India’s parliament has approved a sweeping law outlawing online gambling after government data revealed that 450 million people lose a combined /$2.3 billion annually on gaming apps.
The ban affects platforms offering card games, poker, and fantasy sports — including India’s hugely popular homegrown fantasy cricket apps.
Officials said nearly one-third of the country’s population has lost money through online betting.
The Promotion and Regulation of Online Gaming Bill was passed by both houses of parliament late Thursday. It criminalises the offering, promotion, and financing of such games, with violators facing up to five years in prison.
“This legislation is designed to curb addiction, financial ruin and social distress caused by predatory gaming platforms that thrive on misleading promises of quick wealth,” a government statement said.
India’s gaming industry is among the largest globally, but the law exempts e-sports and educational games, which the government plans to encourage as part of its digital economy agenda.
Prime Minister Narendra Modi said the new law will “encourage e-sports and online social games” while “at the same time, it will save our society from the harmful effects of online money games.”
Industry stakeholders had pushed for regulation and taxation instead of an outright ban, warning the move could drive users toward illegal offshore platforms.
Supporters of the bill argue the social consequences are too severe to ignore. Officials linked the rapid growth of online gambling to rising financial distress, addiction, and even suicide cases.
The government also said online betting had ties to fraud, money laundering, and terrorism financing.
Technology Minister Ashwini Vaishnaw stressed that the law distinguishes between “social” games and those played for money.
“It encourages e-sports, which are organised competitive video games, and promotes safe online social and educational games,” a government briefing note read.
“It separates constructive digital recreation from betting, gambling and fantasy money games that exploit users with false promises of profit.”
