India’s planned ban on real-money online gambling has sent shock waves through a billion-dollar industry and prompted a fantasy sports giant to pull its sponsorship of national cricket. Some observers believe the government’s move is counterproductive and will simply grow the illegal underground market.
On 19 August, lawmakers in the lower house of parliament, or Lok Sabha, introduced the Promotion and Regulation of Online Gaming Bill (2025). Two days later, virtually without consultation, the upper house, or Rajya Sabha, approved the bill. Indian President Droupadi Murmu must also sign the legislation for it to become law, but that step is assumed as he has already blessed the plan.
The bill prohibits gambling websites and apps from offering games “played by a user paying fees or depositing money or other stakes” with the hope of a cash win.
Bill supporters pointed to the risks associated with online gambling, including addiction, mental health issues and debt. They decried the “unchecked expansion” of the industry and expressed concern about “financial fraud, money laundering … and, in some cases, the financing of terrorism”.
“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 told parliament last Thursday.
Ban could fuel illegal iGaming
Critics say the ban will not eliminate the risks, but simply move the industry underground, where gambling is unregulated and fewer player protections exist.
In a 20 August blog post, gaming law firm Segev LLC wrote that the law, while “framed as a progressive step, in fact moves against the current global tide” of licensure and regulation, a model that includes responsible gaming initiatives and other consumer protections.
“A blanket prohibition … sidelines proven regulatory models that channel demand into transparent, well‑supervised markets that protect players and generate tax revenue,” Segev stated. “Instead, it risks driving activity underground, where consumer harm is harder to prevent and oversight is minimal.”
The pending ban has also rocked the international sports world. In the immediate aftermath of its passage, iGaming provider Dream11 yanked its sponsorship of the Board of Control for Cricket in India, which oversees the nation’s most popular sport. As a result, Team India has no sponsor for the Asia Cup, coming 9-28 September to Abu Dhabi. The BCCI is seeking new sponsors.
Global Data Sport also blamed Dream11’s exit for the suspension last week of the European Cricket League.
Ban could mean loss of jobs, investment
A joint statement from the All India Gaming Federation, the eGaming Federation and the Federation of Indian Fantasy Sports called the ban a potential “death knell” for a multibillion-dollar industry.
In a letter cited by India Times Now, the organisations appealed to lawmakers “on behalf of the millions of young entrepreneurs, developers and professionals working in India’s sunrise digital skill gaming sector”. They said the blanket prohibition imperils a “legitimate, job-creating industry and [will] cause serious harm to Indian users and citizens”.
Regulatory news site RegTechTimes also weighed in, saying the ban “creates a new risk. The very problem that the government wanted to stop – money laundering – may actually become worse. Offshore casinos will provide a channel for people to move money in and out of the country illegally. Some of this money could even come from criminal activities. Almost all of it will avoid banking scrutiny, creating a shadow economy that is invisible to regulators.”
The law, which also bans the advertising and promotion of real-money gambling, allows esports and online social games provided they involve no monetary stakes.
The fallout continues from India’s measure to bar online gambling, which was speedily approved by lawmakers this month and awaits the president’s signature.