Is India’s new online gaming ban threatening innovation and jobs?

Jaydeep Chakravartty, Rakesh Maheshwari and Ranjana Adhikari, experts in India’s online gaming industry, speak to Focus Gaming News about the future of the market.

India.- The Indian parliament recently passed the Promotion and Regulation of Online Gaming Act, 2025, imposing a ban on real-money online games, including fantasy sports, poker, and rummy from October 1, 2025. While the legislation seeks to protect users from gambling-related risks, industry leaders warn it may stifle innovation, investment and employment in the country’s burgeoning digital economy.

To gain deeper insight into the future of the industry, Focus Gaming News spoke with Jaydeep Chakravartty, a former member of the Meghalaya Gaming Commission; Rakesh Maheshwari, a policymaker with deep knowledge of India’s gaming regulations; and Ranjana Adhikari, a legal and digital economy expert, leading voices and authorities in India’s online gaming industry.

Jaydeep Chakravartty described the bill’s significance: “The 2025 Online Gaming Bill in India isn’t something fantasy sports, poker, or rummy companies can tweak around. It really does force a complete business model overhaul,” he said.

Operators can no longer accept money stakes, maintain player-funded prize pools, advertise games, or process payments for real-money games. “Operators have to significantly change their business model or stop operation completely under this new rule,” Chakravartty said.

About his experience on the Meghalaya Gaming Commission, Chakravartty said: “Meghalaya Gaming Commission was India’s first and only gaming commission. It was an experiment to create a vibrant Gaming Eco System in Meghalaya. India follows a legal framework which is very similar to the USA, where individual states can come up with rules and regulations for allowing or not allowing Gambling Products.

“We were expecting a regulation to ensure player rights are protected and an industry is supported with the right taxation and legal protection. However, what we got is a complete prohibition, and that is now the law of the land.”

Despite these restrictions, Chakravartty sees potential paths forward. He suggests operators could pivot to: Free-to-play models such as Ad-supported contests and digital rewards or brand-backed prizes instead of cash, Esports and competitive gaming, gamification and social engagement or eye global expansion.

He cautions that international sweepstakes models cannot be easily replicated in India due to stricter wagering laws, cultural stigma, and fragmented enforcement: “Legally, Indian law takes a stricter view of ‘wagering,’ and sweepstakes look too much like banned prize chits. Culturally, gambling stigma and recent tragedies push regulators to err on the side of bans,” he says.

About the newly created National Online Gaming Commission, Chakravartty said its most important task will be to ensure Indian consumers are not deceived by offshore gaming operators where they have no consumer rights or protection.For the NOGC to be effective and trusted, it must be seen as independent and fair, he said.

“If it skews too much toward punishment, industry will collapse or go underground. If it leans too much toward industry interests, consumers will suffer harm. The sweet spot is credible balance, with data-driven oversight,” he concluded.

Rakesh Maheshwari, a policymaker familiar with India’s gaming regulations, said the bill caught the industry off guard: “None of the gaming companies were aware of it until a day before it was presented in Parliament.”

Maheshwari emphasised the government’s goals of protecting consumers, addressing addiction, and promoting ethical online behaviour. He highlighted that India already had regulations in place since 2023 requiring responsible gaming, grievance officers, and ethical advertising for games of skill.

“Outright bans result in apprehensions among companies and investors,” he warned. “There could have been many other ways of managing responsible gaming while allowing innovation to continue.”

Ranjana Adhikari, a legal and digital economy expert, warned that the law could unsettle India’s digital economy: “The skill-based real money online gaming industry has created more than 200,000 jobs, housed over 400 startups, and generated nearly USD2.3bn in taxes.”

She criticised the lack of consultation before the bill’s passage, noting that sunrise sectors thrive under nuanced, evidence-based regulation. Without dialogue, investor confidence and entrepreneurial activity are at risk.

“If an entire industry can be prohibited overnight by the government without any dialogue and consultation and without any meaningful prior attempt at regulation, investor confidence and entrepreneurial spirit are very likely to be adversely impacted,” she said. 

Adhikari also highlighted legal contradictions: “The central government has completely disregarded established precedents on games of skill. India’s Constitution guarantees the right to pursue legitimate business, and courts have consistently ruled that skill games are not gambling.” She noted that multiple High Courts have already struck down blanket bans on skill-based games, and constitutional challenges to the new Act are underway.

She noted that the Act allows esports, social, and educational games to continue. Adhikari explained: “The Act provides scope for growth in esports and social/casual gaming, but operators will need time to explore permissible monetisation models and reshape offerings to replace lost revenue streams.”

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See also: Supreme Court to hear challenges to India’s online gaming ban

Jaydeep Chakravartty, Rakesh Maheshwari and Ranjana Adhikari, experts in India’s online gaming industry, speak to Focus Gaming News about the future of the market. India.- The Indian parliament recently passed…