India’s Online Gambling Bans Just Sparked a Showdown with the Gaming Industry

India is taking a decisive leap in reining in its fast-growing online gambling sector. In a bold move to curb addiction, financial exploitation, and potential criminal activity, the Union Cabinet has approved the Promotion & Regulation of Online Gaming Bill, 2025, a sweeping piece of legislation that could bring the multibillion-dollar real-money gaming industry to a halt.

The proposed bill seeks to outlaw all forms of real-money online gaming, including popular platforms offering fantasy sports, rummy, and other skill-based games played for cash. Officials say the bans are aimed at decreasing problem gambling and protecting vulnerable groups, but companies insist the measures violate constitutional rights and penalise responsible players. Industry representatives warn that such restrictions could drive users toward unsafe, unregulated sites with no safeguards in place. By contrast, licensed operators follow strict rules and offer safer options, and some of the most popular bonuses for players in India include no deposit free spins bonus codes, giving novice players the chance to play without spending their own money upfront.

Industry on the Line

India’s plan to outlaw real-money online gambling has sent shockwaves through the digital gaming sector, putting an entire industry, valued at over ₹313,000 crore (USD $3.6 billion), in a precarious position. The sweeping proposal, which would criminalize any online platform that offers games involving entry fees or monetary stakes, could have far-reaching consequences for both players and businesses.

Leading gaming companies argue the move ignores long-standing legal recognition of skill-based games. The Supreme Court has previously ruled that games like rummy and poker, when based on skill, do not fall under the definition of gambling. Industry leaders now say the proposed bill disregards this distinction entirely, despite constitutional protections under Article 19(1)(g), which guarantees the right to conduct lawful trade or business.

Critics also point to a puzzling contradiction, the same games, when played offline, are typically legal. Playing rummy at a club or poker at a private gathering is allowed, but move that same activity online, and it suddenly becomes a criminal offense. This legal inconsistency, they argue, creates confusion and unfairly penalizes online platforms.

Strongly Opposed

Trade groups like the All India Gaming Federation and the Federation of Indian Fantasy Sports have strongly opposed the bill, warning that banning legitimate Indian platforms will only push users toward illegal, offshore gambling sites. These unregulated operators lack any consumer safeguards, increasing the risk of fraud, exploitation, and addiction. Moreover, the Indian gambling industry is already losing over $4 billion in GST revenue to offshore gambling platforms, an amount that reportedly surpasses the total revenue of the country’s legal gaming sector. If left unchecked, this figure is expected to rise, leading to serious negative financial repercussions for the nation.

Proponents of the legislation argue the move is necessary to address rising concerns about mental health, financial harm, and the role of gambling in money laundering and organized crime. They cite manipulative design features, addictive gameplay mechanics, and aggressive marketing as key dangers, particularly for young users and those in vulnerable financial positions.

If passed, the law would impose strict penalties, including jail time of up to three years and hefty fines, on anyone involved in running, promoting, or participating in real-money online gambling. Banks and payment gateways would also be barred from processing transactions linked to such games.

Regulatory Scope

While the real-money online gambling ban hangs in the balance, India’s regulatory landscape is coming under scrutiny for being unclear and fragmented. Although the central government has introduced the Promotion and Regulation of Online Gaming Bill, 2025, aiming to impose a nationwide ban on real-money gambling, there is still no uniform law in place. Instead, regulation varies significantly across states, some, like Tamil Nadu and Telangana, have implemented complete bans, while others permit certain skill-based games.

This lack of a consistent federal framework means the same game can be legal in one state and banned in another. For example, the Supreme Court has recognized games like rummy and poker as games of skill, legally distinct from games of chance and therefore not considered gambling. However, several states have passed laws that ban these games outright when played online, disregarding legal precedent.

Currently, the Supreme Court is reviewing constitutional challenges to these state-level bans, including whether they violate the right to conduct lawful business under Article 19(1)(g) of the Constitution. Until the Court delivers a definitive ruling, or Parliament enacts a clear, nationwide law, India’s online gambling industry will remain in a legal grey area, vulnerable to contradictory regulations, enforcement complications, and ongoing uncertainty.