India Just Outlawed Real-Money Online Gaming

Hello,

I was just watching news today after playing Poker online and saw that Government has passed this ( according to me idiotic ) bill

What exactly did Parliament pass?

• The Promotion and Regulation of Online Gaming Act, 2025 (formerly the Bill) was cleared by both Houses; the President’s assent has been received. It becomes operative from a date the Centre notifies in the Gazette.

• The law creates a national framework: ban money games, promote e-sports & social games, and set up an Authority for recognition/registration and sector oversight.

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The ban, in plain English

• “Online money game” covers any online game (skill, chance, or both) where users pay fees/deposit money or other stakes to win monetary/other enrichment. That definition explicitly removes the old “skill vs chance” debate. Fantasy sports, poker, rummy, etc., fall in scope.

• No ads. Any advertisement that directly/indirectly promotes online money games is prohibited. Influencers and promoters are in scope.

• No payments. Banks, UPI, wallets, and any facilitator are barred from authorising transactions toward online money gaming services.

• Blocking powers. Content and services can be blocked under the IT Act if platforms don’t comply.

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What is still allowed?

• E-sports (competitive, rules-governed, skill-based tournaments) — recognised under sports governance and registered with the Authority — are explicitly supported. Prize money for performance is permitted; no betting/stakes allowed.

• “Online social games” (no staking, no winnings) are permitted. Subscription/one-time access fees are allowed if they’re not stakes or wagers.

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Penalties & enforcement (why platforms are switching off)

• Offering money-gaming services: up to 3 years’ imprisonment and/or ₹1 crore fine; higher for repeat offences (3–5 years and ₹1–2 crore).
• Advertising: up to 2 years and/or ₹50 lakh; repeat offences escalate.
• Facilitating payments: up to 3 years and/or ₹1 crore; escalates on repeat.
• Cognizable & non-bailable for core offences; company directors/officers can be held liable.

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Why did the government pass this bill?

Ministers flagged addiction, social harm, money-laundering, and even terror-finance risks, saying tens of crores of users were affected and large sums lost — and pitched the move as a public-health and financial-integrity response that also grows e-sports/social gaming.

Al Jazeera’s report adds that Parliament moved after figures showing companies had stripped ~$2.3B annually from ~450M people; the ban sweeps up platforms for card games, poker, and fantasy sports.

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Affected Apps

• Leading apps (e.g., Dream11, PokerBaazi, MPL) suspended real-money features after the vote; firms are consulting counsel and weighing Supreme Court challenges. Related stocks (e.g., Nazara Tech) saw pressure.

• Platforms like Zupee announced they’ll keep free-to-play titles (Ludo, Snakes & Ladders) while shutting money games.

• Reuter outlook: a fast-growing segment once projected to $3.6B by 2029 faces a reset.

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If you’re a player:

• Do not try to deposit or bet via UPI/wallets/cards or through VPN workarounds — facilitators are prohibited and offences can be non-bailable. Withdraw remaining balances where possible and keep records/screenshots of wallets and KYC.

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What do I feel about this

This is one of the world’s broadest national bans on real-money online games — collapsing the “skill vs chance” distinction that many Indian startups had relied on. The policy bet is that the social costs outweigh the economic upside, and that India can still cultivate a globally competitive e-sports + social-gaming industry without cash stakes. Whether courts trim the law’s edges (ads, speech, federal powers) is something we have to wait and watch.