New Delhi, Aug 20: The ‘Promotion and Regulation of Online Gaming Bill 2025’, which was introduced in the Lok Sabha on Wednesday, could spell the end of “real money gaming platforms”, that have stakes in the sponsorship market of Indian sports, most significantly cricket.
The contents of the bill, which aims to regulate one of the fastest growing industries, is music to the ears for the Esports fraternity in the country.
But the multi-billion dollar fantasy gaming industry comprising companies that have spent big money in sponsorship of cricket might see a marked dip in their revenues.
And as a chain reaction, it could also affect the sports sponsorship market, including individual players’ sponsorship and franchise-based domestic leagues of disciplines like kabaddi and football.
The Online gaming regulation bill looks to create a regulatory body that will look after four diverse segments — Esports, educational gaming, social and casual gaming and real money gaming.
Of these, there will be restrictions on online money games, states the document which is in possession of PTI.
As per “PROHIBITIONS” clause: “No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service.
“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” clause clearly terms real money gaming as a criminal offence which could lead to jail and humongous fine for the service provider.
Clause 9. (1) reads “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) reads: “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 makes it clear that real money gaming is leading to a lot of social problems and it needs some kind of regulation.
“….the parallel proliferation of online money games accessible through mobile phones, computers and the internet, and offering monetary returns against user deposits has led to serious social, financial, psychological and public health harms, particularly among young individuals and economically disadvantaged groups;
“…such games often use manipulative design features, addictive algorithms, bots and undisclosed agents, undermining fairness, transparency and user protection, while promoting compulsive behaviour leading to financial ruin.”
Implications of the Bill
Cricket is one sport which has seen a huge influx of real money gaming with Indian team’s title sponsor being Dream 11. My11Circle is the official fantasy sports partner of the money-spinning Indian Premier League.
Dream11 brought the Indian team’s title rights for about USD 44 million (Rs 358 crore approx). My11Circle brought IPL fantasy gaming rights for a fee of Rs 625 crore for five years (Rs 125 crore approx annually).
Add to this the country’s top cricketers — former as well as current — have hefty personal endorsement deals with various real money gaming platforms.
Noted sports lawyer Vidushpat Singhania, who has a deep understanding of the subject, explained the consequences in a nutshell.
“Cricket is huge in India and there won’t be any dearth of sponsors for Indian cricket and its properties. However, personal sponsorship market can shrink because of this bill.
“Also fan engagement will be affected,” Singhania told PTI.
He, however, explained that fantasy games can still run a subscription based model.
“There will be a subscription fee and say you pay Rs 100 for a gaming app and test your skills in fantasy gaming. But real money gaming which is paying and earning money, that is prohibited as per this bill.”
The gigantic revenue stream of all these fantasy gaming apps will certainly diminish due to the ban and hence money flowing back into the sport will decrease markedly.
Joy for Esports Market
Esports made its debut at the Hangzhou Asian Games in 2023 and the International Olympic Committee will be conducting its first Esport Olympics in Riyadh in 2027.
Sharing his thoughts on this development, Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, says, “The government’s intent to recognise and promote esports, as highlighted in the recent bill, is an encouraging step towards building a structured and globally competitive ecosystem.
“However, for this vision to truly materialise, it is critical that the terminology used in the bill, particularly the distinctions between esports, online gaming, online social gaming, and online money gaming be clearly defined and uniformly understood.” (Agencies)
