Was Banning Real-Money Games the Right Decision? What Were the Effects on India?
Was Banning Real-Money Games the Right Decision? : The Indian government has banned real-money games. Was this the right decision, or should it have happened sooner? Let’s explore the details and its effects on India.
On August 20, 2025, the “Promotion and Regulation of Online Gaming Bill, 2025” was passed by the Lok Sabha. The very next day, on August 21, 2025, it was approved by the Rajya Sabha. Finally, on August 22, 2025, it officially became an Act with the President’s assent.
The new law brings a complete ban on all real-money games in India. Any platform that violates this can face serious consequences, including up to 3 years of jail time and a fine of up to ₹1 crore. Furthermore, anyone found promoting or advertising these platforms can be sentenced to up to 2 years in jail and a fine of up to ₹50 lakhs.
So, are you one of those promoting them? We often see promotions for these real-money games and betting apps on Instagram and Facebook Reels. If you are involved, now is the time to remove any such promotional videos and posts from your accounts. YouTube and Facebook have already started to restrict channels and videos related to these activities, which has directly impacted creators who depended on them for their income.
The State-Level Bans: A Precedent
It’s important to note that many states in Southern India had already banned online betting and real-money games well before this national law was enacted. These included:
- Telangana (since 2017)
- Andhra Pradesh (since 2020)
- Karnataka (since 2021)
- Tamil Nadu (since 2023)
These states, with their forward-thinking vision, did not allow these platforms to gain a foothold. This means the 45-50 crore users were primarily from the remaining states. If not for these prior state-level bans, nearly 75% of India’s population would have been on these gaming platforms.
The Impact on Gaming Giants
Following the law’s passage, fantasy cricket giants like Dream11 and My11Circle have stopped offering real-money games on their platforms. While you can still play, the prizes have shifted. For example, on Dream11, the first-place winner might now receive a car or other gifts instead of cash. The days of these companies using entry fees to sponsor major tournaments are over.
Online real-money platforms, including online rummy platforms, MPL, and Paytm Games, have also discontinued their real-money services. You can no longer deposit money to play on these apps; they now function as free-to-play entertainment platforms.
So, what was the reason for this ban? The government’s stated rationale for the law is to address public health and social welfare concerns, citing issues like gaming addiction, financial distress, and the potential for fraud and money laundering associated with these platforms.
The Effects on Indians
This decision has impacted an estimated 45 crore (450 million) Indians. Many were heavily addicted to these games, and some had a history of losing large sums of money. There were also reports of players on platforms like online rummy who found ways to earn large amounts through tricky methods.
There were long-standing suspicions that the grand prizes on platforms like Dream11 and My11Circle were often unattainable, with many believing that winnings above ₹1 lakh were fake. Regardless, many users spent a significant amount of money in the hope of winning, often losing it all.
This ban also affects the partnerships of major companies. For instance, Dream11’s three-year jersey sponsorship contract with the BCCI has ended. You may have noticed the “Dream11” logo on the Indian players’ jerseys, which is no longer there. Dream11’s other partnerships with leagues like the Indian Super League (ISL), Pro Kabaddi League, and the Caribbean Premier League (CPL) are also in question.
What About International Betting Apps?
Platforms like 1xBet, 10cric, Mostbet, Mahadev Book, and Parimatch are still running. Since they are operated from outside of India, they are officially banned, but they continue to operate through illegal methods like mirror sites to grant access to Indian users.
If you have money stuck in these apps, you should be aware that it might be difficult to recover, as many of these services are no longer operational on Indian servers.
What are your thoughts on this ban? Do you think it was a good move by the government? Share your opinion in the comments below.