The Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025, on Wednesday, despite protests from the Opposition. This legislation aims to foster and regulate the online gaming industry, eliciting mixed reactions—pleasing the sports sector but causing concern in the multi-billion-dollar real money gaming arena. The House was adjourned until Thursday following raucous protests, similarly, the Rajya Sabha was suspended until tomorrow. In spite of the disruptions, the Bill was approved, marking a significant moment for one of India’s fastest-growing sectors.
The proposed law calls for the establishment of a central regulatory authority to supervise four major categories: esports, educational games, social gaming, and real money gaming. Among these, real money gaming platforms, including poker and fantasy sports, stand to face the toughest restrictions. The Bill’s “Prohibitions” clause specifies: “No individual shall offer, assist, encourage or otherwise participate in the provision of online money games and online money gaming services.” It also forbids banks and financial institutions from facilitating transactions for these platforms.
According to the “Offences and Penalties” clause, service providers who are found to offer real money games may face imprisonment of up to three years or fines reaching Rs 1 crore. Promoting such platforms could also result in jail sentences of up to two years or fines of Rs 50 lakh.
The government justified this action by citing extensive social and financial damages: “The rapid rise of online money games…that promise monetary returns based on user deposits has resulted in significant social, financial, psychological, and public health issues, especially among youth and economically vulnerable groups.”
Impact on Indian Sports
Cricket, which has experienced an increase in sponsorships from real money gaming companies, is likely to be most significantly impacted. Dream11, which sponsors the national team, invests around Rs 358 crore, while My11Circle has IPL fantasy rights valued at Rs 625 crore over a five-year period. Numerous prominent cricketers also have personal endorsement contracts with these firms.
Sports attorney Vidushpat Singhania commented: “Cricket is immensely popular in India, and there will still be plenty of sponsors for Indian cricket. Nevertheless, the market for personal sponsorships may decline due to this bill. Fan engagement may also suffer.” He noted that fantasy apps might transition to subscription-based models, but overall revenues are expected to drop.
Advancement for Esports
Conversely, the esports community views the Bill as a significant advancement. “The government’s commitment to acknowledge and promote esports…is a positive development towards cultivating a structured and globally competitive environment,” said Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, in an interview with PTI.
With esports set for its Olympic debut in 2027, this legislation could legitimize the sector, heralding a new chapter for gaming in India.
