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  • 25 Aug, 2025

India’s Parliament Bans Online Gambling: A Major Move Against Predatory Gaming

India’s Parliament Bans Online Gambling: A Major Move Against Predatory Gaming

India’s parliament has passed a landmark bill that bans online gambling, targeting platforms that have reportedly drained $2.3 billion annually from 450 million citizens. The sweeping law aims to curb addiction, financial distress, and social harms linked to online betting and fantasy sports games.

The New Law and Its Scope

The Promotion and Regulation of Online Gaming Bill, passed by both houses of parliament, criminalizes the offering, promotion, and financing of online gambling games such as card games, poker, and fantasy sports. Those found guilty could face up to five years in prison. The bill is awaiting formal ratification by the president before it officially takes effect.Crucially, the ban hits popular homegrown platforms, including India’s thriving fantasy sports sector. It notably affects Dream11, the country’s largest fantasy sports platform, which had been named the official three-year lead sponsor for India’s national cricket team in July 2023.


Impact on Cricket Sponsorship and Industry Response

Dream11’s logo had been prominently displayed on Team India jerseys, but the future of this sponsorship is now uncertain. The Board of Control for Cricket in India (BCCI) has yet to announce any decision regarding Dream11’s role following the bill’s passage. BCCI Secretary Devajit Saikia emphasized, “If it’s not permissible, we’ll not do anything… The BCCI will follow every policy of the country that is framed by the central government.”Dream11 released a statement acknowledging the bill’s passage, confirming that “cash games and contests have been discontinued,” but encouraged users to “stay tuned” for updates. Meanwhile, other online games remained accessible pending the president’s approval.


Reasons Behind the Ban

The Indian government cited severe social and financial consequences from the rapid growth of online gambling platforms. According to official figures, about one-third of India’s population has lost money gambling online. The government linked these platforms to addiction, widespread financial distress, fraud, money laundering, and even terrorism financing.Officials highlighted that the legislation is designed to protect citizens from “predatory gaming platforms” that exploit users with misleading promises of quick wealth. Minister of Technology Ashwini Vaishnaw clarified that the law distinguishes between harmful gambling and legitimate digital entertainment, such as e-sports and educational games.


Exceptions and Government’s Vision for Digital Gaming

While the bill bans gambling and fantasy money games, it carves out exceptions for e-sports and educational games, which the government intends to promote as part of India’s growing digital economy. Prime Minister Narendra Modi emphasized that the law will “encourage e-sports and online social games” while protecting society from the harmful effects of money games.The government’s stance is that constructive digital recreation should thrive, but betting and gambling that exploit users must be stopped.


Industry Concerns and Future Outlook

Industry groups have expressed concerns that a total ban might push players toward illegal offshore gambling sites, advocating instead for regulation and taxation. However, supporters of the ban argue that the social costs of online gambling are too high to allow continued operation, pointing to addiction, suicides, and financial ruin.As India moves forward with this legislation, the balance between fostering digital innovation and protecting citizens from harm remains a key challenge for policymakers and the gaming industry alike.


Summary

India’s parliament has enacted a stringent ban on online gambling, criminalizing games involving real money betting and fantasy sports. With penalties of up to five years’ imprisonment, the law targets platforms like Dream11, raising questions about sponsorship deals and the future of India’s online gaming sector. The government aims to promote safe digital entertainment while combating the social and financial harms caused by predatory gambling.

 

Syed Haider

Syed Haider

BMM - MBA