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The ban on iGaming in India has sparked controversy, with critics warning that it may fuel the illegal gambling market.

PASA News
PASA News
·Mars

India's recently passed bill banning online real-money gambling is awaiting the president's signature, having swiftly passed through both houses of parliament, causing industry shock and international attention.

The legislation, named "Online Gaming Promotion and Regulation Act (2025)," was submitted to the Lok Sabha on August 19 and was approved almost without debate in the Rajya Sabha just two days later. Although it still requires the final signature of President Droupadi Murmu, who has already expressed support, it is widely expected that the bill will officially come into effect.

The bill explicitly prohibits any online games that allow users to participate with the intent of winning cash through fees, deposits, or other betting methods. The government emphasizes that the purpose of the legislation is to address social harms such as gambling addiction, mental health crises, and debt issues, and to curb risks of "financial fraud, money laundering, and even terrorism financing."

Federal Minister of Information Technology Ashwini Vaishnaw pointed out in parliament, "The government and parliament must take decisive action to curb this spreading social malaise."

However, critics argue that the ban not only fails to eradicate gambling behavior but may force the industry underground, weaken consumer protection, and exacerbate illegal transactions. The gambling law firm Segev LLC commented that although the bill seems progressive, it deviates from the international mainstream of licensing and regulatory models, which usually include responsible gambling mechanisms and other user protections.

The firm further warned that "a one-size-fits-all ban ignores the proven effective regulatory frameworks" that can channel gambling demand into transparent, regulated markets, safeguarding participants while generating tax revenue for the country. Conversely, the new law could promote the spread of black market gambling, exposing consumers to higher risks.

Moreover, the ban has already had a direct impact on the sports industry. The fantasy sports platform Dream11 immediately terminated its sponsorship of the Board of Control for Cricket in India (BCCI) after the bill's passage, leading to an embarrassing situation of "no sponsors" for the Indian national cricket team in the upcoming Asia Cup. According to Global Data Sport, Dream11's withdrawal even affected the operations of the European Cricket League, causing it to suspend recent events.

Industry organizations have voiced concerns that the ban could lead to massive unemployment and investment losses. The All India Gaming Federation, the Confederation of Electronic Games, and the Indian Fantasy Sports Federation stated in a joint declaration that this legislation could stifle a multi-billion dollar, legitimately developing digital skill games industry, endangering numerous jobs and legitimate business operations.

According to The Times of India, these organizations mentioned in a letter to the legislative bodies that the comprehensive ban not only harms the legitimate industry but also has a profound negative impact on the general users and citizens.

Regulatory technology media RegTechTimes also analyzed that the ban might backfire, with the government's intended targets such as money laundering potentially worsening. Offshore illegal casinos may provide channels for illegal cross-border fund flows, some of which may even originate from criminal activities, ultimately forming an unregulated "shadow economy."

It is worth noting that while the bill bans advertisements and promotions for real-money gambling, it does not prohibit esports and online social games that do not involve monetary bets.

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#iGaming#政策分析#产业AIiGamingBanIndiaAIIndianGamblingLawAIIllegalGamblingAIConsumerProtectionAIOnlineGamingRegulationAIFinancialFraud

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India plans to completely ban real money gambling games, causing a huge shake-up in the gaming industry.

India plans to completely ban real money gambling games, causing a huge shake-up in the gaming industry.

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