The Economics of Gambling
The 2025 Ban on Real-Money Games
How the Promotion and Regulation of Online Gaming Act of 2025 banned real-money online games in India, promoted e-sports, and hit fantasy and rummy companies.
In 2025, India banned real-money online games.
The law
The Promotion and Regulation of Online Gaming Act, 2025, passed by Parliament in August 2025:
- Bans online money games, whether of skill or chance.
- Bans their advertising and payments processing.
- Promotes e-sports and social games.
Reasons given
- Addiction and financial losses.
- Money laundering and fraud concerns.
Industry impact
- Platforms like Dream11, MPL and rummy apps stopped money games.
- Thousands of jobs were affected.
- Firms pivoted to free-to-play and other products.
Debates
- Supporters: protects vulnerable users.
- Critics: may push users to offshore illegal sites.
The pivot
A fantasy sports app removes cash contests and launches a free-to-play version with sponsors' prizes.
Thinking the ban covered all online games
It targeted money games; e-sports are promoted.
Key takeaways
- The 2025 Act banned real-money online games.
- It bans ads and payments for them.
- It promotes e-sports.
- Critics fear offshore sites.
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