The Indian government has put forward a measure that would make it illegal to gamble online for real money. They say they are worried about addiction, financial problems, and money laundering.
The Indian government suggested a law on Tuesday that would put an end to the multibillion-dollar internet gambling sector. The law would make it illegal for gambling websites and apps to offer games "played by a user paying fees or depositing money or other stakes" in order to make money.
Supporters of the measure talked about the possible dangers of gambling online, including as addiction, debt, and mental health problems, especially among young people and people who are impoverished. They were worried about "financial fraud, money laundering... and, in some cases, the financing of terrorism" because they thought the business was growing too quickly.
They also brought up Article 47 of India's constitution, which says that the government must "intervene when a digital ecosystem threatens public health, order, and societal well-being."
A billion-dollar business at stake
The action might hurt an industry worth an estimated INR313,365 (US$3.6 billion), which includes fantasy cricket apps that millions of people in India use. Some of them include Dream11, MPL, MyTeam11, Howzat, and League11.
Reuters says that people who utilise Dream11 may make fantasy cricket teams for as little as INR8 (US$0.10), and the total prize pool is INR1.2 million. From mid-March to the end of May, the Indian Premier League season is full of action.
People who want the ban to happen aren't just having fun. The law says that internet gambling "often uses manipulative design features, addictive algorithms... while promoting compulsive behaviour that leads to financial ruin."
If passed, the law would make it illegal for anybody or anything that "shall offer, aid, abet, induce or otherwise indulge or engage in" real-money internet gambling. People who break the law could face fines or jail time of up to three years.
Trade groups in the industry have criticised the law, saying it may "strike a death knell" for a sector that employs thousands of Indians and has attracted a lot of foreign investment. The All India Gaming Federation and the Federation of Indian Fantasy Sports wrote a letter of protest saying that banning "responsible" Indian platforms will just drive gamers underground to providers that are not regulated and are located outside of India.
They said, "This bill doesn't protect people; it puts them at risk of fraud, exploitation, and unsafe practices."
Bill also supports esports in India.
The bill tries to stop "money games," but it also sees esports as a growing element of healthy gaming culture. "Competitive games of skill played in virtual environments with rules and recognition" is how esports are characterised.
The Youth Affairs and Sports Ministry said in 2022 that esports is a multi-sport event, apart from the larger category of gaming. It also started and paid for the eSports Federation of India at the same time. The proposed measure would also set up a National Esports Authority to promote competitive gaming, make regulations for fair play, safety, and compliance, and keep an eye on casual online social games.
Officials say that if the government supports esports, it will bring in foreign investment, create jobs, and hold international events in India.
The Times of India says that the government's cabinet has passed the Promotion and Regulation of Online Gaming Bill 2025, which is now going to parliament.
