The big reset of the Online Gaming Bill forces an industry born in disruption to rethink what digital play means for a changing India.
Last week, India took the most dramatic of pivots by authorising The Promotion and Regulation of Online Gaming Bill, 2025, to implement new federal measures prohibiting Real Money Games (RMG).
A bill that had been worked on in the shadows by the Ministry of Electronics and Information Technology (MeitY) received formal approval from the Union Cabinet and Lok Sabha by the end of the week.
In the build-up to its publication, the Bill caught all Indian gaming stakeholders off-guard, as speculation ran rife regarding its text, and whether the government had chosen an outright ban of RMG or intended to modify ‘money gaming’ determinations once more.
Even those familiar with the corridors of power were surprised by the scope of the new Online Gaming Bill. Speaking to SBC, Rakesh Maheshwari, a former Policy Director at MeitY, openly admitted his surprise at the bill’s ultimate provisions.
“It’s a surprise to everyone,” Maheshwari reflected. “The expectation was that games of skill would be regulated, and only games of chance would face prohibition under a central law.”
Until now, discourse had focused on the government developing a centralised legal framework to help India’s multi-billion-dollar gaming sector thrive, and to support authorities in adopting common standards across the fragmented laws governing online platforms.
“It is a matter of surprise that any form of real money gaming has now been proposed to be prohibited through this bill, especially given the long-standing judicial consensus that distinguishes skill-based games from gambling.” Maheshwari noted
For a central law to override that principle so abruptly — without broader industry consultation or public debate — marks a significant and unexpected shift in regulatory thinking. What was anticipated was a framework for oversight, not a blanket ban.”
Enacted to “regulate, promote, and develop India’s online gaming sector, including e-sports, educational, and social games”, the Bill is recognised as the federal government’s first formal attempt to regulate Indian gaming via the exclusion of RMG. Yet, contrary to expectations, even games of skill (previously protected under constitutional rights) now face a ban if they involve monetary stakes.
Gaming stakeholders will closely review Chapters 5 to 7 of the Bill, which define the legal parameters for RMG prohibition. The Bill categorises RMG as: “any online game—whether based on skill, chance, or both—played by a user by paying a fee, depositing money, or other stakes, in the expectation of winning, which entails monetary or other enrichment in return.”
India… opportunity lies in uncertainty
As the status of gaming in India faces yet another fallout, we are reminded that this is a sector born in contention — one in which businesses have had to undergo constant reinvention to accommodate shifting legal boundaries. The latest challenge, in the form of a sweeping prohibition of Money Games, will be the most disruptive yet. But if there’s one certainty, it’s that Indian gaming is no stranger to recalibration.
Ranjana Adhikari, Partner at Shardul Amarchand Mangaldas & Co, believes that even in the face of sweeping restrictions, the sector’s resilience and adaptability offer grounds for cautious optimism.
“Let’s not ignore the fact that there is a huge demand for gaming and entertainment content in the country, and that’s not going away anytime soon,” she told audiences during an SBC Webinar shortly after the bill’s announcement.
Adhikari pointed to the existing base of over 400 start-ups in the Indian gaming ecosystem — many of which have already weathered regulatory headwinds, including the onerous 28% GST imposition on online gaming in 2023. She noted how companies quickly adapted by recalibrating their tax strategies and product offerings, often without a loss of market momentum.
Now, studios are actively assessing Plan B and Plan C, exploring legal alternatives and innovative monetisation models that fit within the new definitions. According to Adhikari, the key priorities for these businesses will be protecting brand equity and user bases, while navigating a landscape where revenue generation must align more closely with subscription models, in-app purchases, and non-monetary competition.
“Would it have an impact? Yes, initially,” she acknowledged. “But is it all lost? No. The Indian gaming industry has already proven it can pivot quickly to any intervention — and that innovation isn’t just reactive here, it’s cultural.
It’s done so in the face of taxation challenges, advertising restrictions, and constant federal scrutiny. What sets this industry apart is that innovation isn’t just reactive here, it’s cultural. It’s embedded in how studios design experiences, engage users, and adapt to new rules of play. That spirit is what will carry the sector through this phase, even if it looks very different on the other side.”
No room for copycat models
At the coalface, Engineer and Gaming Consultant Jaydeep Chakravartty agrees that Indian stakeholders should maintain a positive outlook. However, he notes that the path laid by the new Bill is much tougher to scale.
In the past, most gaming companies managed to adjust to tax hikes or compliance rules such as the 2023 GST rollout by modifying the mechanics of games. But, Chakravartty warns, this law is of an entirely different nature. It doesn’t impose new taxes or rules within the RMG category — it eliminates the category altogether.
“Let’s be clear — this isn’t just a regulation that forces minor changes,” said Chakravartty. “This is a full-fledged redefinition of what’s legal and what’s not. You don’t just tweak pricing or payout mechanisms — you have to fundamentally re-engineer your game, your monetisation flow, your platform architecture. It’s a product overhaul.”
“This is a complete ban on core real money offerings, especially for platforms in fantasy sports, rummy, poker — genres that have made up the backbone of Indian online gaming revenue,” he noted. “Sure, there’s room to pivot, but the ceiling on monetisation is going to be much lower under the permitted formats like social or subscription-based gaming.”
Due to the depth of the Bill and its prohibitive clauses, Chakravartty observed that studios and platforms are no longer just tweaking business models, but re-evaluating viability itself.
“It’s not zero revenue — but it’s a different kind of business altogether. The scale, user acquisition models, player motivation — all of that changes,” Chakravartty said. “We’re talking about building a new market from the ground up, within a legal box that’s still being defined.”
When asked whether India might follow the US-style gaming model, where studios offer event contracts, prediction markets, or sweepstake-based games as workarounds to gambling laws, Chakravartty was quick to refute the idea.
“That kind of model is deeply ingrained in US gaming culture and legal history — India doesn’t have the same sweepstakes tradition,” he explained. “More importantly, the bill here is very clear about prohibiting monetisation tied to chance or reward, regardless of how creatively it’s framed. So trying to copy-paste a US workaround isn’t going to pass legal muster.”
Chakravartty cautioned that while innovation is possible, it must be grounded in India’s specific regulatory, cultural, and judicial context not imported from models designed for completely different legal ecosystems.
“There’s no shortcut here. Companies will need to rethink product design not just technically, but legally and culturally. And they’ll have to do it with a moving goalpost as the government and new authority start issuing clarifications.”
End goal of a calmer status
With the seismic implications of the new Online Gaming Bill, it remains far too early to say whether this legislative overhaul will ultimately be viewed as a success — or as an overcorrection that stifled innovation.
Ranjana Adhikari cautioned against rushing to judge the bill’s effectiveness in its early days. The law, she said, requires deep structural adjustments, not just from RMG platforms, but across the entire gaming ecosystem — including advertisers, payment providers, streaming platforms, and consumer engagement models.
“We still need to work out a lot of contours, even within the so-called permissible categories like social gaming or eSports,” Adhikari said. “Studios will need to innovate, yes, but they’ll also need to collaborate with the government to define what’s compliant. That kind of transition can’t be judged in weeks — it will take years.”
Ultimately, how this bill reshapes Indian gaming depends not only on legal challenges and market pivots, but on whether the government can nurture an ecosystem that rewards creative, ethical, and sustainable digital play.
Rakesh Maheshwari offered a mixed outlook of positivity and caution, as the parameters have now been set to lay the groundwork for Indian gaming to finally shift from its constantly disruptive status.
“In the short term, yes — it will cause disruption. But over time, I believe this bill will create the foundation for a culturally-aligned, innovation-driven gaming industry,” he said. “The laws may be prohibitive today, but if implemented with transparency and agility, they could lead to a new kind of gaming economy — one that balances growth with responsibility.”
“Whether that balance is ultimately achieved — and whether the Indian market emerges more unified, ethical, and innovative — will define the legacy of this landmark bill by decade’s end.”
