India to ban ‘harmful’ online money games, threatening US$3.6 billion industry
Gaming firms may challenge the law in the Supreme Court, arguing it was passed without consultation and shouldn’t apply to skill-based games
The sudden ban has shocked an industry backed by venture capital firms like Tiger Global and Peak XV Partners and which was set to be worth US$3.6 billion in India by 2029.
Executives fear imminent job losses and a complete shutdown of many app-based businesses, which attracted billions from foreign investors.
The bill prohibits “harmful” online money gaming services, advertisements and financial transactions related to them, with the government also citing the psychological harm they can cause.
“It is the duty of the government and the parliament to take strict action against social evils, which keep erupting time and again,” federal IT minister Ashwini Vaishnaw said in parliament on Thursday.
India’s upper house of parliament passed the Promotion and Regulation of Online Gaming Bill 2025 after the lower house cleared it earlier this week. The president must sign the bill into law, which, although there is no set date, is considered a formality.