The Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, which outlaws all money-based gaming apps—whether based on skill, chance, or both—including facilitating, advertising or offering them.
On paper, it is the government’s most sweeping strike yet against a looming industry that is expected to reach a $9-billion market by 2029. The law goes beyond targeting operators to include advertisers, promoters, and even financial intermediaries.
But the real story lies elsewhere. India has banned betting apps before—and yet, Decode’s reporting has shown how they kept thriving through mirror sites, surrogate ads, influencers, and shadow payment networks. From Aviator’s deepfake celebrity endorsements, flourishing cricket betting apps during IPL season, to Mahadev app’s offshore empire, enforcement has always been the missing piece.
The new law sets up an Online Gaming Authority to oversee what remains of the digital gaming economy, with esports and educational games exempt. But the bigger question is: can regulators finally enforce a clean break with real-money gaming, or will history repeat itself?
What is the government really banning?
The Bill outlaws online money games—online games where users deposit money with an expectation of monetary gain—regardless of whether the game is described as “skill” or “chance”.
It defines ‘online money game’ as any game which is played on any electronic or digital device and is managed and operated as a software through the internet or any kind of technology facilitating electronic communication.
The Bill explicitly exempts e-sport and online social games from its sweeping ban.
E-sports refer to structured, multiplayer, competitive digital games governed by clear rules, where outcomes depend solely on player skill—be it strategic thinking, reflexes, or mental agility. The government plans to establish a National e-Sports Authority to formally recognise, promote and regulate this segment.
On the other hand, online social games are digital games played purely for recreation, education, or skill development. They do not involve stakes or monetary rewards.
By defining all money-based games as illegal, the Bill brings under its ambit platforms like Dream11, MPL, WinZO, and Zupee—which were thriving in India’s fast-growing gaming market. These apps had thrived on the legal grey zone that allowed “games of skill” with monetary stakes, attracting millions of users, celebrity endorsements, and heavy venture capital funding. By banning entry fees and cash rewards outright, the law effectively wipes out their core business model, putting at risk both their massive user base and the investments that fuelled their rapid rise.
What is the problem that the ban wants to solve?
The Bill is pitched as a way to protect vulnerable citizens and curb illicit finance. In its Statement of Objects and Reasons (SOR), IT minister Ashwini Vaishnaw said the decision to “completely prohibit” online money gaming was “prudent”, “practical” and “in the interest of general public” given its “deleterious and negative impact on individuals, families, society and nation”.
The Centre’s stated reasons for “assuming control” go beyond consumer protection. The SOR points to national security risks, claiming that many operators “circumvent state regulations, evade taxation, launder money, and use offshore servers”.
Real-money gaming in India has become a growing social crisis, marked by widespread financial loss, addiction, and even suicide. According to government figures, nearly 45 crore people lose around Rs 20,000 crore annually through online real-money games.
The risks are acute. In Karnataka alone, police records show 32 suicides over 31 months, with victims overwhelmed by gambling debts. Hyderabad’s suicide helplines report a 65% surge in calls linked to online betting—calls that now represent 36.5% of all distress calls, up sharply from 22% in 2023.
Who is criminalised or penalised under the bill?
Under the Bill, liability is cast not only on the gaming companies but also across the ecosystem that enables real-money gaming. Platform operators who host or offer online money games are at the centre of the regulatory net, but the ambit extends further.
Anyone facilitating or authorising transactions for such games—including payment processors, financial intermediaries, and even banks—can be held accountable. Advertisers and promoters who market or publicise online money games are also explicitly brought within the scope of criminalisation.
The penalties prescribed are significant. Offering or facilitating online money games can attract both imprisonment and fines. The Bill provides for jail terms that may extend to 3 years, alongside fines that can go up to Rs 50 lakh. The same can extend up to 5 years and 2 crores respectively on repeated violation of sections.
By extending punishment beyond gaming platforms to also cover transaction enablers and promoters, the Bill takes a wider enforcement approach. Its framing targets the entire operational chain of real-money gaming, increasing legal risks for any actor associated with such platforms.
Will blocking domains and cutting off payment channels be enough?
Historically—no. While such measures create hurdles, they rarely dismantle the ecosystem. Operators adapt quickly, resurfacing through mirror sites, surrogate advertising, influencer tie-ups, Telegram funnels, and covert payment routes. Decode’s investigations have shown just how resilient these networks are.
Take the Aviator scam: the illegal crash-style betting game was pitched as a “skill-based” money-maker but thrived through mirror domains, YouTube influencer promotions, AI-generated celebrity endorsements, Telegram groups, and APK sideloading. Despite repeated debunks, operators raked in lakhs before platforms acted.
Decode also found over 2,000 Meta ads pushing Aviator and its “prediction services,” some featuring AI deepfakes of celebrities like Shah Rukh Khan, Virat Kohli, Mukesh Ambani, and Ratan Tata—demonstrating the deceptive sophistication of these schemes.
The Mahadev app ran on an even larger scale. Operated from Dubai, the network built a parallel shadow economy via hawala, mule accounts, and offshore operators. Decode reported how unemployed but tech-savvy Indian youth were hired in call-centre-style setups to handle customer calls, payments, and acquisition. Despite FIRs and police crackdowns, the app thrived by constantly shifting infrastructure and leveraging political clout for protection.
Similarly, Decode’s IPL betting investigation showed that even after bans, platforms like Lotus365, Parimatch, 1xBet, and Fairplay continued targeting Indian users. They leaned on Instagram influencers, surrogate ads, and Telegram groups, while routing deposits through Indian banks and mule accounts to bypass restrictions.
Therefore, for enforcement to work, the Ministry of Electronics and IT, finance regulators, law enforcement and global platforms will need to act in tighter coordination. Even then, the technical and financial agility of operators makes outright elimination a steep challenge.
