India bans cash-based online games, apps face closure

BENGALURU: India’s parliament on Thursday passed a bill to ban online games played with money in a move that threatens the survival of the popular fantasy gaming sector, after Prime Minister Narendra Modi’s government flagged the high risk of financial harm.

The sudden ban has shocked an industry backed by venture capital firms like Tiger Global and Peak XV Partners and which was set to be worth $3.6 billion in India by 2029.

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

🎮 The #OnlineGamingBill2025 brings clear rules for the digital world — no misleading promises, no family distress, no security risks.@GoI_MeitY @MIB_India #DigitalIndia pic.twitter.com/Rzyduvo7Ok

— Ministry of Electronics & IT (@GoI_MeitY) August 20, 2025

The bill prohibits “harmful” online money gaming services, advertisements and financial transactions related to them, with the government also citing the psychological 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 Thursday.

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

Users to approach supreme court

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.

According to BJP and Modi sarkar Fantasy cricket is more dangerous than Tobacco and alcohol.
Fcuk BJP
True dictatorship. Only supreme court is the last option now #OnlineGamingBill2025 #SupportFantasy #Dream11 pic.twitter.com/iCRsDop0SR

— Devendra 🇮🇳 (@Devendra786s) August 21, 2025

Endorsements by top Indian cricketers and other marketing efforts have boosted the appeal of apps such as 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.

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Dream11’s app on Thursday showed it cost as little as 29 rupees (33 cents) 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 ($3,438).

Can’t see any RCB fans here 👀 Guess they’re all busy partying 🥳🥳🥳#Dream11 #RCBvPBKS #RCB pic.twitter.com/r5HW4bl4bt

— Dream11 (@Dream11) June 3, 2025

Dream11 commands a valuation of $8 billion while Mobile Premier League is valued at $2.3 billion, PitchBook data shows. Other popular gaming apps in India include Games24X7, which offers card games like rummy and poker, Zupee and WinZO.

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.