NEW DELHI: In a strong rebuke to online money gaming platforms, the government on Tuesday said it would rather address a major social problem than protect a small segment of the gaming industry. According to government sources, online money gaming has become increasingly addictive, leading not only to social harm but also severe financial losses. As a result, the government believes it has no choice but to ban these platforms. A government official stated that around 45 crore players losing money in such games, with an estimated ₹26,000 crore lost annually. The government came up with the Promotion and Regulation of Online Gaming Bill, 2025, which proposes a comprehensive regulatory framework. The bill seeks to ban platforms offering online money gaming while promoting social gaming and e-sports. “This decision is the result of almost three and a half years of deliberation,” the official said, adding that the government had tried various approaches, including exploring taxation through GST and proposing the formation of a Self-Regulatory Body (SRB). It also urged industry players to address the problem of addiction and improve transparency in their operations.
“But based on feedback from society and Members of Parliament across the country, it is clear: these efforts haven’t worked. So when the choice was between addressing a big social problem or protecting a small segment of the industry, the choice was obvious—we had to prioritize society,” said the official.
The government announced that the Promotion and Regulation of Online Gaming Bill, 2025 will be introduced in the Lok Sabha. The draft bill emphasizes the urgent need to regulate online gaming in the public interest, with a dual focus: banning online money gaming and encouraging e-sports and social games as part of the creative economy. Following the announcement, several major companies—including Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, My11Circle, and Nazara Technologies—are facing what industry insiders describe as an existential crisis.
According to industry reports, India’s online gaming market is currently valued at $3.7 billion and is projected to grow to $9.1 billion by 2029. However, the government dismissed concerns that the move would lead to job losses.
“Some say this will cause unemployment. But let me clarify: the same game developers and software companies can work on e-sports and social games. They don’t only work on money games. We have consciously chosen to promote the two-thirds of the industry that includes e-sports and online social games. At the same time, we want to discourage the one-third of the industry that’s causing harm,” he added.
The government also raised concerns about the manipulative use of algorithms on these platforms. “These platforms operate with opaque algorithms. They create conditions where users initially win small amounts, only to lose significant sums later. That’s part of the addiction loop,” said the official.
In Parliament, several MPs have consistently raised concerns, stating that their constituents are suffering due to the unchecked rise of money gaming apps. The official emphasized that players themselves are not to blame.
“People who play online money games are victims, not perpetrators. Victims should not be punished,” said the official.