nan Indian government.

Dream Sports, Games24x7, and WinZO are among India’s apical real-money gaming startups. Collectively, they person raised billions of dollars and make important gross from millions of users. India has nan highest number of real-money gaming startups globally, per Tracxn, followed by nan U.S. and nan UK.

While galore of these companies besides connection non-monetized games, 1 laminitis told TechCrunch that real-money gaming accounts for complete 85% of their full revenue. They did not remark connected nan grounds arsenic nan draught is not public, but agreed to stock their thoughts anonymously.

Likewise, immoderate startups person explored going extracurricular India to prolong their business amid regulatory challenges successful nan country. That has besides not yet been fruitful for them, arsenic they presently make almost 100% of their revenues from India alone, nan laminitis quoted supra said.

This is not nan first clip New Delhi has looked to modulate real-money gaming. In 2023, nan Indian authorities amended nan Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, to curb “user harm” associated pinch real-money games. It projected nan creation of self-regulatory bodies to o.k. morganatic games while restricting forbidden betting and gambling. However, nan self-regulation exemplary faltered owed to conflicts among manufacture stakeholders complete enforcement and standards.

Local reports connected Tuesday suggested that India’s Cabinet had cleared nan projected bill for its preamble successful nan little location of parliament arsenic early arsenic Wednesday. However, nan Indian authorities did not corroborate nan development.

The Indian IT ministry did not respond to a petition for comments.