India’s online gaming sector reels as new law bans all money-based games: Legal expert | AGB
Summary
The new Promotion and Regulation of Online Gaming Act, 2025 (PROGA) imposes a blanket ban on ‘online money games’ in India, irrespective of whether those games are skill- or chance-based. Legal specialist Ranjana Adhikari says the measure has effectively stopped real-money gaming (RMG) operations overnight. RMG made up roughly 80% of the sector’s revenue, and many leading operators have already ceased India operations or are exploring foreign markets and alternative business lines.
While the government promotes Esports, educational and casual games as permissible alternatives, PROGA places tight conditions on those segments — including recognition under the National Sports Governance Act and registration with the new Online Gaming Authority. The law also creates criminal penalties and grants blocking and extraterritorial powers intended to curb offshore operators, but enforcement will need coordinated action across law enforcement, ISPs, app stores and search engines.
Industry warnings include potential job and tax revenue losses (pre-PROGA estimates: >200,000 jobs, over 400 startups supported and about $2.3bn in taxes), investor confidence damage from limited consultation, and the risk that players will migrate to unregulated offshore sites. Adhikari argues a risk-based, co-regulatory framework would have better balanced consumer protection and innovation, and says clear Authority guidelines are essential if social gaming and Esports investment is to rebound.
