The newly passed legislation prohibits the operation, promotion, and financial transactions related to online money gaming, which encompasses fantasy sports, poker, rummy, and lotteries. Financial institutions, including banks and fintech companies, are forbidden from facilitating transactions associated with these games. Offenders could face imprisonment of up to three years and penalties reaching one crore Indian rupees (approximately $176,000).

According to Ashwini Vaishnaw, the Minister for Electronics and Information Technology, this crackdown on online gaming is essential, as these platforms have been linked to addiction, fraud, and significant financial losses for users. Reports estimate that over 450 million individuals collectively lose close to 20,000 crore (around $3.5 million) each year through online gaming venues. The government asserts that the prohibition is intended to safeguard citizens from fraudulent activities and financial detriment.

S. Krishnan, Secretary at the Ministry of Electronics and IT, emphasized that this law would not stifle positive innovations in gaming, asserting, «Esports, educational games, and constructive social formats will continue to receive government backing.»

Additionally, the Bill establishes a framework for a regulatory body to manage licensing associated with esports and social gaming.

Serious repercussions anticipated following the Online Gaming Bill’s enactment

The online gaming sector in India has voiced strong opposition to the passage of the Online Gaming Bill, with organizations predicting more than 200,000 job cuts and the potential closure of approximately 400 businesses.

Industry bodies such as the Federation of Fantasy Sports (FIFS), the E-Gaming Federation (EGF), and the All India Gaming Federation (AIGF) have jointly called for government intervention. «We strongly advocate for progressive regulations rather than outright bans, believing this path is more suitable for the legitimate gaming industry in India. With appropriate guidance, India can become a global leader in establishing a safe, transparent, and flourishing digital gaming landscape,» they stated.

The impact of the Bill is already evident, with Dream11, a prominent player in the fantasy sports market, ceasing its real-money gaming activities and retracting its title sponsorship for the Indian cricket team. Other platforms, including MPL, Winzo, and GamesKraft, are reportedly contemplating similar actions.

Conversely, esports companies are cautiously optimistic about the government’s acknowledgment of their sector.

Akshat Rathee, co-founder of NODWIN Gaming, remarked: «The government’s initiative to recognize and promote esports marks a positive move towards developing a competitively global ecosystem. However, it is vital to have clear definitions distinguishing esports from online gaming, social gaming, and online money gaming to avoid ambiguity.»

The Online Gaming Bill is now pending the approval of President Droupadi Murmu before it can be enacted into law.