India online gambling ban could drive punters to black market
Summary
India’s parliament has passed the 2025 Promotion and Regulation of Online Gaming Bill, criminalising real‑money online gaming, its promotion and advertising, and blocking banks and payment providers from processing transactions for cash games. The law carries fines and up to five years’ imprisonment. Supporters say it protects citizens from addiction and financial harm; critics warn it will push players to unregulated offshore sites, damage compliant domestic companies and prompt constitutional and commercial legal challenges. Major industry players such as Dream11 expect severe revenue hits, and some firms are already forecasting a surge in illegal offshore activity.
Key Points
- The 2025 bill criminalises real‑money iGaming, promotion and advertising, and restricts payment processing for cash games.
- Penalties include fines and up to five years in jail for offences under the new law.
- Government justification centres on addiction and large financial losses among players; ministers argue the law protects families and public welfare.
- Critics — including industry groups and legal experts — say the ban will shift bettors to offshore and illegal platforms using VPNs and proxy payments, increasing consumer harm.
- Economic fallout: Dream11 expects a dramatic revenue decline and has pulled sponsorship deals; the law risks dismantling a multibillion‑dollar local industry and deterring investment.
- Legal challenges are already underway (eg A23) and further litigation is likely on grounds including constitutional rights and proportionality.
Content summary
The bill was passed quickly and with limited public debate; ministers highlighted social harms and rising losses estimated at $2.3bn a year across hundreds of millions of people. Industry leaders and players say the law will not stop gambling behaviour — instead, many predict migration to offshore, unregulated sites that offer aggressive incentives to Indian users. Observers note the industry failed to form a unified self‑regulatory front, leaving compliant businesses vulnerable. The government says it will promote non‑gambling online games such as esports and social games, but enforcement against offshore operators will be difficult, especially given tools like VPNs and proxy payments.
Context and relevance
This development is a major regulatory shift for one of the world’s largest internet populations and directly affects gaming operators, payment processors, advertisers, regulators and investors. It highlights a trend of stricter online gambling controls globally, and raises immediate questions about cross‑border enforcement, AML, consumer protection and the future of India’s domestic iGaming market. Expect litigation, regulatory tussles and a probable short‑term boom in grey‑market activity that will test both technology and policy responses.
Why should I read this?
If you work in gaming, payments, law or invest in the sector — this matters. The ban reshapes the market overnight and will affect deals, revenues and compliance obligations. Seriously: read it now — we’ve cut through the noise so you can see the fallout and what to watch next.
Source
Source: https://igamingbusiness.com/gaming/gaming-regulation/india-online-gambling-ban-grey-market/