Tue Aug 26 03:00:00 UTC 2025: Okay, here’s a news article summarizing the provided text:
**Headline: India Bans ‘Real Money Games’ Citing Addiction and Financial Risks; Industry Fears Job Losses**
**New Delhi, August 26, 2025:** India has enacted the Promotion and Regulation of Online Gaming Bill, 2025, effectively banning “Real Money Games” (RMGs) across the country. The legislation, passed swiftly by the Lok Sabha and Rajya Sabha, and receiving Presidential Assent on August 22nd, aims to combat the growing problem of online gaming addiction and associated financial hardship.
Government data indicates Indians lose approximately ₹15,000 crore annually on RMGs. The World Health Organization (WHO) has linked RMGs to compulsive behavior, psychological distress, and disruption of family life. The government pointed to 32 reported suicides in Karnataka in the past 31 months linked to online gaming addiction as evidence of the severity of the issue.
The new law categorizes online games into e-sports, social gaming, and RMGs. While promoting e-sports and social gaming, the Act targets all forms of RMGs and their advertising. RMGs are defined as games played for a fee or with the expectation of winning money, irrespective of whether the game relies on skill, chance, or both. This definition encompasses popular games like Poker, Rummy, Fantasy Cricket, and Ludo.
The RMG industry, however, is sounding the alarm. Industry representatives claim the ban will threaten over two lakh jobs across 400+ companies. Celebrities such as Ranbir Kapoor, Aamir Khan, M.S. Dhoni, Hrithik Roshan and Sourav Ganguly endorse such gaming platforms.
Offering or facilitating RMGs will now carry a penalty of up to three years imprisonment and a fine of up to ₹1 crore. Unlawful advertising faces up to two years imprisonment and a ₹50 lakh fine.
The government has tasked the Indian Computer Emergency Response Team (CERT-IN) with blocking offending apps, and may involve Interpol in pursuing offshore operators. IT Minister Ashwani Vaishnaw emphasized that no penalties have been prescribed for individual players.
A regulatory authority will be established to oversee online gaming, with the central government providing funding to promote social gaming.
The move follows previous attempts to regulate the sector. In 2023, the IT Ministry amended rules requiring gaming firms to comply with KYC norms and implement parental controls. The government stated that irrefutable proof exist that the algorithms of online gaming firms do not allow for any user to emerge as a net winner in the long run.
The Act also highlights concerns about financial fraud, money laundering, tax evasion, and the use of opaque algorithms designed to manipulate users. The report states that there is unchecked expansion of RMGs is linked to financial fraud, money laundering, tax evasion and many other unlawful activities. It also states that gaming firms rely on opaque algorithms designed to manipulate user engagement, and that games can also be operated by bots or undisclosed agents undermining fairness and transparency. Additionally, the Act says that gaming firms operate from offshore jurisdictions bypassing domestic laws, undermining state level regulations and presenting significant enforcement challenges in terms of extra-territorial jurisdiction and interstate inconsistences.
However, the Act faces potential legal challenges. Virag Gupta, an advocate at the Supreme Court, notes the law’s failure to distinguish between games of skill and chance, potentially violating the constitutional right to trade and occupation. The Supreme Court is currently considering cases related to the taxation of online gaming and whether certain games should be classified as skill-based or gambling. It has already been requested to consider the GST dispute on online gaming.
Several states, including Telangana, Andhra Pradesh, and Tamil Nadu, had previously implemented bans on online gaming. With online gaming now subject to a uniform 28% GST on the entire entry fee/deposit, and without clear distinctions between games of skill and chance, and potential legal challenges, the future of the online gaming industry in India remains uncertain.
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