From boom to ban: India outlaws online betting apps, industry in turmoil
Federal IT Minister Ashwini Vaishnaw told parliament that online money games had harmed 450 million Indians, caused losses of more than 200 billion rupees, and led to “depression and suicides”
Kartik Srinivas (name changed) still recoils at the memory of online betting.
What started as an attempt to earn quick money soon turned into a five-year addiction, costing the 26-year-old more than 1.5 million rupees ($17,000) and leaving him in deep debt.
His experience mirrors the darker side of India's Real Money Games (RMG) sector, where millions placed wagers on poker, fantasy sports and card games through apps and platforms. Days ago, India passed a federal law banning these games altogether, reports the BBC.
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Under the new law, offering or enabling such services can lead to three years in jail and fines up to 10 million rupees, while promoting them carries a penalty of two years and 5 million rupees. Users, however, will be treated as victims rather than offenders.
Federal IT Minister Ashwini Vaishnaw told parliament that online money games had harmed 450 million Indians, caused losses of more than 200 billion rupees, and led to "depression and suicides". The source of these figures remains unclear.
Before the ban, India had around 400 RMG startups generating $2.3 billion in annual taxes and employing more than 200,000 people. Companies like Dream11 and My11Circle had grown into billion-dollar giants, with Dream11 even sponsoring the national cricket team.
Industry leaders have called the move a "massive setback". Mumbai-based gaming lawyer Jay Sayta said, "There was a need for some regulation in the industry, but the law was introduced in haste and without consultation."
Critics argue the law unfairly treats "games of skill" – such as fantasy sports, which courts have previously upheld as legal – the same as "games of chance". India's Supreme Court in 2022 classified fantasy sports as skill-based, but the new legislation bans both.
Smrita Singh Chandra, former policy communications head at Dream11, wrote on LinkedIn that the ban was imposed "without transition, nuance, or consideration of economic realities".
Gaming federations warn the ban will push players towards unregulated offshore platforms, illegal betting networks and local bookies operating on WhatsApp and Telegram.
"At least with these apps there was some accountability – without them, things might get worse," said Srinivas.
Some experts support the government's stance, saying platforms often use opaque algorithms and bots designed to ensure players lose. Vishal Gondal, co-founder of nCore Games, argued, "These games essentially amount to gambling. Calling them games of skill is like branding alcohol as fermented juice."
For now, India's once-thriving real money gaming industry has ground to a halt — leaving investors, companies and players uncertain of what comes next.
