Billions at Stake, Billions Lost: The Fall of Real Money Gaming

Every game of chance carries within it the certainty of an ending. For India’s real money gaming industry, the roll of the dice was always borrowed time. On Wednesday, the inevitable arrived as the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025, outlawing RMG (Real Money Gaming) altogether. An ecosystem built on billions in revenue, lakhs of jobs, and a fragile balance between skill and speculation has now been brought to an abrupt close. This move has left stakeholders in shock.

What the Bill Says

The new legislation bans all real-money games—whether skill or chance-based—that involve wagers, coins, or tokens. Offenders face up to five years in jail and multi-crore fines. It also creates a central authority to license and monitor platforms, block offshore operators, and impose penalties on violators, advertisers, and intermediaries.

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At the same time, the Bill distinguishes between gambling-like money games and e-sports, social, and educational gaming, formally legitimising the latter. By encouraging investment, tournaments, and content creation, the government says it is striking a balance between user protection and industry growth.

Why Now

Government officials have long argued that money gaming was causing heavy losses for Indian users—estimated at over Rs 20,000 crore annually—and leading to severe financial distress, including cases of self-harm. With over 450 million people engaged in money-based gaming, regulators said public welfare outweighed revenue considerations.

“The bill cites deaths and suicides and there are no solid statistics or proofs to substantiate the same,” said Dinesh Jotwani, co-managing partner of Jotwani Associates, Advocate Supreme Court of India, adding that ambiguity had persisted for years despite Supreme Court categorisations of skill-based and chance-based games.

Industry insiders are less convinced. Some experts, speaking anonymously, compared the rationale to selective regulation. “The same ‘suicides’ happen due to the stock market too, why these selective principles and rules?” one noted.

How Big Was the Market

The timing makes the ban all the more striking. India’s RMG market was valued at $3.2 billion in FY2024, accounting for a staggering 85.7% of the online gaming industry’s $3.7 billion revenue. The government had only recently seen a windfall from the sector: GST collections jumped over 400% in six months after the 28% levy in 2023, rising from Rs1,349 crore to rs 6,909 crore.

The sector also became one of the biggest advertisers in India. In the 2025 IPL season, real-money gaming and fantasy sports brands spent about ₹2,000 crore, nearly 40% of the tournament’s Rs 5,000 crore advertising pie. That inflow is now expected to vanish overnight.

Who Loses Out

The immediate fallout will be felt across jobs and investments. The industry directly employed thousands and indirectly supported nearly two lakh jobs—from software developers to ad agencies, esports platforms, and event organisers. Venture capital money, already slowing after the GST hike, is expected to dry up further.

“India is entering a transformative era in digital gaming with the Promotion and Regulation of Online Gaming Bill, 2025… While this clarity fosters innovation and reduces legal uncertainty, the blanket restrictions on certain real-money games may stifle revenue-generating segments and burden smaller start-ups with compliance costs,” said Ananay Jain, Partner, Grant Thornton Bharat.

The E-Sports Opening

While one side of the ecosystem collapses, the other sees opportunity. The Bill legitimisese-sports, creating space for professional tournaments, investments, and content creation.

“The government’s intent to recognise and promote esports, as highlighted in the recent bill, is an encouraging step towards building a structured and globally competitive ecosystem. However, for this vision to truly materialise, it is critical that the terminology used in the bill, particularly the distinctions between esports, online gaming, online social gaming, and online money gaming be clearly defined and uniformly understood,” said Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming.

Rathee added that without clear definitions, overlaps could continue to confuse regulators, investors, and even players, undermining long-term stability.

What Next

The Bill still has to pass in the Rajya Sabha before it becomes law, and legal challenges are expected. As Jotwani pointed out, “As per the Constitution of India, everyone has a right to do their profession and a right to livelihood too.” Stakeholders are expected to approach the Supreme Court once again, arguing for regulation rather than prohibition.

Even if banned, industry veterans believe workarounds may emerge. Just as offshore betting apps continued despite earlier bans—using mule accounts and, increasingly, crypto—some RMG platforms may seek similar routes.

For now, however, an industry that once accounted for nearly nine out of every ten rupees earned in India’s online gaming market has been dismantled in a single legislative move. Whether this ushers in a golden era for e-sports or pushes an entrenched ecosystem underground remains to be seen.