NEW DELHI : The Promotion and Regulation of Online Gaming Bill, 2025, which was passed by the Rajya Sabha on Thursday, is on track to become a law unless the President of India recommends it to a standing committee.
NEW DELHI : The Promotion and Regulation of Online Gaming Bill, 2025, which was passed by the Rajya Sabha on Thursday, is on track to become a law unless the President of India recommends it to a standing committee.
Mint answers key questions about the bill, which is set to transform the games that once sponsored India's biggest sporting events.
Is the online gaming ban finalized now?
The bill will become an Act only after the President of India approves it, and the Centre notifies and brings it into effect. In some cases, this process can drag on for years. However, senior government officials have alluded that, subject to the president's clearance, the law may come into force within the next three months.
This would include a period during which the law's implementation rules will be drafted, mostly by an interministerial committee. However, following this, the government may give the industry time to interpret and implement the law, which could take a few more months.
What should online gaming apps do now?
On Thursday, Probo, an online fantasy gaming platform that allowed people to play casual games for money, started alerting users that it is no longer accepting funds and that players should withdraw their money immediately.
Other titles, while allowing deposits and withdrawals, have stopped new user registrations. All of this is in preparation for what the apps believe will largely be an imminent ban.
Senior government officials involved in the process have alluded that the Centre's crackdown on online games that involve user money will not change in stance, and companies may be given additional duration to make 'pivots'—or complete changes in their core product.
How significant could the impact be?
Gaming investment firm Lumikai's report from November 2024 said onlin real-money games generated $2.4 billion in annual revenue in 2023-24, or 63% of India's entire gaming revenue. While companies have made varying claims, estimates from officials within the government said the Centre would likely lose around $2 billion annually in goods and services tax (GST) collections. Companies have said 200,000 jobs will be lost, but the Centre claims its push for e-sports will also create many roles.
Is a 'pivot' even possible for these apps?
Yes, and no. Prima facie, online fantasy games can be played without the involvement of cash. However, this would mean that companies will likely have to depend on users being willing to pay for games or run advertisements within games to generate revenue.
This, however, may not be as big an opportunity. Dream11, the biggest in the industry, earned over $730 million in annual revenue in 2023-24. In comparison, the entire money gaming industry generated $600 million in advertising revenue in the same fiscalyear. While business models may persist, India has remained a difficult market to monetize.
Will Indian money gaming firms move abroad, too?
That is an option as well. Galactus Funware, which runs the money gaming series Mobile Premier League, began focusing on strategic international markets that may be more lucrative for business. Markets such as the US, China, and Japan produce significantly higher financial returns. But most online games are hyperlocalized in nature, which means that breaking into an international market would need heavy investments and a close understanding of it. This typically takes years to develop, without even taking into account incumbents in a local market that already hold dominant market share.
Still, international expansion will definitely play a role in how the sector seeks to survive.