Crackdown on Online Betting and Real-Money Games in India

A New Bill Aims to Ban All Monetary Online Gaming, Citing Public and National Security Concerns

New Delhi, August 20, 2025: In a significant move to regulate India’s burgeoning digital landscape, a new bill has been tabled that seeks to impose a comprehensive ban on all online games that involve a monetary component. This legislative push is a direct response to a growing list of concerns, which includes the widespread prevalence of addiction, financial fraud, and money laundering. The new law, if passed, would represent the most sweeping action taken against online betting and real-money gaming to date.

The government’s action follows a series of smaller-scale bans and enforcement actions against a number of platforms that were deemed illegal. While a definitive list of 10 specific apps is not officially released, a number of well-known platforms have been either blocked or served notices. These apps have been targeted for a variety of reasons, including their alleged use as fronts for illegal activities and their operations in a legal grey zone where state-level laws differ.

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The new legislation, titled the “Promotion and Regulation of Online Gaming Bill, 2025,” is aimed at creating a clear legal framework. It is designed to promote e-sports and other non-monetary online social games, while imposing a total prohibition on real-money gaming. This move is a departure from previous regulatory attempts that sought to differentiate between games of “skill” and “chance.” The bill’s provisions make it an offense to “offer, aid, abet, induce, or otherwise promote” online games where users can pay or deposit money in expectation of winning cash or other stakes.

Several reasons have been cited for this all-encompassing ban. First and foremost, the protection of vulnerable groups, particularly the youth, is a major priority. Reports of financial distress, depression, and even suicides linked to gambling debts have been highlighted as a serious public health crisis. The new law is intended to safeguard individuals from the predatory practices of apps that lure users with misleading promises of easy money.

Secondly, national security and financial integrity have been cited as key motivators for the crackdown. It has been reported that many of these platforms, particularly those operating from foreign jurisdictions, have been used for cybercrime, money laundering, and even terror financing. The bill seeks to address these threats by also prohibiting banks and financial institutions from processing payments linked to these platforms, thereby cutting off their financial lifelines.

The proposed law also includes stringent penalties for violations. Anyone found to be hosting such games could face up to three years in prison and a fine of ₹1 crore. Those found promoting these platforms, including celebrities and social media influencers, could face a two-year jail term and a fine of up to ₹50 lakh. The bill clarifies that players themselves are not being criminalized; instead, they are being treated as victims of addiction and exploitation.

While the bill is seen by many as a necessary step, it has also sparked significant debate within the industry. Industry leaders have warned that a blanket ban could inadvertently push users towards illegal, unregulated, and offshore betting sites, where consumer protection is non-existent. The potential for job losses and a hit to the country’s burgeoning digital economy has also been raised as a concern. Despite these arguments, the government’s stance appears to be firm on this matter, with the legislation now proceeding through the parliamentary process.