India’s government to propose blanket ban on real-money gaming

Summary

Real-money gaming companies are reeling as India moves to propose a blanket ban on their operations under a new legislation. The Indian government plans to prohibit real-money games — whether based on skill or chance — under its proposed online gaming regulation, per a draft seen by TechCrunch, which was also verified by three sources, including one consultant with the Indian IT ministry and two people working closely with the Indian government and real-money gaming companies. Proposed to be called The Promotion and Regulation of Online Gaming Act, 2025, the legislation would restrict online games involving real-money stakes and outlaw both their advertisements and financial transactions. “No bank, financial institution, or any other person facilitating financial transactions or authorization of funds shall engage in, permit, aid, abet, induce, or otherwise facilitate any transaction or authorization of funds towards payment for any online money gaming service,” the draft said. Real-money gaming has been the biggest revenue driver for India’s online gaming industry, which generated $3.8 billion in revenue in the financial year 2023–24 — a 23% increase year-over-year, per a recent report by gaming-focused VC firm Lumikai. Real-money gaming alone accounted for $2.4 billion of that total, the firm said. However, the sector has come under growing scrutiny amid public concerns over incidents of harm — including cases where individuals reportedly died by suicide after losing large sums of money in games. Industry stakeholders largely attribute these incidents to offshore betting and gambling apps, which continue to operate — and even expand — despite repeated claims by federal and state authorities of enforcement actions such as website blocks and account freezes. In 2023, the Indian government imposed a 28% tax on online gaming to curb real-money play — a move the industry called “catastrophic” and “unconstitutional.” Top investors, including Tiger Global and Kotak, urge...