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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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