New Delhi, August 21 — Parliament has passed The Promotion and Regulation of Online Gaming Bill, 2025, with the Rajya Sabha giving its nod today amid din and without debate. The Bill, already cleared by the Lok Sabha on Wednesday, marks a watershed moment for India’s gaming landscape—encouraging e-sports and online social games while imposing a complete ban on harmful online money gaming services, advertisements, and financial transactions.
The legislation provides for the appointment of an Online Gaming Authority for coordinated policy support, strategic development, and regulatory oversight of the sector. Its objective is to safeguard individuals, especially youth and vulnerable populations, from the adverse social, economic, psychological, and privacy-related impacts of money gaming.
Under the new law, offering, operating, or facilitating online money games will be completely banned. Violators will face up to three years of imprisonment and fines of up to Rs 1 crore, or both.
Minister’s Remarks
Moving the Bill, Union Electronics and IT Minister Ashwini Vaishnaw said online money gaming has become a “public health menace.” He stressed that several families have faced severe financial distress due to these games.
Highlighting the scale of the problem, the Minister said around 45 crore people lose nearly Rs 20,000 crore every year through online money games, which foster addiction, fraud, and cheating. He clarified that the Bill segregates the sector into three segments—e-sports, online social games, and online money games—with the government set to actively promote the first two categories.
Industry Shockwaves
The Bill has rattled India’s sunrise gaming industry, which was projected to touch US$3.6 billion by 2029, backed by global investors like Tiger Global and Peak XV Partners. Executives fear imminent job losses and shutdowns across app-based businesses, which attracted billions in venture capital.
The industry estimates 2 lakh job losses and Rs 20,000 crore in lost tax revenue to the exchequer. Moreover, the Rs 2,000 crore annual advertising and marketing spend of the sector is expected to vanish if the blanket ban takes full effect.
First Fallout: Probo Shuts RMG Arm
Opinion trading platform Probo announced an immediate shutdown of its real-money gaming operations following the Bill’s passage, Economic Times reported.
“As unfortunate as it is, we respect the government of India’s latest Online Gaming Bill. In light of this development, Probo has decided to discontinue its real-money gaming (RMG) operations with immediate effect until further notice,” the company said.
While acknowledging the government’s concerns, Probo argued that a blanket ban could “unintentionally limit the sector’s potential and stifle innovation.”
Notably, Probo was already under the scanner of the Enforcement Directorate (ED) since July for alleged illegal gambling and money laundering. The agency searched multiple premises linked to the company in Gurugram and Haryana, freezing Rs 284.5 crore in fixed deposits, shares, and locker contents.
Gamers See Relief, Esports Gains Recognition
For millions of gamers and esports athletes, the Bill is being hailed as a long-awaited breakthrough. Until now, esports and skill-based games were lumped together with gambling, leading to stigma and regulatory uncertainty.
The clear separation of esports from real-money gaming gives esports its own identity—rooted in competition, talent, and structured investment rather than chance or betting. Analysts say this will pave the way for better infrastructure, investment, and recognition of esports in India.
Startling Numbers Behind Online Gaming in India
Media reports underline the scale of the gaming phenomenon:
- Indians spend nearly 90 crore hours daily on online games—equivalent to 100,000 years lost every single day.
- The online gaming industry is valued at Rs 32,000 crore annually, with about Rs 8.8 crore wagered every day, or Rs 62,000 every second.
- Nearly 65 crore Indians—almost half the population—engage in some form of online gaming, with 20 crore people specifically playing real-money games.
- About 11 crore Indians log in daily, almost half the population of Pakistan.
Age-wise profile of gamers:
- 16% (7.3 crore) are under 18.
- 40% (8 crore) are aged 18–24.
- 35% (11 crore) are aged 25–34.
- 15% (8 crore) are above 35.
This means 34 crore Indians below 34 years are involved in online gaming. On average, each gamer spends 14 hours per week (about 2 hours daily), with children playing at least an hour a day—higher during holidays.
Productivity Loss and Economic Cost
Experts warn that gaming addiction is draining nearly 2% of India’s GDP productivity, amounting to Rs 6.8 lakh crore annually. For perspective, this is three times the government’s annual Rs 2.3 lakh crore food security program for 80 crore citizens.
In 2024 alone, companies in the sector earned Rs 32,000 crore—the same amount players collectively lost. Platforms typically deduct up to 30% commission from winnings. Only 25% of players win anything, and even those winnings shrink further under taxation. For example, a Rs 100 win reduces to just Rs 42 after 28% GST and 30% TDS.
The Road Ahead
The Chenab Times has learnt that while the Bill closes doors on real-money gaming, it opens new avenues for esports and online social gaming. The government maintains that “online gaming will flourish under the new law,” with only the harmful financial gaming practices curbed.
However, industry executives are preparing to challenge the Bill in court, citing risks of innovation loss, capital flight, and mass unemployment.
For now, the passage of the Bill marks both a crackdown on gambling-style online gaming and a new dawn for India’s esports ecosystem.
(with inputs from various reports)
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