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The complete ban imposed by a new law on real money gaming is one clear move in the right direction. There have been many arguments floated since this sudden clampdown on how a new and nascent industry is being killed, how jobs will be lost, how investor confidence will be eroded and how games of skills are different from games of chance.
45 crore people were negatively affected by online money games and faced a loss of more than Rs. 20,000 crores
On the other hand, is the trap in which millions of ordinary Indians had already landed, lured by high voltage ads that made deep inroads into homes and pockets of people who in the end had little chance of winning – and yet signed up for this bad bargain on what essentially were misleading if not false promises. Such was the impact that ads began broadcasting in local languages, casting their net deep into the heartland of India and inviting housewives to play rummy, of cash awards that awaited and of bonuses that they could use to make more money while sitting at home.
A distressing part of the exercise, all in the name of legitimate business activity, was celebrities and influencers using their popularity to advertise these “games”. Give some time, and the modern-day marketing machine of companies with deep pockets could turn a pastime act into a ruinous activity for citizens.
Key words like "instant win" and "no pay" invite visitors to venture in and try their luck. Gaming ventures have been promoted by film stars, cricketers and social media influencers who may have helped bring in players
All this has now stopped since the Promotion and Regulation of Online Gaming Act 2025 took effect more than a month ago, enforcing a blanket ban on Real Money Gaming (RMG). Most of the top gaming companies have paused all RMG operations, putting on hold their pay-to-play games that were big money spinners. But companies have taken the issue to court broadly arguing, among other issues, that the law violates the fundamental freedom to conduct business, has caused losses and distress, and does not respect the distinction between a game of skill and a game of chance. Several petitions were filed in various High Courts and are now consolidated and slated to be heard before the Supreme Court of India.
The Indian legal system was always clear. Gambling and betting are already restricted under the Bharatiya Nyaya Sanhita, 2023, and legislations in States across India. The online space, however, remained unregulated before August.
Give some time, and the modern-day marketing machine of companies with deep pockets could turn a pastime act into a ruinous activity for citizens
Following the Gaming Act companies have complied and closed their RMG operations but others running offshore platforms have reportedly stepped in to let gamers play on so it may need a lot more effort to bring change in what has been an unchecked domain in the news only recently but quietly in play for over two decades.
Consider that this space has grown from the early 2000s, moving from internet cafes and LAN gaming centers that provided platforms for multiplayer gaming, to the proliferation that we see today. It would take a lot more to wean away or if that is not possible, to protect millions of people who may still be drawn to some platform or the other available globally.
With the ban, players who have been engaged in what was already a risk-filled, unstable sphere, are said to be turning to the darker by-lane of unsafe offshore gambling
According to industry estimates, the number of Indian online gamers has grown from 360 million in 2020 to over 500 million in 2024. Many more people today are using smartphones and have access to the internet. Most Indian players prefer mobile gaming to using laptops, tablets or other smart devices. A report last year by 1Lattice, a technology-enabled market intelligence firm, said that India accounts for around 20% of mobile game downloads across the world, with 9.5 billion games downloads in 2023.
The market value of the online games industry has been steadily growing. This has placed India as the most significant global market for mobile game installs. And as mobile gaming has turned into a top social activity, it has also deepened the problem of real money gaming in India.
Gambling addicts play not to win but to keep playing for as long as possible even at the cost of exhaustion, both physical and economic
With the ban, players who have been engaged in what was already a risk-filled, unstable sphere, are said to be turning to the darker by-lane of unsafe offshore gambling. Like other forms of addiction, they are unable to abstain. They are, as Natasha Dow Schull says in her book ‘Addiction by Design’, drawn to playing.
Gambling addicts play not to win but to keep playing for as long as possible even at the cost of exhaustion, both physical and economic, according to Schull, who draws on 15 years of field research in Las Vegas to show how the mechanical rhythm of electronic gambling puts players in a trance-like state called the “machine zone” in which everyday worries, social demands and general awareness fade away.
Just like other forms of addiction, these gamers look for options to play on. So, while companies have halted their money-centred games, a number of offshore betting and gambling platforms have reportedly replaced them along with illegal matka networks, and fly-by-night operators who function without safeguards, customer protection or taxation.
The All India Gaming Federation (AIGF), the apex industry body for online gaming in India, has called for a national framework to “curb the menace of offshore gambling”. AIGF, which represents 120 members across all gaming formats, estimates that offshore illegal betting platforms are already causing GST revenue losses of about $2.5 billion annually. Indian gaming companies have had to pay 28% GST for their real money operations since October 2023.
While companies have halted their money-centred games, a number of offshore betting and gambling platforms have reportedly replaced them along with illegal matka networks, and fly-by-night operators who function without safeguards, customer protection or taxation
For years this has been a heady world filled with promises of finding millions behind spinning wheels, under decks of cards or ahead of rolling pairs of dice. Key words like "instant win" and "no pay" invite visitors to venture in and try their luck. Gaming ventures have been promoted by film stars, cricketers and social media influencers who may have helped bring in players.
All this when gaming companies have been maximising profits while a large number of players have been driven to debt and financial ruin. Psychiatrists, counsellors and helplines are witnessing a lot more calls from online game players who seem to be mostly under 40 and range from office goers and businessmen to students. They find the trend has grown due to the easy availability of more mobile apps.
India accounts for around 20% of mobile game downloads across the world, with 9.5 billion games downloads in 2023
After a few wins players start looking for bigger returns and inevitably make losses which pile up. 1Life, a suicide prevention helpline said that of the calls it has received from those in financial distress, 60% were from online betting losses. The Roshni Trust of Secunderabad which provides a suicide prevention helpline receives many calls from addicts but does not give specific data about how many of these calls are from online gaming addicts.
The numbers are shocking but not surprising. Speaking in the Rajya Sabha, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said that according to an estimate, 45 crore people were negatively affected by online money games and faced a loss of more than Rs. 20,000 crores because of it. Ordinary citizens need protection, and marketing needs some controls in such cases. This was one case where the government action was needed and has been swift and decisive.