Online Gaming Bill comes into effect: What it is, all that happened so far

The Online Gaming Bill, passed in August this year, comes into effect today. As part of the bill, games involving real money have been banned, while esports has been recognised officially as a sport. The bill, since its passing, has been the topic of discussion for many. While a set of people welcomed the bill with open arms, saying it would help boost India’s esports sector, another section of people have expressed concerns. On the other hand, many real-money gaming apps have conducted mass layoffs since the bill. Let’s take a look at all that has happened so far. 

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Also read: Esports is legit, not gambling: Indian gamers welcome Online Gaming Bill 2025

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A complete ban on real-money games

The most significant provision in the new law is its blanket ban on all real-money games (RMGs). Unlike earlier frameworks that drew a line between “games of chance” and “games of skill” such as fantasy sports, online rummy, or poker, the Act eliminates the distinction entirely when played for stakes. This means that any form of money-based online game, irrespective of its classification, is now prohibited in India.

Business pivots and job losses in the industry

The fallout has been swift. Major RMG platforms like Dream11 and MPL have discontinued their cash-based offerings and are attempting to pivot towards subscription-driven or purely casual gaming experiences. However, this transition has come at a cost. Industry trackers estimate that over 6,500 jobs were lost in the immediate aftermath of the law’s passage, highlighting just how deeply the sector has been impacted.

Strict penalties and financial clampdown

The Act also enforces stringent criminal and financial penalties. Those caught offering or facilitating money games could face up to three years in prison and fines of up to ₹1 crore. In addition, banks and financial institutions have been barred from processing any transactions related to these banned platforms. This financial blockade makes it nearly impossible for outlawed operators to continue functioning, signalling the government’s intent to enforce the law comprehensively.

Push for e-sports and non-monetary games

On the flip side, the legislation seeks to foster a new ecosystem for digital play. It officially recognises e-sports as a legitimate competitive sport, while also promoting safe online social and educational games. The government has positioned this distinction as a way to encourage constructive recreation while cracking down on betting, gambling, and fantasy money games. For the gaming community, this could mean more structured growth for e-sports and new opportunities in educational and interactive gaming spaces.

Legal challenges and constitutional debate

Unsurprisingly, the Bill has triggered a wave of legal challenges. Companies such as Head Digital Works (A23) have petitioned against the law, arguing that it disregards the judicial precedent that previously protected skill-based money games. The Supreme Court has consolidated these cases, taking them over from various High Courts in Delhi, Karnataka, and Madhya Pradesh. A crucial hearing on the law’s constitutionality, and whether it infringes upon the fundamental right to trade and occupation, is expected soon.

With the Online Gaming Bill now in effect, India’s gaming industry stands at a crossroads. While real-money gaming has effectively been outlawed, the government’s clear support for e-sports and safe gaming platforms signals the beginning of a new, tightly regulated era. The final shape of this ecosystem, however, may ultimately be decided not in gaming arenas but in the courtroom, where the Act’s future will face its most decisive test.

Also read: Lok Sabha passes bill to ban real-money online games: Full story in 5 points

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Divyanshi Sharma

Divyanshi Sharma is a media and communications professional with over 8 years of experience in the industry. With a strong background in tech journalism, she has covered everything from the latest gadgets to gaming trends and brings a sharp editorial lens to every story. She holds a master’s diploma in mass communication and a bachelor’s degree in English literature. Her love for writing and gaming began early—often skipping classes to try out the latest titles—which naturally evolved into a career at the intersection of technology and storytelling. When she’s not working, you’ll likely find her exploring virtual worlds on her console or PC, or testing out a new laptop she managed to get her hands on. View Full Profile