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India’s government to propose blanket ban on real-money gaming
India's government plans to propose a blanket ban on real-money gaming under new legislation, the Promotion and Regulation of Online Gaming Act, 2025. This ban targets both games involving skill and chance, driven by concerns over public harm. The proposed law may lead to significant financial impacts on the gaming industry, which saw $3.8 billion in revenue in 2023-24. Investors warn of catastrophic job losses if enacted.
Key points
- India plans to introduce the Promotion and Regulation of Online Gaming Act, 2025, which seeks to prohibit real-money gaming.
- The ban encompasses both skill-based and chance-based games, including their advertisements and financial transactions.
- Real-money gaming accounted for $2.4 billion of India's online gaming revenue of $3.8 billion in 2023-24, highlighting its significance to the industry.
- Public concerns over incidents of addiction and suicides related to gambling have prompted the government's move.
- Provisions in the draft legislation suggest severe penalties for both companies and endorsers of real-money gaming, including imprisonment and hefty fines.
- Investor backlash includes fears of $2.5 billion in write-offs and potential job losses for 1 million people in the sector.
- The Indian government previously imposed a 28% tax on online gaming, with rumors of a potential increase to 40%, exacerbating industry concerns.
Why it matters
- The proposed ban reflects a global trend toward regulating online gambling, focusing on user protection amid rising addiction concerns.
- Historically, regulatory actions like the self-regulation model in India in 2023 attempted to curb harm but faltered due to industry conflicts.
- Similar legislative efforts can be observed in other countries, as governments assess the impacts of real-money gaming on public health and safety.
- As a result of increasing scrutiny, many gaming startups are considering relocating operations abroad to escape stringent regulations.
The proposed ban on real-money gaming in India represents a significant shift in gaming regulations, driven by public safety concerns and the potential for widespread financial repercussions in a rapidly growing industry.