India has enacted one of the world’s strictest online gaming laws, banning all forms of real-money digital games, including fantasy sports and betting platforms. The government claims that the move is necessary to curb rapidly rising addiction, financial losses, and fraud. Potential links to money laundering and terror financing concerns have also been cited as reasons behind the law.
The Promotion and Regulation of Online Gaming Act, 2025, passed by both houses of Parliament earlier this week and signed into law by President Droupadi Murmu on August 22nd, has had an immediate effect on the $20-billion industry.
What The New Law Does
In essence, the new law forbids online games “played with money”. The sweeping motion includes various online activities, including fantasy sports, rummy, poker, and any app where users bet or win cash. The lawmakers framed it as a public-health and consumer-protection measure. The penalties include criminal liability for not only operators, but promoters as well, effectively banning even gambling-related commercials.
The law also establishes standards for a safer digital environment, leaving a little wiggle room for non-monetary, skill-based, or purely casual gaming to continue. However, the line separating these activities from gambling is still very blurry, and it is up to the courts to decide where it is.
Market Fallout
The market reaction was instant. MPL (Mobile Premier League), one of India’s largest gaming companies, suspended all money-based titles in India “effective immediately,” while WinZO said it is pulling money games following the President’s signature. Many big-name casinos, including the crypto ones, are also suspending operations in India.
The situation is in sharp contrast to what it was just months ago, when online casinos were booming and experts were predicting that India’s market could reach $3–4 billion by the end of the decade. Now, as CCN states, all plans for expansions are scrapped, and companies are planning their exit strategies.
Enforcement Heats Up
Hopes that the government was just acting tough and that the new law would remain just a piece of paper were quickly dispelled by the Enforcement Directorate (ED). Just days after the act passed, investigators launched raids across 30 locations in six cities, targeting alleged illegal betting and money-laundering networks linked to Karnataka MLA K. C. Veerendra, including five casinos in Goa.
The MLA was arrested, and cash, precious metals, and vehicles were seized in these massive raids. According to the officials, heMLA was arrested under money laundering charges.
The signal that the government is serious about the implementation of the new law could not be clearer. Various players involved in the now-banned activities are taking notice, winding down their operations in full compliance.
Legal Battles Ahead
A number of constitutional challenges arguing disproportionate restrictions on trade and speech, as well as claiming that skill-based games can’t be considered gambling, have already been announced. The latter argument has already been recogniszed by several Indian courts in earlier cases. However, the proponents of the new law claim that its clear agenda supersedes all earlier jurisprudence
It is obvious that legal battles will be fought for years to come over the controversial law, but in the mean time, it stands and it is being heavily enforced.
Global Effects
India’s hard line is expected to have a significant effect on the rest of the region, if not the world. Countries in South and Southeast Asia, many of which face the same public health issues as India, can easily copy the Promotion and Regulation of Online Gaming Act and enforce a similar ban. Lawmakers and policy makers from Bangladesh to the Philippines now have a template near to home to consider and possibly adapt to their needs.
Conclusion
India’s sweeping ban on real-money online gaming marks a watershed moment for one of the world’s fastest-growing digital entertainment markets. Outlawing cash plays across the board will have significant effects on the development of such markets, and not just in India. Although some operators are pinning their hopes on legal challenges to India’s courts, there is nothing they can do in the short term but comply with the law.
