Parliament Passes Gaming Bill, Industry Stares at Massive Losses, Job Cuts

While aimed at curbing addiction and fraud, the legislation puts thousands of jobs at risk, threatens business closures, erodes tax revenues, and sends a chilling message to investors.

By PC Bureau

New Delhi, August 21, 2025 — Parliament today  passed the Promotion and Regulation of Online Gaming Bill, 2025, banning all real-money online gaming in India while creating a structured legal framework for e-sports and social games.

The Bill was introduced and swiftly passed in the Lok Sabha on Wednesday, August 20, in a move aimed at curbing addiction, fraud, and financial harm associated with online betting and money-gaming platforms. The legislation proposes a sweeping ban on such activities and mandates the creation of a central regulatory authority to oversee the sector and nurture safe forms of online gaming, including competitive e-sports and educational games. It also includes provisions to shield vulnerable populations, particularly youth, from the adverse impacts of addictive gameplay.

On Thursday, August 21, the Rajya Sabha passed the Bill through a voice vote, Union Minister Ashwini Vaishnaw defended the legislation, likening real-money gaming addiction to drug abuse, pointing to its corrosive impact on families and national interests.

READ: Assam Rifles Shuts Up Biren Singh: All 42,000 Myanmar Entrants Documented, Not Illegal

The Bill’s passage signals a major policy shift, extending prohibitions to advertisements for money-based games and barring financial institutions from supporting such platforms. It also brings in stringent punishments: imprisonment up to three years and/or a fine of ₹1 crore for offenders, with steeper penalties for repeat violations.

Scope & Impact of the Legislation

• Legal Recognition & Regulation: e-sports and social/educational games will be promoted under government oversight through the creation of the Online Gaming Authority.
• Banned Activities: All forms of real-money gaming—including those based on skill or chance—are prohibited, along with their advertising and monetary transactions.
• Economic Risks: The real-money gaming industry, valued at approximately $3.6–3.8 billion, stands at risk. Companies like Dream11 (valued at $8 billion) and MPL (valued at $2.5 billion) now face an uncertain future. Analysts warn of potential job losses, app shutdowns, and financial instability triggered by plummeting investor confidence
• Financial Fallout: Highlighting the monetary toll, Vaishnaw warned that nearly ₹20,000 crore is lost annually by an estimated 45 crore Indians falling prey to real-money gaming.A Turning Point for India’s Digital Gaming Ecosystem

• The Promotion and Regulation of Online Gaming Bill, 2025 passed by the Parliament.

  The Bill takes a balanced approach – promoting what’s good, prohibiting what’s harmful for middle-class and youth.

  Here’s a quick explainer 👇🧵 pic.twitter.com/q4Pthsrb2V

  — Ashwini Vaishnaw (@AshwiniVaishnaw) August 21, 2025

READ: Tribal Bodies Up in Arms in Assam Over Land and Identity

While hailed by proponents as a bold step in safeguarding public welfare and protecting youth, the Bill has sparked fierce backlash from industry insiders and civil liberties advocates. Critics argue the ban fails to distinguish between harmful gambling and legitimate skill-based gaming, arguing it may drive the market underground and hamper the growth of India’s gaming innovation sector.

#WATCH | Union Minister for @GoI_MeitY and @MIB_India Ashwini Vaishnaw speaks to the media after passing of the Promotion and Regulation of Online Gaming Bill, 2025 in Parliament@AshwiniVaishnaw #OnlineGamingBill2025 #StopGamingSuicides pic.twitter.com/LZQ3AF88DM

— All India Radio News (@airnewsalerts) August 21, 2025

Ban Triggers Industry Shockwaves

The legislation’s approval triggered an immediate crunch in the sector. Executives warn the bill may wipe out:

• Over 200,000 jobs from affected gaming firms
• Closure of more than 400 companies
• Shutdown of domestic and franchise-based sports leagues dependent on game sponsorships
• A staggering loss in advertising and broadcast revenue—estimated at 30–40% for some sports bodies

Revenue Losses and Investor Retreat

The government’s decision to clamp down on real-money gaming is poised to inflict considerable fiscal damage. Projections include:

Penalties & Enforcement

The bill brings stringent penalties for violations:

• Unlicensed operations: Up to 3 years imprisonment or ₹1 crore fine
• Advertisers (including influencers): Up to 2 years imprisonment or ₹50 lakh fine
• Repeat offences: Jail terms of 3–5 years and fines up to ₹2 crore
• Banks and payment providers face prohibition from facilitating related transactions

Government Rationale & Industry Concerns

Union Minister Ashwini Vaishnaw defended the legislation, describing real-money gaming as a “public health risk” akin to drug addiction, citing its role in financial ruin, money laundering, and even terror financing. He highlighted that an estimated 45 crore Indians lose nearly ₹20,000 crore annually to such platforms.

However, industry representatives urge the government to adopt a more nuanced approach. They warn that the blanket ban:

• Stifles regulated, skill-based gaming ecosystems, including e-sports
• Encourages migration to unregulated offshore platforms
• Undermines India’s potential as a global gaming innovation hub
• Support for Esports and Social Gaming

Despite the ban, the bill offers a lifeline to non-monetised segments:

• Official recognition and promotion of e-sports as a category of competitive sport
• Establishment of a National Online Gaming Authority to license legitimate platforms, regulate social and educational games, and issue security guidelines
• Restrictions only focus on money-based games, preserving scope for creative, skills-driven, and recreational digital entertainment.