In 2025, the iGaming industry in India experienced its most dramatic transformation in years. The Promotion and Regulation of Online Gaming Act (PROGA), 2025 was passed, creating a complete ban on real-money online gaming across the country. This ban led to the immediate closure of major platforms, triggered regulatory and tax revisions, and forced businesses to pivot or exit the Indian market.
RMG ban takes effect
The most significant change in 2025 was the enactment of the PROGA. The law prohibits all online games in India that involve monetary stakes, regardless of whether they are classified as skill or chance-based. This includes fantasy sports, poker, rummy, casino-like offerings and betting apps. Financial institutions are barred from processing transactions connected to such games. Operators or facilitators found in violation face penalties including fines and imprisonment of up to three years. Advertising real-money gaming (RMG) services also carries legal risk.
George John, an iGaming expert, told SiGMA News, “The Online Gaming Bill introduces India’s first structured framework for regulating real money gaming. The legislation emphasises compliance and stricter penalties, aiming to bring more transparency to the sector. Its long term impact will depend on how effectively operators adapt to the new requirements.”
Lawmakers defended the ban citing concerns over addiction, financial harm and fraud tied to money-based games. The government estimated that hundreds of millions of Indians were affected by online money gaming with cumulative losses in the tens of thousands of crores.
Impact on industry revenue
Before the ban, India’s online gaming market was growing rapidly. Reports from the FICCI-EY “Shape the Future: Indian Media and Entertainment is Scripting a New Story” indicated nearly 488 million online gamers in 2024, with projections suggesting continued growth through 2025. The report also noted that of these players, more than 155 million participated in RMG formats, including fantasy sports, rummy and poker, and around 110 million people played online games daily in 2024.
Analysts valued the Indian online gaming sector in the range of roughly $3.6 billion to $3.7 billion before 2025, with expectations that revenue would continue to rise in the coming years. RMG contributed around 80 percent to overall industry revenues and was central to this growth.
“Smaller start-ups and emerging developers may face compliance burdens and financial strain due to penalties and regulatory requirements.”
– Ananay Jain, Partner and Media Industry Leader at Grant Thornton Bharat
From a business perspective, Ananay Jain, Partner and Media Industry Leader at Grant Thornton Bharat, explained, “From an industry perspective, the Bill is a double-edged sword. On the positive side, it legitimises esports and skill-based games, enabling professional growth, content creation, and educational initiatives, while providing a clear regulatory environment that reduces legal uncertainty and fosters innovation.”
With the ban in place, platforms that generated the majority of this revenue were forced to stop operations. The immediate impact included sharp revenue losses and a contraction in the market size for legal online gaming involving monetised contests or wagers.
Platform shutdowns
Major Indian and international iGaming companies reacted immediately to the ban. Dream11, India’s largest fantasy sports platform with a valuation previously near $8 billion, announced the shutdown of its real-money segment and shifted focus to non-monetised offerings and adjacent businesses. Mobile Premier League (MPL), Zupee, PokerBaazi and My11Circle also suspended or ended their money-based games in India to comply with the new law.
Manisha Kapoor CEO and Secretary General, Advertising Standards Council of India shared with SiGMA News, “The new bill makes it clear that any online games involving real money are not permitted based on fears of public health and financial risks. However the bill also provides for the promotion and innovation on gaming, so long as no real money is involved. We expect that the new regulatory authority will be able to create frameworks that balance the need for robust consumer protection and innovation and growth in the gaming industry.”
Some operators, like the parent of PokerBaazi (Moonshine), chose not to challenge the law in court and instead explore free-to-play business models. Others ceased Indian operations entirely, with international poker platforms such as WPT Global withdrawing from the market due to the regulatory environment.
Taxation and regulatory shifts
Before the ban, online gaming that involved money was subject to Goods and Services Tax (GST) at 28 percent on the full face value of stakes. This rate, alongside Tax Deducted at Source (TDS) on winnings, had already affected player behaviour and revenue distribution within the sector.
After the ban, GST continues to apply only where a platform collects fees or commissions for non-monetary games. Esports and social gaming products that do not involve entry fees or bets fall under the 18 percent GST bracket for service fees.
“We expect that the new regulatory authority will be able to create frameworks that balance the need for robust consumer protection and innovation and growth in the gaming industry.”
– Manisha Kapoor CEO and Secretary General, Advertising Standards Council of India
The PROGA also mandates the creation of a central Online Gaming Authority. This body will register and categorise online games, handle grievances, issue codes of practice and block unlawful gaming platforms under the Information Technology Act. Penalties were extended to corporate officers, and enforcement authorities were granted powers to investigate and seize assets in connection with offences.
Effects on jobs, investment
Industry associations warned that the ban could lead to significant job losses and a decline in foreign investment. Estimates suggested over 2,00,000 jobs were directly linked to real-money gaming companies in India, supported by more than 400 startups and related service providers. Foreign direct investment into the sector, previously exceeding ₹25,000 crore ($3.01 billion), faced uncertainty as capital re-evaluated India’s regulatory climate.
This Bill, passed by both Houses of Parliament, highlights our commitment towards making India a hub for gaming, innovation and creativity. It will encourage e-sports and online social games. At the same time, it will save our society from the harmful effects of online money… https://t.co/t1iUuH9JP1
— Narendra Modi (@narendramodi) August 21, 2025
Tax contributions from the sector, previously in the range of ₹20,000 to ₹31,000 crore ($2.41 billion to $3.73 billion) annually, were also expected to decline sharply following the ban. The Indian government anticipated losses in indirect taxes and state revenue tied to iGaming activity.
Impact on poker, casino and betting apps
The ban eliminated the legal basis for popular online poker and casino-style games that relied on entry fees with monetary returns. Operators removed these offerings from Indian markets and discontinued payment processing for such services. Betting and gambling apps previously operating in regulatory grey areas were explicitly targeted, with some high-profile foreign apps also blacklisted or banned in India.
The new Online Gaming Bill is more than regulation, it is protection. Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity.…
— PreethaReddyOfficial (@preethareddy28) August 20, 2025
This shift dissolved the longstanding legal debate over games of skill versus chance, placing all real-money gaming under prohibition regardless of legal categorisation.
Esports and casual gaming
While the ban disrupted real-money gaming, the Act specifically allows and recognises esports, social and educational gaming formats. The government positioned esports as a growth segment, providing opportunities for competitive gaming, training, events and prize-based tournaments that do not involve entry fees. Industry stakeholders noted that formal recognition could help develop India’s presence in global competitive gaming, although monetisation models will need to adjust to comply with the new law.
Land-based iGaming and casino
While online real-money gaming came under strict ban in 2025, land-based gaming and state-level gambling laws continued to shape India’s offline gaming landscape. Goa, Sikkim and the union territory of Daman and Diu remain the only regions where licensed physical casinos operate legally under specific state acts, with Goa hosting both land-based venues and floating casino ships on the Mandovi River, and Sikkim maintaining resort casinos under its own regulatory framework. Daman also has a legal structure for casino operations, though its market is smaller compared with Goa and Sikkim.
Beyond casinos, other states have differing approaches to gambling and skill-based games. Nagaland allows regulated games of skill such as poker and rummy under state law. Meghalaya provides licensing for certain gaming activities under its gaming act. West Bengal also permits skill-based games and lotteries.
Several states like Maharashtra, Telangana, Andhra Pradesh, Kerala and Assam strictly ban traditional gambling and casinos, though some permit state lotteries or horse-race betting under separate rules. Many other states do not explicitly address online gambling in their legislation, resulting in a patchwork of legal interpretations across India’s land-based and skill gaming landscape.
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