Indian Online Betting Companies Shut Down Amid New Ban
Online gaming companies in India have started shutting down their real-money operations after the Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, which imposes a blanket ban on all forms of monetary wagering in digital games.
LISTEN TO THIS ARTICLE:The bill, passed by the Lok Sabha last Wednesday and the Rajya Sabha on Thursday, prohibits the offering, operation, and facilitation of online money games, including fantasy sports, poker, and rummy. It introduces penalties such as up to three years' imprisonment and fines of ₹1 crore for operators. The legislation, now enacted after presidential assent, marks a seismic shift in India's booming gaming sector, which accounts for 20% of the world's users and generates ₹31,000 crore annually.
The ban affects popular companies in the jurisdiction, like WinZO, Mobile Premier League (MPL), Nazara Technologies, and Dream Sports (parent of Dream11), which have stopped their real-money offerings to comply with the new policy. Nazara's associate, Moonshine Technologies, ceased operations as a precautionary measure, leading to a 4.13% drop in its stock. WinZO withdrew affected offerings from Friday, while Dream Sports shifted Dream11 to free-to-play.
In an official statement, MPL stated that it is suspending all gaming offerings involving money on the MPL platform in India and no longer accepting deposits. However, customers will be able to withdraw their remaining funds on the platform.
Why was the Ban Imposed?
Government officials cite rising addiction, financial fraud, money laundering, and suicides linked to real-money games as the main reasons behind the prohibition.
450 million people are negatively affected by online money games and faced a loss of more than Rs. 20,000 crores because of it. Problems due to online money games ave led to several families being destroyed. It is the duty of the government and the parliament to take strict action against social evils, which keep erupting time and again.
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Death Knell for Legitimate Operators
The ban has been met with intense backlash from the industry. Experts estimate that it could knock off $15 billion in startup value, driving 450 million players to unregulated offshore platforms. The policy also threatens sponsorships like Dream11's ₹358 crore deal with the BCCI, which can significantly impact cricket funding. With 568 million users and 200,000 jobs at stake, the ripple effects extend to developers, advertisers, and players nationwide.
This bill is a death knell for legitimate Indian operators. Instead of protecting users, it risks exposing them to fly-by-night offshore networks with zero consumer safeguards. By shutting down regulated and responsible Indian platforms, crores of players will be driven into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without safeguards, consumer protections, or taxation.
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