New Delhi: The Union government has enforced the Promotion and Regulation of Online Gaming Bill, 2025, bringing a complete ban on all real-money online games across the country. Under the new law, advertisements promising monetary rewards for gaming will no longer be permitted. IT Secretary S. Krishnan stated that a regulatory framework will be established to encourage e-sports and social online gaming while restricting gambling-oriented platforms. Major companies, including Winzo, Zupee, and Mobile Premier League (MPL), have already suspended paid game operations. The sudden move has triggered sharp declines in gaming-related stocks, which collectively lost nearly 17.5% in market value over three days.
Rs 20,000 Crore GST Revenue at Stake, Sports Sponsorship Hit
The online gaming sector, which has attracted nearly Rs 25,000 crore in investments—largely foreign—is expected to face severe losses, with several startups at risk of closure. The industry contributes an estimated Rs 20,000 crore annually in GST revenue, raising concerns over a significant dip in government earnings. Experts caution that the ban could drive Indian players toward illegal offshore betting websites, increasing risks of fraud and money laundering. The legislation may also affect Indian sports, as gaming firms have been major sponsors of cricket, kabaddi, and football. While the law supports e-sports, the business models of companies that combine both e-sports and real-money gaming face major disruption.