The passage of India’s Online Gaming Bill 2025 marks a watershed moment that has fundamentally altered the landscape of the country’s booming digital gaming industry.
The Bill That Changed Everything
On August 22, 2025, what many in the gaming industry are calling a “dark day” became reality. The Promotion and Regulation of Online Gaming Bill was passed by both houses of parliament late on Thursday, and criminalises the offering, promotion and financing of such games, with offenders facing up to five years in prison.
The Lok Sabha has passed the Promotion and Regulation of Online Gaming Bill, 2025, in a dramatic reversal of earlier industry-friendly policies. This legislation represents a complete paradigm shift from regulation to prohibition when it comes to real-money gaming platforms.
Dream11: From Market Leader to Shutdown
Dream11, India’s fantasy sports giant that once dominated the market with millions of users, found itself at the epicenter of this regulatory storm. Dream11’s parent company, Dream Sports, has shut down its real-money gaming operations due to this new bill passed by Parliament, which imposes a complete ban on all real-money games.
The platform that had become synonymous with fantasy cricket in India was forced to make the difficult decision to cease its core operations. After pausing real money operations at Dream11, Dream Sports has forayed into the investment tech space with the launch of Dream Money, signaling the company’s attempt to pivot and survive in this new regulatory environment.
The Scope of the Ban
The legislation doesn’t discriminate between skill-based and chance-based games. While encouraging the growth of e-sports and educational gaming, it imposes a blanket ban on all forms of real-money online gaming (RMG) – regardless of whether they are skill-based or chance-based.
Under the online gaming bill 2025, platforms like Dream11, My11Circle, MPL, Winzo, GamesKraft, 99Games, KheloFantasy, Games24x7, Pokerbaazi, Rummy, and Parimatch will all be prohibited.
The Financial Devastation
The numbers tell a story of unprecedented industry disruption:
- ₹25,000 crore in investments are now at risk
- The bill could affect around four lakh companies and 2 lakh jobs
- The bill effectively bans real-money gaming platforms like Dream11, MPL, My11Circle, and RummyCircle, which form the backbone of India’s $3.7–3.8 billion gaming industry
Industry Voices: “Heartbreaking and Deeply Unjust”
The emotional toll on industry veterans is palpable. The move has sent shockwaves across India’s gaming ecosystem – none more evident than in a powerful post by Smrita Singh Chandra, former Vice President of Policy Communications at Dream11. Her characterization of the bill as “not just heartbreaking, but deeply unjust” reflects the sentiment across the industry.
What Survives: The E-Sports Exception
While the bill devastates real-money gaming, it creates a pathway for e-sports and social gaming. The bill encourages e-sports and online social games while prohibiting harmful online money gaming services. It has the provision for the appointment of an Online Gaming Authority for coordinated policy support, strategic development and regulatory oversight of the sector.
Games like BGMI (Battlegrounds Mobile India), Real Cricket, and other non-monetary gaming platforms remain unaffected, as they don’t involve real-money transactions.
Government’s Rationale
Prime Minister Narendra Modi on Thursday welcomed the passage of The Promotion and Regulation of Online Gaming Bill, 2025 in Parliament, calling it a step that will give a push to India’s e-sports ecosystem while also shielding society from the risks of money-based online games.
The government has positioned this legislation as necessary to protect citizens from potential risks associated with real-money gaming, including concerns about money laundering and national security.
User Impact and Transition
For millions of Dream11 users, the transition has been managed with care. Regarding users’ funds on Dream11, the platform has assured that account balances are safe and users can withdraw their funds, ensuring that player money isn’t stranded in the shutdown.
Other platforms are following similar approaches. “In line with the new Online Gaming Bill 2025, we are discontinuing paid games, but our hugely popular free titles like Ludo Supreme, Ludo Turbo, Snakes & Ladders, and Trump Card Mania will continue to be available for all users for free,” a Zupee spokesperson said in a statement.
Legal Recourse and Industry Response
IT Minister Ashwini Vaishnaw explained in the Rajya Sabha that online money gaming companies can take the govt to court over the ban, suggesting that legal challenges to the legislation are both expected and permitted.
The Road Ahead: Pivoting for Survival
Companies are already adapting to the new reality:
- Pivoting to Investment Tech: Dream Sports’ launch of Dream Money represents a strategic shift away from gaming
- Focus on Free Gaming: Platforms are maintaining user engagement through free-to-play models
- E-Sports Investment: Companies are likely to increase focus on the still-legal e-sports sector
Conclusion: The End of an Era
The Online Gaming Regulation Bill, 2025 marks a turning point in India’s digital economy. By banning real-money gaming formats, promoting e-sports, and setting up a dedicated regulatory framework, the bill aims to create a safer and more transparent gaming ecosystem.
For Dream11 and the broader real-money gaming industry, August 22, 2025, will be remembered as the day an entire sector was forced to reinvent itself overnight. While the government aims to promote safer gaming practices and boost e-sports, the immediate impact has been the dismantling of a multi-billion dollar industry that employed hundreds of thousands and entertained millions.
The true test now lies in whether these companies can successfully pivot to new business models while the industry explores legal avenues to challenge what many see as an overly broad regulatory response to legitimate concerns about online gaming.
As this story continues to develop, the full implications of the Online Gaming Bill 2025 will become clearer. What remains certain is that the Indian gaming landscape has been forever changed, and companies like Dream11 must now navigate an entirely new reality.
