• India’s newly passed bill banning real-money online gaming ( RMG) has been slammed by legal and industry experts as a counterproductive move that will empower the illegal black market.
• Critics argue the blanket prohibition ignores proven international regulatory models and will simply drive players to unprotected, untaxed offshore websites.
• The commercial fallout has been immediate, with fantasy sports giant Dream11 pulling its high-profile sponsorship of the national cricket team.
• India’s main gaming trade bodies have called the ban a potential “ death knell” for a legitimate, multi-billion-dollar industry that supports thousands of jobs.
• While the government argues the law is necessary to combat addiction and financial crime, opponents warn it may actually worsen problems like money laundering by pushing them into a “shadow economy.”

The Indian government’s swift passage of a new bill to prohibit all real-money online gaming has been met with a storm of criticism, with industry leaders and legal experts warning that the move will be counterproductive and will ultimately benefit the illegal black market.

The Promotion and Regulation of Online Gaming Bill (2025) was passed by both houses of parliament in just two days last week and now awaits the final presidential assent. In a joint statement, India’s three main gaming trade bodies-the All India Gaming Federation, the eGaming Federation, and the Federation of Indian Fantasy Sports-called the ban a potential “ death knell” for the country’s “sunrise digital skill gaming sector,” and warned it would cause “serious harm to Indian users and citizens.”

The Counterproductive Nature of Prohibition

While the government has defended the law as a necessary step to combat addiction, debt, and financial crime, critics argue that it is a misguided and retrograde move. Gaming law firm Segev LLC wrote that the law “moves against the current global tide” of licensure and regulation.

“A blanket prohibition … sidelines proven regulatory models that channel demand into transparent, well‑supervised markets that protect players and generate tax revenue,” the firm stated. “Instead, it risks driving activity underground, where consumer harm is harder to prevent and oversight is minimal.” This sentiment has been echoed across the industry, with many warning that the law won’t stop gambling but will simply end safe and legal gambling.

Immediate Commercial Fallout

The commercial consequences of the ban are already being felt. In the immediate aftermath of the bill’s passage, fantasy sports giant Dream11 announced it was pulling its lucrative sponsorship of the Board of Control for Cricket in India (BCCI). The move leaves the country’s national cricket team without a primary sponsor just weeks before the start of the Asia Cup.

This is a powerful illustration of how deeply the now-banned RMG sector had integrated with India’s mainstream economy and sporting culture.

A Gift to the Black Market?

The most serious warning from critics is that the new law will inadvertently make problems like money laundering even worse. With the legal, regulated, and tax-paying industry set to be dismantled, the enormous consumer demand for online gaming will be met exclusively by illegal offshore operators.

As the regulatory news site RegTechTimes noted, “The very problem that the government wanted to stop - money laundering - may actually become worse. Offshore casinos will provide a channel for people to move money in and out of the country illegally… creating a shadow economy that is invisible to regulators.” The industry is now bracing for the final assent of a law that many believe is a historic and damaging misstep in the regulation of India’s digital economy.