Prime Minister Narendra Modi has stood firmly behind the recently enacted Promotion and Regulation of Online Gaming Act, 2025, calling it a “major decision” aimed at safeguarding young people from the dangers of online gambling. Speaking in New Delhi during an event with teachers on September 4, he highlighted rising cases of debt, suicides, and fractured families tied to online betting-style platforms.
“Gaming in itself is not bad, but gambling is,” he stated, emphasizing that while digital play has potential, monetary wagering has proven destructive, especially among students and young professionals. Modi pointed out that many platforms disguise themselves as harmless games but, in reality, lure users into gambling. “Unfortunately, many online applications are portrayed as games, but they incorporate gambling. Several families have been destroyed due to the addictive nature of such games and the financial difficulties they cause,” he warned.
Modi also defended the government’s resolve, noting, “Big powers never wanted such laws to be made and for gambling to be banned. But our government has the political will and cares about the children in the country.” He encouraged schools to provide guidance about gaming as a career path while stressing India’s ability to create culturally rooted content that could resonate globally. “India has many creative minds who can develop new games based on our stories and traditions. We can capture a share of the global gaming market,” he said.
Key Provisions and Early Fallout
The Online Gaming Act prohibits all money-based online games, regardless of whether they are skill- or chance-driven, while promoting esports and social gaming without cash stakes. It also bans advertisements for real-money games, prevents financial institutions from processing related transactions, and allows authorities to block illegal services under the Information Technology Act, 2000. Violations may bring penalties of up to three years in prison or fines as high as ₹1 crore ($120,481).
Union IT Minister Ashwini Vaishnaw, who led the legislation, explained that the law aims to curb predatory gambling while still supporting innovation in esports and non-monetary play. He cited reports estimating that nearly 45 crore Indians have suffered financial losses from online money games, with combined damages exceeding ₹20,000 crore ($2.41 billion).
The rollout of the ban has already disrupted the fintech and payments industry. With leading gaming firms suspending real-money services, payment providers have seen sharp declines in transaction volumes. Analysts estimate that gaming-linked payments previously generated around ₹1,500 crore ($170.7 million) in annual revenue for fintech companies, income that has now been abruptly halted.
Meanwhile, Vaishnaw convened meetings with industry stakeholders, including game developers, esports associations, and payment firms, to discuss fund security and compliance. He acknowledged the need for clarity on hybrid formats not directly addressed by the Act, stating, “If need be, we will bring amendments to the new law.”
Rising Legal Challenges and Constitutional Debate
Even as the government finalizes rules and FAQs expected within weeks, the Act has already been dragged into court. Bagheera Carrom (OPC) Private Limited filed a petition before the Indian High Court, arguing that the law violates constitutional protections under Articles 14, 19, and 21. The company contends that banning all real-money games, including skill-based ones, is arbitrary and disproportionate. It also disputes whether the central government has the authority to legislate in this area, since “betting and gambling” are listed under state powers in the Constitution.
Similarly, Head Digital Works, operator of A23, has challenged the law in the Karnataka High Court, raising concerns about excessive government control and its impact on legitimate businesses. At the same time, the Supreme Court is preparing to hear a transfer plea from the Centre, seeking to consolidate challenges from multiple states into one proceeding. The government has requested a stay on all high court hearings until the transfer decision is made.
Wider Implications and State-Level Responses
While the central law dominates headlines, some states are exploring alternatives to boost revenue. Maharashtra, for example, is considering reforms to its lottery sector. Under the proposal, ticket buyers who do not win would have their money held by the state and returned with interest after three or five years, offering a novel way to maintain public trust in state-run games of chance.
Across India, the implications of the 2025 Act are unfolding rapidly. On one hand, the government positions the move as essential to protecting families and preventing exploitation. On the other hand, industry groups and operators warn that a blanket ban risks undermininginnovation and prompting users to migrate to offshore or unregulated platforms. The coming weeks, marked by legal hearings, stakeholder consultations, and the release of official rules, will determine the extent to which this sweeping law’s effects will be far-reaching.
Sources:
Gaming itself is not bad but PM Modi on why govt brought law on online gaming, hindustantimes.com, September 4, 2025.