Online Gaming Bill 2025 Clears Parliament: Esports Celebrates, Fantasy Platforms Face Shutdown

Neha Tiwari August 25, 2025 5 0

[August 25, 2025 | Earthtechy Gaming News Desk]

India has officially drawn a line in the sand when it comes to gaming. On August 20, 2025, the Lok Sabha gave its nod to the Promotion and Regulation of Online Gaming Bill, and the very next day, the Rajya Sabha followed suit. Even though the Opposition tried to stall it, the bill sailed through, and with it, the country’s gaming sector enters a new, highly regulated era.

For anyone who loves competitive esports, this is cause for celebration. But for those hooked to fantasy cricket apps, poker rooms, or online rummy tables, the mood is grim. The law has triggered excitement on one side and panic on the other.

What’s Inside the Bill?

Unlike earlier fragmented policies, this law introduces a single nationwide framework to regulate gaming. It sets up a central authority to supervise four categories:

Esports
Educational games
Social gaming
Real money gaming (RMG)

The catch? While the first three categories will finally enjoy legitimacy, RMG has been outlawed outright.

The bill’s prohibition clause is blunt:

“No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service.”

This doesn’t just stop platforms from operating; it cuts them off financially too. Banks and payment gateways are banned from processing deposits or withdrawals linked to money games.

And if operators defy the law, the punishments are steep:

Up to 3 years in jail or ₹1 crore fine for offering services.
Up to 2 years in jail or ₹50 lakh fine for advertising them.

The message is loud and clear: cash-based online gaming has no future in India.

Fantasy Sports & Real Money Gaming Take the Biggest Hit

The ripple effects are already visible in cricket, where fantasy platforms have become synonymous with sponsorships.

Dream11 currently pays about ₹358 crore as the Indian cricket team’s sponsor.
My11Circle holds IPL fantasy rights worth ₹625 crore over five years.

These aren’t just numbers on paper — they represent deep-rooted ties between cricket and money-gaming brands. The new law threatens to snap those ties overnight.

Personal endorsements could also shrink. Many leading cricketers have deals with fantasy platforms, and those contracts are now under a legal cloud.

Sports lawyer Vidushpat Singhania explained it clearly:

“Cricket is huge in India and there won’t be any dearth of sponsors for Indian cricket. However, personal sponsorship market can shrink because of this bill. Fan engagement will also be affected.”

That “fan engagement” part is critical. Fantasy leagues made fans feel like part of the action. Without that, apps may attempt a subscription-based pivot — offering insights, stats, or gamified experiences without cash rewards. But let’s face it, the thrill of winning real money is what fueled their rise. Revenue will inevitably dip.

Behind the crackdown is a very real concern. Policymakers point to cases of youngsters drained of savings, families collapsing under debt, and lives lost due to gambling addiction. For the government, protecting citizens has outweighed the financial weight of the RMG industry.

Esports Finally Breaks Free

If real money gaming lost out, esports has gained everything it wanted. For years, esports was unfairly lumped together with gambling, despite being skill-driven. The new bill separates the two, giving esports a legal identity of its own.

Akshat Rathee, Co-founder and MD of NODWIN Gaming, welcomed the shift:

“The government’s intent to recognise and promote esports…is an encouraging step towards building a structured and globally competitive ecosystem.”

This couldn’t have come at a better time. The government has made it clear that safeguarding people takes priority over the revenue generated by the real money gaming sector.

For gamers, this means:

More official tournaments
Bigger prize pools
Recognition as athletes, not just hobbyists

For brands, it’s an invitation to invest in a sector with massive youth appeal and zero legal baggage. Esports, at least for now, looks like the safest corner of India’s gaming economy.

Government Justifies the Crackdown

The Centre insists the decision is about public safety, not stifling growth. Presenting the bill, IT Minister Ashwini Vaishnaw said the legislation was essential to both regulate gaming and protect families from devastating losses. His sharp remark — that “lifetime savings evaporate in games” — summed up the urgency.

Speaker Om Birla also backed the measure, calling it a “good Bill” introduced in the “national interest.”

In essence, the government is drawing a line: skill-based games like esports can thrive, but cash-fueled gambling-style platforms will not be tolerated.