The digital economy has been rocked by the Indian government's complete prohibition on real-money gaming apps. Industry insiders claim that the proposed measures to shield users from fraud, addiction, and money laundering are also destroying a sector that supports advertising expenditures, creates thousands of jobs, and attracts international investment. The action raises concerns about whether India is protecting consumers or missing out on a multibillion-dollar opportunity by destroying the long-standing legal distinction between games of skill and games of chance.
According to senior brand manager of programmatic advertising platform MGID Sanket Savaliya, it's a "win and lose situation both ways."
He clarified that "there are so many restrictions there now," from the advertiser's point of view. They must adhere to all of the protocols and compliance requirements. That is a disadvantage for them because it is a laborious and time-consuming operation.
Sanket warned that the prohibition might reduce ecosystem-wide revenue.
"The gaming category, the e-gaming vertical, accounts for 4% of our company's monthly revenue," he stated. "The gaming industry generates an estimated $1 lakh in revenue for MGID annually on a global scale." He clarified that affiliate marketing firms and programmatic marketers rely heavily on gaming companies for their revenue, thus any decisions about them have an effect on more than just those platforms. "The industry is driven by the community," he stated. "They will lose their jobs if the government bans them, right? That is detrimental to us as well.
The Bill, according to legal experts, is an unprecedented departure from established judicial precedent.
Saraf and Partners Partner Snigdhaneel Satpathy stated, “The proposed law obliterates the hitherto accepted distinction between games of chance and games of skill. Historically, games of skill have enjoyed constitutional protections, and various decisions of the Supreme Court and high courts have consistently upheld the validity of any games of skill, even when played with stakes or money. The removal of this traditional legal distinction between games of skill and chance that courts have maintained for decades is quite concerning, as it directly impacts and creates an existential challenge for India's multi-billion-dollar online money gaming sector.”
The "blunt-instrument approach" of the Bill, he warned, may push operators and gamers to "unregulated offshore platforms that offer no consumer protections whatsoever."
The potential consequences extend to advertising and sponsorships as well.
Chirag Jain, Associate Partner at DSK Legal, noted, “Most fantasy gaming models, including well-known platforms like Dream11, have been structured around judicial recognition of fantasy sports as games of skill. However, by treating skill and chance alike, the proposed Bill in its present form could have a severe impact on the fantasy gaming industry, forcing established players to revisit and potentially overhaul their business models.”
The prohibition also eliminates one of the most profitable internet advertising areas. CyberMedia's VP-Programmatic, Rachit Malik, clarified, “The clear separation between online money games and e-sports, or online social games, will compel companies to pivot their advertising and programmatic strategies toward brand messaging focused on skill, community, and entertainment rather than monetary rewards. This shift will redefine target audiences, emphasizing engagement and retention within niche gaming communities over pure acquisition.”
The law would “accelerate the demand for greater transparency, precise contextual targeting, and robust measurement tools, fundamentally reshaping how programmatic buys are planned and executed while encouraging advertisers to innovate within new regulatory boundaries,” Malik continued.
The industry is still torn between protecting users and maintaining a sector that has become ingrained in India's digital economy as the government moves forward with the Bill. Ultimately, whether the courts step in and whether the government reexamines regulation over prohibition will determine whether this marks the start of a safer, more controlled era of gambling or the loss of a billion-dollar potential.
Offshore Operators: Government tightens the net
One of the biggest flashpoints in the new gaming Bill is its attempt to crack down on international real-money gaming (RMG) platforms like Parimatch, 1XBET and others. These companies, often based in offshore jurisdictions, openly target Indian players but manage to avoid domestic taxes and compliance requirements.
To counter this, the Bill makes it clear that its rules also apply to services run from outside India, as long as they are accessible here.
The government has lined up a series of enforcement tools, including:
-
Blocking illegal gaming platforms under the IT Act,
-
Banning financial transactions linked to money games,
-
Strict penalties for advertising and promoting such platforms, and
-
Warrantless raids and seizures by authorised officers.
Ankit Sahni, Partner at Ajay Sahni & Associates, underlines the intent, saying, “The legislation is also designed to bring international betting platforms within its net. Services offered from abroad but accessible in India will be treated in the same way as domestic operators.”
Alay Razvi, Managing Partner at Accord Juris, further noted that the Bill specifically curbs the operations of international real-money gaming platforms like Parimatch and Stake that operate from offshore jurisdictions, saying, “The government enforces this through mechanisms including blocking access to such platforms, prohibiting financial transactions associated with them, and granting authorities powers for warrantless searches, seizures, and arrests. It also imposes severe penalties on operators and facilitators, and takes action against surrogate advertisers and intermediaries enabling these offshore platforms to function in India.”
According to Sahni the government has provided multiple levers of enforcement, ranging from blocking financial transactions and advertising to criminal sanctions, including fines and jail terms. In addition, regulators and enforcement officers have been given authority to block access to unlicensed platforms and to act against promoters or endorsers who advertise them.
“The message appears to be clear - offshore operators that target Indian players with money-based games will be subject to the same restrictions as local firms,” he added.
Adding to this, Arun Prabhu, Partner & Co-Head at Digital+, TMT, Cyril Amarchand Mangaldas, points to the operational teeth, saying, “All real-money games, including games of skill, are covered. Broadly, the bill defines online games in 3 categories - E-sports, which are played on a competitive basis, Online social games, which are offered solely for entertainment, recreation, or skill development, and Online real money games that involve any element of participation through staking money with the expectation of winning.”
The Bill will regulate all online gaming regardless of source. The bill proposes jail terms for advertising and enabling payments in relation to restricted formats. It also enables the blocking of offshore platforms. This combination of tools may provide greater control over offshore platforms.”
The government’s reasoning goes beyond just taxes and compliance. In its explanatory note, it points to national security concerns, highlighting links between money gaming and risks such as money laundering, fraud, and even terror financing.
Advertising Ban: Collateral Damage
Both Indian and offshore operators are also set to be hit hard by the Bill’s advertising ban. Section 6 categorically prohibits all ads for money games. Breaking this rule could land offenders with up to two years in jail and fines as high as ?50 lakh.
Satpathy calls this particularly stringent, saying, “The advertising restrictions under the law are particularly stringent, with imprisonment and fines being prescribed. Celebrities, media outlets, and marketing agencies involved in promoting money-based gaming could face substantial legal exposure. We are already seeing enforcement actions signalling regulatory authorities' commitment to comprehensive implementation.”
Enforcement and the Road Ahead
The Bill also paves the way for a new Online Gaming Authority, which will decide how games are classified, address grievances, and issue compliance rules. Its authorised officers will have strong powers – from investigating and searching digital properties to arresting suspects without a warrant in certain cases.
.jpg)
.jpg)
.jpg)
