Anil Rachamalla @ End Now Foundation
India’s booming online gaming industry, once hailed as a ₹27,000 crore GST revenue goldmine, faces a seismic shift with the implementation of the Promotion and Regulation of Online Gaming Act, 2025. The new law, set to ban real-money online games nationwide, targets gambling and betting platforms while affecting other gaming sectors. As the industry mourns lost revenue, the Union government stands firm, citing rising cyber fraud, addiction, and socio-economic harm infiltrating Indian homes.
How online betting hooked a nation
Real-money gaming platforms thrived on an addictive, opaque business model. Users signed up with minimal or no KYC verification, lured by lucrative first-time bonuses via UPI, credit cards, or cryptocurrency. Games like poker, rummy, fantasy cricket, and slot machines promised big rewards, but outcomes were often dictated by algorithms or manipulated odds. Platforms charged hidden ‘entry fees’, and cashing out winnings was a nightmare, plagued by delays, hidden charges, and dubious ‘account violations’.
Why the ban?
The Promotion and Regulation of Online Gaming Act is the Union government’s response to a growing crisis:
– Addiction Crisis: Reports link online gaming to depression, financial ruin, and suicides among youth and daily wage earners.
– Predatory Design: Gamification mechanics exploit user psychology to fuel compulsive behavior.
– Criminal Risks: Platforms have been flagged for money laundering, hawala, and potential terror financing.
– Patchy Bans: Partial bans in states like Tamil Nadu and Telangana since 2023 lacked uniform enforcement, necessitating a nationwide response.
Policy shift: From chaos to control
Before 2025, the legal landscape was a mess. State-level bans varied, courts often labeled games as ‘skill-based’ to exempt fantasy leagues, and outdated laws like the Public Gambling Act, 1867 couldn’t tackle digital fraud. The new law changes everything:
– Total Ban: All real-money online games, skill or luck-based, are now illegal.
– National Oversight: The National Online Gaming Commission (NOGC) will enforce compliance and handle user complaints.
– Heavy Penalties: Platforms face ₹1-2 crore fines and up to 5 years in jail. Influencers and advertisers risk ₹50 lakh-₹1 crore fines and 3 years in prison. Banks and fintech firms enabling deposits are also liable.
Economic loss vs Ethical gain
The gaming industry warns of job losses and stifled innovation, lamenting the ₹27,000 crore GST revenue hit. But experts argue this pales against the societal toll—bankruptcies, broken families, and a generation trapped in addiction. By framing gaming as a public health and cybercrime issue, India prioritizes people over profits. Platforms breaching obscenity norms will also face legal action.
A new digital dawn
India’s bold ban marks a reset for the digital economy. “Entertainment without ethics is dangerous, and profit without protection is unsustainable,” said a government spokesperson. The Promotion and Regulation of Online Gaming Act not only curbs risks but paves the way for a safer, more accountable online ecosystem, proving India’s commitment to shielding its citizens from the dark side of digital gaming.
Anil Rachamalla
Founder of End Now Foundation, Internet Ethics & Digital Wellness Expert
End Now Foundation is India’s pioneering non-profit organization dedicated to promoting better internet ethics and digital well-being. With a core mission of advocating for digital safety, we collaborate across sectors to raise awareness and empower communities.
