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India Pulls the Plug: Government Bans Real-Money Online Gaming in Swift Move
In a swift and decisive move, the Indian government has passed a new law banning real-money online games like fantasy sports and poker, aiming to curb addiction and financial harm, while promoting e-sports.
In a lightning-fast legislative move, the Indian government has passed a new law that effectively bans online real-money gaming (RMG), dealing a massive blow to popular platforms like Dream11, Mobile Premier League (MPL), and PokerBaazi.
The Promotion and Regulation of Online Gaming Bill, 2025, was passed by the Rajya Sabha on Thursday, August 21. It had already been cleared by the Union Cabinet and the Lok Sabha. The entire process, from cabinet to parliament, took less than 72 hours, showing the government's urgency on this issue.
The bill now only needs the President's signature to become an Act that will change the online gaming landscape in India.
Why the Sudden Ban?
Union IT Minister Mr.Ashwini Vaishnaw, while presenting the bill, defended the quick action. He compared the "malpractices" in online money games to societal problems like chit funds.
"It is the responsibility of the government and Parliament to take strict action against such malpractices," Vaishnaw stated. "Problems [due to online money games] have led to several families being destroyed."
This move is a sharp U-turn from the government's previous approach of trying to create a self-regulatory model for the industry.
Minister Vaishnaw also clarified that this law would not face delays in implementation, unlike other digital laws like the Data Protection Act. A "short notification" will be issued to bring the ban into force immediately.
What Does This Mean for Gamers and Companies?
- For Companies: The main revenue source for giant gaming firms—pay-to-play, stakes-based games—will be "crushed overnight." The industry has appealed to Home Minister Amit Shah for relief but has not yet made a major public statement.
- For Gamers: Players will no longer be able to play games like fantasy sports or online poker where they pay an entry fee to win real money.
- For Investors:The stock market reacted instantly. Shares of Nazara Technologies, which has a significant stake in PokerBaazi, fell 2% on Thursday and are down 15% since the bill was introduced. Casino firm Delta Corp also saw its shares drop over 3%.
But What About E-Sports? The Silver Lining
The bill isn't just about banning games. The government says it also aims to promote e-sports (competitive video gaming) and online social games.
The Ministries of Youth Affairs and Sports and Information and Broadcasting will now take steps to encourage and grow the e-sports ecosystem in India. This suggests a clear government focus on skill-based competitive gaming rather than chance-based money games.
PM Modi Welcomes the Move
Prime Minister Shri Narendra Modi welcomed the bill's passage. On social media, he said, “This Bill... highlights our commitment towards making India a hub for gaming, innovation and creativity. It will encourage e-sports and online social games. At the same time, it will save our society from the harmful effects of online money games."
The Bottom Line
The Indian government has drawn a clear line in the sand. Its priority is to protect citizens from the potential financial risks and addiction of real-money gaming. While this is a major setback for a multi-billion dollar industry, it opens a new chapter for the promotion of e-sports as a legitimate sporting discipline in India.
The gaming world in India is about to change forever.
This Bill, passed by both Houses of Parliament, highlights our commitment towards making India a hub for gaming, innovation and creativity. It will encourage e-sports and online social games. At the same time, it will save our society from the harmful effects of online money… https://t.co/t1iUuH9JP1
— Narendra Modi (@narendramodi) August 21, 2025#OnlineGamingBan #RealMoneyGames #IndiaNews

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