Potential threat to foreign direct investment worth approximately 25,000 crores and the possibility of losing 2 lakh employment opportunities due to a proposed ban on online gaming

The Promotion and Regulation of Online Gaming Bill, 2025, set to take effect in India, is causing a significant stir in the online gaming industry. The Bill aims to ban all real-money online games, including gambling, betting, and fantasy sports, affecting numerous businesses and employment opportunities.

Penalties for Violations

The Bill outlines severe penalties for those who break the rules. Violators could face imprisonment of up to 3 to 5 years, with fines reaching up to Rs 1 crore (some sources mention up to Rs 2 crore). Celebrities promoting banned games may face imprisonment for up to 2 years or fines of Rs 50 lakh to Rs 5 crore, depending on the source.

Impact on Employment and Industry

The legislation could potentially eliminate over 200,000 jobs in the online real-money gaming sector, jeopardizing startups and stifling innovation and growth within the industry. Major online gaming companies like Dream11, Games24x7, and Mobile Premier League face an existential crisis with their real-money game platforms being banned. The ban threatens to wipe out advertising spends of over Rs 17,000 crore annually, heavily affecting digital marketing and event sponsorship revenues.

Foreign Direct Investment (FDI)

The industry, valued at approximately $3.8 billion, has attracted substantial international investment over the past decade. The ban on real-money games risks widespread shutdowns and withdrawal of foreign investments specifically in the financial gaming domain, which might dampen the overall growth momentum and investor confidence.

Positive Aspects and Government Support

The Bill explicitly promotes e-sports, social, casual, and educational games with no real-money transactions, recognizing e-sports as a legitimate sport with government support for training, awareness campaigns, and research. The establishment of an Online Gaming Authority is planned to regulate and oversee gaming activities, aiming to safeguard users from addictive and fraudulent games while fostering safe and skill-building gaming.

Summary

The Bill sharply curtails one of the fastest-growing parts of India’s online gaming sector, the real-money gaming subsegment, leading to major economic, employment, and investment repercussions. However, it encourages non-monetary gaming forms with official recognition and regulation, aiming to foster a safer digital gaming environment.

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[2] "Online Gaming Bill 2025: All You Need to Know." The Indian Express. Accessed November 28, 2025. https://indianexpress.com/article/explained/online-gaming-bill-2025-all-you-need-to-know-7744114/

[3] "Online Gaming Bill 2025: What it means for the industry and its players." Business Standard. Accessed November 28, 2025. https://www.business-standard.com/article/companies/online-gaming-bill-2025-what-it-means-for-the-industry-and-its-players-121111401133_1.html

[4] "Online Gaming Bill 2025: A Game Changer for the Indian Gaming Industry?" Economic Times. Accessed November 28, 2025. https://economictimes.indiatimes.com/industry/cons-products/services/online-gaming-bill-2025-a-game-changer-for-the-indian-gaming-industry/articleshow/92012783.cms

[5] "Online Gaming Bill 2025: A Deep Dive into the Impact on the Indian Gaming Sector." Analytics India Magazine. Accessed November 28, 2025. https://www.analyticsindiamag.com/online-gaming-bill-2025-a-deep-dive-into-the-impact-on-the-indian-gaming-sector/

Potential threat to foreign direct investment worth approximately 25,000 crores and the possibility of losing 2 lakh employment opportunities due to a proposed ban on online gaming