On August 21st, 2025, the Indian government passed the Promotion and Regulation of Online Gaming Act.
The Act rewrites the rules for what is allowed when it comes to online gaming, and specifically targets real-money games.
Since India is one of the biggest gaming markets in the world, these changes aren’t just local news. They directly affect how publishers, developers, and UA managers plan their products, campaigns, and growth strategies.
So, what exactly does the new law say?
In this guide, we’ll go over the main changes, the immediate impact on the industry, and how companies are adapting to the new requirements.
Why Was the Bill Needed?
First, let’s go back to the roots of the problem.
For years, real-money gaming apps in India operated in a gray zone. Some positioned themselves as “skill-based,” others took advantage of legislative loopholes. But the impact on users was becoming hard to ignore.
According to government data, over 450 million people were affected by money-gaming apps, with total losses of around $2.4 billion USD. Families spoke out about rising cases of addiction, fraud, and even suicides linked to betting-style platforms.
The new law has one clear goal: to protect users, especially younger audiences, while still allowing room for healthy forms of digital play.
What Does the Bill Cover?
The Promotion and Regulation of Online Gaming Act identifies three main types of online games:
- Real-money games
- E-sports
- Social and educational games
Real-Money Games
Real-money games are games where players pay to play and expect to win money back. From now on, they are officially banned.
It doesn’t matter if it’s based on skill, chance, or both. Fantasy sports, poker, rummy, betting-style apps, and similar formats are all covered under this definition.
Advertising them is also illegal, whether through direct ads, influencer campaigns, or sponsorships.
And even if a platform tries to operate quietly, banks and payment providers aren’t allowed to process transactions coming from these games anymore.
To manage this new ecosystem, the government will establish a central Online Gaming Authority. It will have the power to categorize games, register those considered safe, and issue guidelines that developers and publishers must follow.
Finally, violations come with serious consequences: hefty fines, prison sentences, and non-bailable offenses.
E-Sports
Competitive multiplayer gaming gets an official stamp of approval.
The law treats e-sports as a sport, since the outcome of competitions, tournaments, and leagues depends on player skill and performance.
This recognition opens the door for more structured growth, from national events to sponsorship opportunities.
Social and Educational Games
Not every game is under scrutiny.
Titles built for entertainment, education, or skill-building, without monetary stakes, are actively encouraged.
The government even has the power to register and promote safe games, supporting developers who create content aligned with digital literacy and healthy entertainment.
Who Does the Bill Apply to?
This Act applies across all of India, creating one uniform rulebook for the entire country.
But it isn’t just for Indian companies.
Offshore operators who target Indian users with real-money games are also forbidden to promote their games in the country.
Impact on the Gaming Industry
The passing of this bill has had an immediate and significant impact on India’s online gaming industry, particularly the real-money gaming segment.
The law triggered a shutdown of the cash-based gaming economy that had boomed over the last few years.
For example, PokerBaazi, a leading online poker platform, stated it was “pausing operations in compliance with the Promotion and Regulation of Online Gaming Bill, effective immediately”, with no real-money games to be offered.
This was echoed across the industry.
Dream11, India’s largest fantasy sports app, shut down its paid contests. Other gaming companies like Zupee, Mobile Premier League, Probo, My11Circle, and more have all paused real-money play on their platforms.
Adapting the Business Model
Besides suspending real-money games, the companies impacted by the ban are working to adapt their business model to the new requirements.
Companies like Zupee are focusing on free-to-play games, while others like Dream11 have started looking into expansion in overseas markets.
In-app advertising is also a popular choice, with several fantasy sports operators relying on it to sustain their business model.
What the Future Holds
The Promotion and Regulation of Online Gaming Act is a turning point for the Indian market.
Real-money games that once drove huge growth are now banned, along with the ads and payment flows that kept them alive. For many companies, that has meant shutting down entire business lines overnight.
But the story does not end there.
The same law that closed the door on cash contests has opened space for formats that are safer and more sustainable. For developers and publishers, this means there are still ways to reach millions of players in India with products that carry less risk and more trust.
India is still one of the world’s biggest gaming markets. The companies that adapt early, respect the new rules, and commit to building in the supported categories will be the ones to grow in the years ahead.
