India's New Online Gaming Bill Bans Real Money Apps, Affects Fantasy Sports

The new Online Gaming Promotion and Regulation Bill 2025 bans all real money apps, including fantasy sports and online lotteries, in India.

New Delhi – In a major move to curb the social and financial issues linked to real money gaming, the Online Gaming Promotion and Regulation Bill, 2025 has been passed by the Lok Sabha. The new law imposes a complete ban on online platforms that involve real money, with violations punishable by up to three years in prison and a fine of ₹1 crore. This development is expected to significantly impact popular fantasy apps and other platforms operating in India.

What Is the New Law and Who Does It Affect?

The bill creates a strict legal framework for online games, specifically targeting those that involve a financial risk. Under the new law, all forms of online money gaming, whether based on skill or chance, are banned. This includes:

1. Fantasy sports and other skill-based games
2. Online lotteries
3. Online card games like poker and rummy
4. Betting and gambling apps

The new regulations apply to platforms on all devices, from computers to mobile phones, and also extend to foreign-based platforms. The law's primary focus is on the providers of these services, not the players. Individuals who play these games will not face any penalties.

Also read - India on Verge of "Guyana-Sized" Oil Boom? 22 Billion Barrels Could Transform Economy!

The Impact on Cricket and Fantasy Sports

The new law could have a major effect on India's cricket ecosystem, which is heavily funded by fantasy sports platforms. Companies like Dream11 and My11Circle are major sponsors of top cricket tournaments and the Indian national team.

Also read - Maval Bridge Collapse: 5 Dead, 25+ Missing Near Tourist Hotspot

While the bill bans real money gaming, some experts believe that fantasy sports might still be able to operate under a subscription-based model. In this model, users would pay a fixed fee to access a platform, but not to participate in games with the aim of winning cash. However, any platform that allows players to pay to win cash is now explicitly illegal.

Why the New Law Was Needed

Union Minister for Electronics and IT, Ashwini Vaishnaw, described online money apps as a serious societal issue. He highlighted numerous cases where individuals lost their life savings and entire families were ruined due to addiction to these games. The Minister stated that many of these platforms use "rigged algorithms" that make it almost impossible for players to win. A report cited by Vaishnaw revealed 32 suicides linked to online money gaming over a 31-month period.

Also read -  Tragic Avalanche Hits BRO Camp in Mana, 8 Dead and 46 Rescued

Penalties for Violators

The bill outlines severe punishments for companies and individuals who offer or promote banned games:

1. Companies: Can face up to 3 years in prison and/or a ₹1 crore fine. Repeat offenders may face 3–5 years in prison and up to a ₹2 crore fine.
2. Financial Institutions: Banks and other payment gateways that process transactions for banned platforms are also subject to the same penalties.
3. Celebrity Endorsers: Film stars and sports personalities who promote these illegal games can be punished with up to 2 years in prison and/or a ₹50 lakh fine.

The new law also grants authorities the power to search, seize, and investigate assets related to these crimes without a warrant in certain situations.

Also read - Controversy Erupts at Jadavpur University Over 'Azad Kashmir' and 'Free Palestine' Graffiti

Key Takeaways from the New Bill

• Complete Ban on Real Money Games: This is the most significant part of the law. It applies to all games where players pay to win money.
• Creation of a Regulatory Authority: A new national-level body will be formed to oversee the online gaming industry, including registering and classifying games, and handling disputes.
• Focus on Providers, Not Players: The law holds companies, their officers, and advertisers accountable, not the individual players.
• Impact on the Sponsoring Ecosystem: The bill will likely force a major shift in how fantasy sports and other gaming platforms operate and fund sports teams in India.

FAQs

What is the primary purpose of the new online gaming law?

The law aims to protect citizens from the financial and social harm caused by addiction to online money apps and gaming.

Will all fantasy sports apps be banned?

The law bans real money gaming. Platforms may still be able to operate a subscription model where players do not pay to win cash prizes.

Can a player be arrested for playing these games?

No, the law does not penalize players. Penalties are only for the companies, their officers, and those who facilitate or advertise the games.