Lok Sabha Passes Online Gaming Bill 2025
In a major development for India’s gaming industry, the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025 during the Monsoon Session on Wednesday. The bill, piloted by Electronics and IT Minister Ashwini Vaishnaw, seeks to boost e-sports and casual gaming but imposes a strict ban on real-money gaming and online betting.
The decision comes amid rising concerns about addiction, financial losses, money laundering, and even national security threats linked to offshore gaming platforms. Vaishnaw noted that several platforms were being misused for money laundering and terror financing, while also evading Indian tax regulations.
The bill was cleared without debate, as Opposition MPs staged protests demanding discussions on electoral roll revisions in Bihar.
Which Indian Apps Will Be Impacted?
The bill directly affects real-money gaming (RMG) platforms—apps that require users to pay money to participate and potentially win cash rewards. India’s online real-money gaming market was projected to reach $3.6 billion by 2029 (Lumikai), but the ban is expected to change the industry landscape.
1. Dream11
- Valuation: $8 billion
- Popular for fantasy cricket during IPL, Dream11 lets users build teams by paying as little as ₹8.
- With the bill’s passage, Dream11’s model could face a complete ban, often referred to as the “Dream11 ban” in discussions.
2. Mobile Premier League (MPL)
- Valuation: $2.5 billion
- Known for a wide range of skill-based money games.
- MPL will be among the hardest hit as the online gaming bill ban rules come into effect.
3. My11Circle, Howzat, SG11 Fantasy
- Fantasy sports apps like My11Circle and Howzat are expected to be impacted similarly to Dream11.
4. WinZO & Games24x7
- WinZO and Games24x7 (parent company of RummyCircle & My11Circle) may see significant revenue disruptions.
5. Junglee Games, PokerBaazi, GamesKraft
- Poker and rummy apps including RummyCulture, PokerBaazi, and Junglee Games will fall under the banned category.
Stock Market Impact: Nazara Technologies in Focus
One of the immediate market reactions came from Nazara Technologies, a listed gaming company.
- Nazara share price dropped as much as 13% in Mumbai trading after the bill’s announcement.
- While Nazara’s direct revenue from RMG is limited, it has stakes in PokerBaazi, raising investor concerns.
- Casino operator Delta Corp also faced sharp intraday losses before recovering slightly.
This highlights how investor sentiment around gaming stocks is highly sensitive to regulatory changes.
What Happens Next?
The Online Gaming Bill 2025 is not law yet—it still needs to pass the Rajya Sabha and receive the President’s assent. Once cleared:
- Offering or facilitating real-money games will be punishable by up to 3 years imprisonment and/or a ₹1 crore fine.
- Banks and financial institutions will be barred from processing payments related to such games.
- Advertising of online money games will also be strictly prohibited.
On the positive side, the bill recommends the formation of a regulator for e-sports, social games, and educational gaming platforms, which could boost India’s presence in the global e-sports market.
Why Now? Government’s Rationale
Minister Ashwini Vaishnaw told Parliament that the legislation was necessary because:
- People are losing life savings on addictive money games.
- Offshore operators exploit loopholes, causing tax evasion and law enforcement challenges.
- Real-money gaming has been linked to criminal activities, terrorism funding, and financial frauds.
At the same time, the government clarified its support for safe, skill-based e-sports and casual gaming, ensuring the industry’s positive aspects are promoted.
Conclusion
The Lok Sabha online gaming bill marks a turning point for India’s gaming sector. While the move is aimed at protecting consumers and ensuring national security, it also raises serious questions about the future of fantasy sports giants like Dream11, MPL, and RummyCircle.
With Nazara Technologies’ stock already reacting and investors closely watching the Rajya Sabha proceedings, the coming weeks will be crucial for India’s $3.6 billion online gaming market.
If the law takes effect, the era of real-money gaming apps in India may come to an end, paving the way for a regulated, e-sports-driven industry.
