Game Over for India RMG?

For iGaming players in India, the news was a stunner. On August 22, just two days after lawmakers introduced a bill to ban online real-money games (RMG), the measure became law. With minimal debate and virtually no stakeholder input, the 2025 Promotion and Regulation of Online Gaming Bill shut down a $4 billion industry in the world’s most populous, tech-forward nation.

Smrita Singh Chandra, former executive for fantasy sports platform Dream11, called the decision “deeply unjust.” In a LinkedIn post, he wrote, “Declaring a platform illegal after years of validation, taxation and judicial recognition isn’t just wrong, it is unethical.”

Mumbai-based gaming lawyer Jay Sayta lamented the “massive setback” for investors who pumped millions of dollars into the industry. By one estimate, India RMG contributed $1.4 billion a year in taxes and supported 200,000 jobs.

The potential was far greater. A pre-ban study from the Interactive Entertainment and Innovation Council and WinZO Games predicted the iGaming sector would generate $9.1 billion by 2029, with RMG contributing about 86 percent of total market share.

WinZO CEO Paavan Nanda predicted the industry would “unlock up to $63 billion in investor value by 2029,” create more than 2 million more jobs and, within a decade, boost India’s share of the world gaming economy from 1.1 percent to 20 percent.

“The potential is staggering,” says online gaming strategist Japneet Singh Sethi. “India has a massive mobile-first population with a deep-rooted sports culture and payments infrastructure. The fundamentals are strong, and that is why it has always been the biggest market for global investors.”

Gaming consultant Jaydeep Chakravartty, a member of India’s first and only gaming commission in Meghalaya, calls India “a near-perfect environment for a thriving RMG industry” thanks to its young, mobile-first population, a wealth of tech talent and “cultural comfort with competition and skill-based play.” Add in widespread smartphone penetration, 5G connectivity and easy digital transactions, and the market is a dreamscape for operators.

But for now, and until further notice, players and providers are out of luck.

Pick a Side

The ban covers all games where users pay money in hopes of making money. It prohibits banks and payment providers from processing RMG transactions. Offenders face fines and up to five years in jail.

Officials said the ban would protect citizens from “predatory gaming platforms that thrive on misleading promises of quick wealth.” Federal IT Minister Ashwini Vaishnaw said online money games have harmed some 450 million Indians and robbed them of 200 billion rupees ($2.25 billion). He said the pastime has caused financial ruin, depression and even suicide among some players, including children. The government also expressed concerns about money laundering and threats to national security.

Critics quickly fired back. Jaya Chaarhar, whose JCDC Sports runs Trade Fantasy Game, said the ban “defeats the very intent of consumer protection” by forcing players to seek out illegal, unlicensed operators.

So which side is right?

Maybe both. Sethi acknowledges the government’s “noble” intentions, but says the move is likely to backfire. “India has more than 750 million internet users, and the demand (for iGaming) is insanely high. The key question isn’t whether they’ll play—it’s where and under whose oversight.

“In the absence of regulated alternatives, they will simply migrate to less visible and riskier platforms.”

Chakravartty agrees it’s not just a black-or-white argument.

“On one side, the government’s rationale for banning or tightly regulating online gaming—particularly real-money games like rummy, poker or fantasy sports—is grounded in serious concerns: financial harm, addiction and mental health, and consumer protection. From this perspective, a ban looks like a safeguard—a blunt but immediate way to limit harm while the regulatory framework catches up.

“On the other hand, critics of the ban make strong arguments as well, saying it will drive the activity underground, out of reach of regulators. It will enrich illicit operators rather than the Indian government, and limit personal autonomy.”

In any case, he says, “Players will keep playing, even in the face of bans. Human behavior and past precedent both point in that direction.”

Collateral Damage

Sports, too, were hard-hit by the ban, as team sponsorships dried up virtually overnight. Anticipating a 95 percent revenue drop, fantasy sports platform Dream11 ended its $44 million sponsorship of the Board of Control for Cricket in India. India-facing iGaming and esports operator Mobile Premier League said it might cut 60 percent of its workforce.

“Cricket, football and kabaddi had found a major revenue ally in iGaming, with sponsorship money being used in the development of grassroots leagues,” says Sethi. “With the funding now gone, many smaller franchises might be under pressure.”

As Flutter closed its Junglee RMG operations, the company promised to “actively… encourage the restoration of the 70-year-old constitutional protection afforded to skill-based games… and continue to promote the benefits of fully regulated products.”

The change will affect media ad revenue as well as sports, notes Sethi. “Both industries will feel the financial pinch unless a new policy framework is introduced.”

Set up for a Comeback?

Nandan Kamath, lawyer and founder of the GoSports Foundation, told ABC Asia the ban is vulnerable to repeal. “Rarely have absolute restraints such as bans been upheld. The government may argue public health, social order and even national security. But courts will closely assess whether there are less restrictive alternatives,” Kamath said.

Sethi agrees that repercussions from the ban could set the stage for a comeback. “We’ve seen this pattern before in crypto and fintech. There were sharp regulatory clampdowns followed by the introduction of clear frameworks.”

While the pause has hurt momentum, he continues, “India is the biggest democracy in the world, and we’ve seen previous rulings where courts have favored state autonomy and skill-based gaming distinctions. It’s very much possible that legal challenges and policy dialogues will emerge, especially given the economic and employment implications.”

Multiple petitions have already been filed to challenge the law, whose hurried passage could render it unconstitutional. “The Supreme Court of India has stepped in, transferring all these petitions from the high courts to itself, making itself the forum for the constitutional challenge,” notes Chakravartty. “All of this suggests that there is at least a credible pathway for parts of the law—or its entire structure—to be struck down or modified.”

He’s not optimistic about a quick reversal, but in a statement following passage of the bill, Dream11 urged fans to “stay tuned.”

Finding Common Ground

If courts revise the ban into a “strong, well-regulated framework like the U.K.’s Gambling Commission or Malta’s Gaming Authority, India could still reclaim its position” as an iGaming superpower, says Chakravartty. “The world needs large, well-regulated gaming markets—and India has the consumer base and tech stack to do it right.”

In fact, he says, India could set the standard for responsible gaming, “pioneering ethical and tech-driven regulation—turning what looks like a retreat into a model of balance.”

If the prohibition stands, however, it “risks a ‘brain drain’ of gaming entrepreneurs and developers” from India to neighboring countries. “The UAE, Singapore and even Sri Lanka could capture that market instead, becoming the hubs India could have been.”

“The fundamentals are strong. That is why India has always been the biggest market for global investors.”

—Japneet Singh Sethi

While the RMG ban took effect immediately, the legislation was opened for consultation through the end of October. Attorney Ketan Joshi of New Delhi-based Maheshwari & Co. called the consultation “an important opportunity for comprehensive stakeholder engagement.” In an October 14 analysis, he recommended extending the consultation period even further, “creating structured dialogue mechanisms with industry participants, consumer groups and technology experts.”

Joshi, whose practice includes regulatory compliance, acknowledged the grave concerns of lawmakers who supported the ban. “The legislation emerged from pressing concerns about public health and safety, with reports of 47 suicides linked to gaming addiction in Tamil Nadu alone over five years. Additionally, investigations revealed that some gaming platforms were being used for terror financing, money laundering, and illegal messaging, effectively compromising national security.”

Ultimately, he wrote, the success of the Promotion and Regulation of Online Gaming Act “will be measured not only by its effectiveness in curbing harmful gaming practices but also by its ability to foster a sustainable, innovative and responsible gaming ecosystem that serves India’s broader digital economy objectives while protecting consumer welfare and national interests.”

Lessons of Prohibition

In 1919, driven by social reformers like the Women’s Temperance League, the United States government ratified the 18th Amendment to the Constitution, banning the production, transport and sale of alcoholic beverages.

Americans’ appetite for spirits was quenched for a time. But it roared back with the 1929 stock market crash, followed by the Great Depression. Without a legal market, organized crime willingly set up the next round. In the words of Al Capone, “Somebody had to throw some liquor on that thirst. Why not me?”

Ultimately, after 13 dry years, the experiment failed, and the 18th Amendment became the only one in U.S. history to ever be repealed.

For now in India, illegal operators undoubtedly will profit from the RMG ban, meanwhile paying no taxes, observing no regulations and offering no consumer safeguards. But the country may yet be an iGaming leader and standard-bearer for other jurisdictions, “if it embraces structured regulation rather than reactionary bans,” says Sethi. With education, effective AML/KYC enforcement and responsible gaming tools, digital India could be a safe place to play.

“India hasn’t forfeited its chance,” Sethi says. “In fact, with the right policy shift, it could set the right precedent for emerging markets. The smart money will stay watchful and likely re-enter when there is clarity.”