News Summary

The Indian government is set to propose a new legislation, titled the Promotion and Regulation of Online Gaming Act, 2025, which aims to impose a blanket ban on real-money gaming. This move is causing significant concern among startups and investors in the sector. Real-money gaming has been a major revenue driver for India’s online gaming industry, accounting for $2.4 billion of the $3.8 billion generated in the financial year 2023-24. However, the industry has faced increasing scrutiny due to incidents of harm linked to gaming losses. The proposed ban includes restrictions on financial transactions related to real-money games and penalties for companies and celebrities promoting such games. Industry leaders warn that this legislation could severely impact the sector, potentially leading to business closures, significant write-offs, and job losses. Some startups are considering expanding outside India, but this has proven challenging as they currently rely heavily on the domestic market. Despite previous efforts to regulate the industry through self-regulation, conflicts among stakeholders have hindered progress. The proposed bill is expected to be introduced in the Indian parliament soon.