New Law Boosts E-Sports, Bans Money Games
New Delhi: With 488 to 591 million gamers in 2024—nearly half of India’s population—the gaming industry, worth ₹2 lakh crore (about $24 billion), was set to grow to $9.1 billion by 2029. However, the Promotion and Regulation of Online Gaming Bill 2025 has now drawn a line: it boosts fun, skill-based games while banning ones that involve betting money, aiming to keep players safe and support new opportunities.
On August 21, 2025, India’s Parliament passed this Bill, a major law that reshapes how millions play games online. A new Authority will oversee gaming, deciding which games are allowed, handling complaints, and working with sports and tech ministries. They’ll run campaigns to teach players how to avoid risky apps and explore careers in e-sports or game design.
Why the strict rules? The government wants to protect people, especially young players, from risks like addiction, losing money, or feeling stressed. Some reports link money games to serious issues, like debt or mental health struggles.
Consider Arjun (not real name), a 16-year-old from Bengaluru, part of a middle-income family where his dad runs a small shop. Arjun loves fantasy cricket apps, spending ₹50 to join leagues, hoping to win ₹500. Last year, he spent ₹2,000 but won only ₹800, leaving him frustrated. With the new law, his app might shut down or go cash-free. Now, Arjun’s school offers an e-sports club where he plays Dota 2, training for national tournaments with trophies, not money. He will learn teamwork and strategy, and his parents feel relieved he’s safer.
The bill greenlights games like e-sports, where players compete in video games like Free Fire or Valorant using skill and strategy, and educational or social games that teach or connect friends without bets. The government will support these with training centres, prizes, and tech hubs to make India a global gaming leader. For example, schools might host e-sports clubs, and companies could build apps that teach history or math through games.
But it slams the brakes on “online money games,” where players pay to win cash, like fantasy cricket apps (Dream11, My11Circle) or card games (RummyCircle). Even skill-based games are banned if they involve betting. Banks can’t process payments for these, and websites breaking the rules could be blocked. Violators, like those running or advertising such games, face up to three years in jail and a ₹1 crore fine, with tougher penalties for repeat offenders.
The law also aims to stop criminals from using games to hide illegal money or fund harmful activities. Prime Minister Narendra Modi called it a way to keep families safe.
The bill has, however, sparked debate. It could cost 200,000 to 400,000 jobs if 400 gaming companies close, and India might lose ₹25,000 crore in taxes and $6 billion in investments. Shares of Nazara Technologies, a major gaming firm, dropped 8-9% after the bill passed. Some fear players might turn to unregulated foreign websites, which could be unsafe or hard to track.
So who are India’s gamers? They’re a mix of young people, mostly 18 to 30 years old, with 60% aged 18-24 and 43% being young workers starting their careers. About 40% are women, and 41% of those who spend money on games are female. Gamers come from all walks of life: 37% from high-income families, 31% from middle-income, and 32% from lower-income households, like those of shopkeepers or farmers. Two-thirds live outside big cities, in small towns or villages, thanks to affordable smartphones and internet access. Around 138 to 155 million gamers pay for in-game items or contests, and 110 million play daily, often for quick fun on their phones.
Opposition leaders, like Congress MP Karti P. Chidambaram, criticised the bill for being rushed without enough discussion with gamers or companies. They suggested regulating money games instead of banning them, arguing that skill-based games like chess shouldn’t be treated like gambling. Some firms plan to challenge the law in court.
As India awaits the President’s approval, the gaming world faces a shake-up. Players from rich, middle, and working-class families, from cities to villages, could find new paths in e-sports or educational games. But the loss of jobs and taxes looms large, and the risk of sneaky foreign apps adds uncertainty. The bill bets on a safer, skill-driven gaming future—only time will tell if it’s a winning move.
– global bihari bureau
