The Indian government suddenly introduced a real-money online gaming ban in August. Although the bill has officially taken effect, the enforcement details have not yet caught up. This has thrown the industry into chaos, with asset write-downs amounting to $840 million, causing significant losses for many companies and about 7,000 workers losing their jobs. Supporters of the ban say it prevents gambling harm, but critics argue that it pushes users to foreign platforms, increasing regulatory risks.
Background and Content of the Ban
Three months ago, the Indian government ordered the immediate shutdown of all real-money online games, including poker, rummy, and fantasy sports. On August 21, the parliament passed the "Online Gaming Promotion and Regulation Act of 2025," which was quickly signed into effect by the president. The act prohibits any gaming platforms involving monetary rewards, without distinguishing between games of luck and skill, such as fantasy sports, but encourages esports and social gaming. Although the ban has been passed, the government has not yet issued official enforcement notices, and violators could face fines up to 21 million rupees or three years in prison, though players are not affected.
Economic Impact and Job Losses
As soon as the ban was implemented, industry losses emerged. Flutter Entertainment from the US wrote down $556 million due to the closure of its Indian subsidiary; Canada's Clairvest Group also wrote off its investment in A23 Rummy. India's Nazara Technologies wrote down $103.2 million on its investment in the parent company of PokerBaazi, and Paytm's net profit plummeted by 98% due to loan write-offs. Over the past 90 days, the industry's total asset write-downs exceeded $840 million, and nearly 7,000 people became unemployed. Before the ban, the industry contributed about 200 billion rupees in taxes annually, supporting nearly 20,000 jobs.
Various Perspectives and Controversies
Technology Minister Ashwini Vaishnaw said the ban prevented gambling exploitation of users, calling it a "major disaster." However, JCDC Sports' Jaya Chahar believes it instead drives users to foreign platforms, contradicting the protective intent. Former Dream11 executive Smriti Singh Chandra criticized the ban for being "overnight" without considering economic realities. Media lawyer Probir Roy Choudhury pointed out that the policy reversal creates regulatory risks and scares away investors.
Future Outlook and Industry Shift
India is now focusing on promoting esports and social games, which rely on skill rather than luck. However, Choudhury warns that the sudden change in the ban could have a chilling effect on investments, as the government's previous self-regulation plans have been abandoned, leaving the industry's future uncertain.
