REAL-MONEY GAMING IN INDIA
O n August 22, 2025, the Promotion and Regulation of Online Gaming Act, 2025 (“Act”) received Presidential assent in India, paving the way for its notification as law. The Act was introduced by the Central Government through the Ministry of Electronics and Information Technology (“MeitY”), the nodal ministry in charge of online gaming in India. 1 Despite its title, the Act prohibits all online real money games, imposing penalties of up to three years imprisonment and INR 1 crore fines 2 (approx. US$113,000) for offering such games. However, it also proposes to legitimize the e-sports and social games industries, by recognizing and regulating them. Given the wide array of monetization models, there remains considerable uncertainty around the classification of games as permissible online social games versus prohibited online money games. There are also significant ambiguities in relation to the registration framework for online social games and e-sports under the Act and accompanying Draft Rules. This Act marks a significant departure from the Central Government’s previous stance which was to regulate, instead of prohibit, the online real money skill gaming industry. It was introduced without any prior public or industry consultation, blindsiding India’s multi-billion dollar real money gaming industry. Within weeks of the Act’s introduction, major real money skill gaming operators ceased real money operations, pivoting to free to play and freemium models instead. The Act therefore hit a sector with 90+ million paying users worth US$3.7 billion in 2024, and which was projected to reach US$9.1 billion by 2029. 3 The Act was immediately challenged before several High Courts 4 primarily on the grounds that it sought to ban real money games
of skill, which are constitutionally protected activities under freedom of trade and business guarantees. 5 These appeals have been consolidated before the Supreme Court. 6 The Supreme Court has not granted any interim (i.e., temporary) reliefs and has indicated that the challenge will now be placed before a three-judge Bench for hearing in January 2026. On October 02, 2025, the Central Government introduced the draft Promotion and Regulation of Online Gaming Rules, 2025 (“Draft Rules”), the procedural rules for implementation of the Act, for public consultation. Upon feedback being collected, the final Rules and the Act will be notified as law. At present, it is unclear when that will be, but it is expected to be imminent. 7 In this article, we examine the implications of the Act on operators, players and the overall gaming ecosystem in India. To begin with, we provide a brief overview of the existing regulatory framework for gaming in India and trace the key developments that culminated in the introduction of the Act. Centre / State regulations, and the evolution of India’s gaming laws In India, legislative powers are divided between the Central (federal) Government and the States. The legislative power to enact laws on betting and gambling, 8 including on games of skill, 9 vests with the State Governments. Pursuant to this power, State Governments have introduced State-specific laws, most of which prohibit gambling, i.e., betting or wagering on games of chance, while exempting games of skill from these prohibitions. Games of skill have been recognized as constitutionally protected activities by the Supreme Court of
1 MeitY is the Central Ministry in charge of ‘matters relating to online gaming’ under the Government of India (Allocation of Business Rules), 1961 2 Promotion and Regulation of Online Gaming Act, 2025, s. 9 3 https://brandequity.economictimes.indiatimes.com/news/research/indias-online-gaming-sector-may-cross-usd-9-bn-by-2029-re- port/119250363; last visited 22 November 2025 4 Head Digital Works Private Limited & Anr. v. Union of India , W.P. (Civil) No. 26233/2025, Karnataka High Court; Bagheera Carrom (OPC) Pvt. Ltd. v. Union of India , W.P. (Civil) No. 13449/2025, Delhi High Court; Clubboom 11 Sports & Entertainment Private Limited v. Union of India , W.P. (Civil) No. 34900/2025, Madhya Pradesh High Court. 5 State Of Bombay vs R.M.D. Chamarbaugwala And Ors . AIR1956BOM1 6 T.C.(C) No. 000133/2025 Head Digital Works v Union of India 7 https://www.thehindu.com/business/real-money-gaming-ban-to-be-formally-notified-on-oct-1-vaishnaw/article70067293.ece; last visited 22 November 2025 8 Entry 34, List II, Constitution of India 9 All India Gaming Federation vs The State of Karnataka & Or s, WP 18703/2021, Junglee Games India Pvt. Ltd. & Anr. v The State of Tamil Nadu & Ors , WP Nos.18022, 18029, 18044, 19374, 19380 of 2020, 7354, 7356 and 13870 of 2021
IMGL MAGAZINE | DECEMBER 2025
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