Lok Sabha clears sweeping bill banning real-money online games

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Lok Sabha on Wednesday passed a bill imposing a blanket ban on real-money games nationwide while permitting esports and casual gaming without monetary stakes.

The Promotion and Regulation of Online Gaming Bill, 2025, targets an industry valued at about Rs 2 trillion (USD 23 billion), with revenues of Rs 310 billion (USD 3.6 billion) and annual tax contributions of ₹200 billion (USD 2.29 billion).

Industry bodies project a 28 per cent compound annual growth rate that could have doubled the sector's size by 2028.

Violators face up to three years' imprisonment, fines of up to Rs 10 million (USD 115,000), or both. Celebrities endorsing such platforms could be jailed for two years or fined Rs 5 million (USD 57,000).

The ban impacts leading startups including Dream Sports, MPL, WinZO, Gameskraft, Nazara Technologies and Zupee, alongside their investors.

Shares of publicly listed Nazara Technologies fell nearly 13 per cent on Wednesday following the bill's passage.

Ahead of the vote, three industry groups — the Federation of Indian Fantasy Sports, All India Gaming Federation, and E-Gaming Federation — wrote to Prime Minister Narendra Modi, warning the bill would dismantle domestic platforms while benefiting illegal offshore operators.

They also cautioned it could lead to the loss of 200,000 jobs and closure of 400 companies.

The legislation still requires approval in the Rajya Sabha and presidential assent before becoming law.