New Delhi, Aug 20 (PTI) – The introduction of the 'Promotion and Regulation of Online Gaming Bill 2025' in the Lok Sabha on Wednesday is poised to profoundly affect the landscape of the gaming industry in India, potentially bringing an end to "real money gaming platforms".
These platforms have significantly invested in sports sponsorship, particularly cricket. While the bill aims to regulate this burgeoning industry, it is met with enthusiasm by the Esports community in India.
Conversely, the multi-billion-dollar fantasy gaming sector may experience a dip in revenue. This change might trigger a domino effect that could influence sports sponsorship markets, impacting individual player endorsements and franchise-led domestic leagues across sports like kabaddi and football.
The proposed legislation seeks to establish a regulatory body overseeing four distinct segments: Esports, educational gaming, social and casual gaming, and real money gaming.
Restrictions are particularly focused on online money games, as detailed in the bill's "PROHIBITIONS" clause, which states: "No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service."
The clause further stipulates: "No bank, financial institution, or any other person facilitating financial transactions or authorisation of funds shall engage in, permit, aid, abet, induce or otherwise facilitate any transaction or authorisation of funds towards payment for any online money gaming service."
The "OFFENCES AND PENALTIES" section categorically defines real money gaming as a criminal act, punishable by imprisonment and substantial fines for service providers.
Clause 9. (1) specifies, "Any person who offers online money gaming service in contravention of section 5 shall be punished with imprisonment for a term which may extend to three years or with fine which may extend to one crore rupees or with both."
Clause 9. (2) details: "Any person who makes or causes to make advertisement in any media, in contravention of section 6, shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to fifty lakh rupees or with both."
The government is committed to addressing the societal challenges posed by real money gaming, noting its contribution to social, financial, psychological, and public health issues, particularly among young and economically disadvantaged individuals.
The bill underscores concerns about manipulative design elements, addictive algorithms, bots, and undisclosed agents that compromise fairness, transparency, and user protection, fostering compulsive behavior that can lead to financial ruin.
Implications of the Bill
Cricket has significantly benefitted from the real money gaming sector, with Dream 11 serving as the Indian team's title sponsor, and My11Circle acting as the official fantasy sports partner of the lucrative Indian Premier League.
Dream11 reportedly acquired the Indian team's title rights for around USD 44 million (approximately Rs 358 crore). My11Circle secured IPL fantasy gaming rights for Rs 625 crore over five years (approximately Rs 125 crore annually).
Additionally, top Indian cricketers, past and present, have lucrative personal endorsement agreements with various real money gaming platforms.
Sports lawyer Vidushpat Singhania highlighted the consequences of this bill succinctly, stating, "Cricket is huge in India and there won't be any dearth of sponsors for Indian cricket and its properties. However, the personal sponsorship market can shrink because of this bill."
Singhania further noted that while fantasy games can pivot to a subscription-based model, real money gaming, involving monetary transactions, is prohibited under the bill.
This prohibition is likely to diminish the substantial revenue streams these fantasy gaming apps generate, consequently reducing financial inflows into the sport.
Joy for Esports Market
Esports, which debuted at the Hangzhou Asian Games in 2023, anticipates its first Esport Olympics in Riyadh in 2027, underlining its growing prominence. Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, expressed optimism regarding the government's recognition and promotion of esports, as outlined in the bill.
Rathee emphasized the importance of precise terminology within the legislation to ensure clear distinctions between esports, online gaming, online social gaming, and online money gaming.
(Only the headline of this report may have been reworked by Editorji; the rest of the content is auto-generated from a syndicated feed.)
