Lawmakers in India’s lower and upper parliamentary houses recently rubberstamped an anti-iGaming bill that is already bringing the online gambling industry to its knees. Prominent operators in the nation, like A23, have sounded the alarm by going to court.
India is home to over 131 million gamers (9.4% of the population), and this proportion could increase to 10.2% by 2030. These numbers present huge opportunities, and it’s no surprise that the recent internet gaming ban approved by the country's parliament is facing rebellion.
The Indian parliament approved the Promotion and Regulation of Online Gaming Bill on August 20. This statute blocks what it calls ‘harmful’ online money gaming services, including advertising and the safety of financial transactions associated with the activity.
India’s government attributes this decision to the psychological harm that these games can sometimes cause. The bill specifically defines two key internet gaming verticals:
Federal IT minister Ashwini Vaishnaw was at the forefront of this move saying:
“It is the duty of the government and the parliament to take strict action against social evils, which keep erupting time and again.”
Companies that host or enable such services may face fines of up to 10 million rupees (about US$114,000) and prison terms of up to three years under this law. The law won’t penalize players, but operators and financial partners. The Promotion and Regulation of Online Gaming Bill 2025 has already cleared both houses of parliament. The final step is the president’s approval. It’s not dated yet, but it is usually only a formality.
Head Digital Works, the parent company of A23, has gone to court to challenge the newly introduced Promotion and Regulations of Online Gambling Bill 2025. The plaintiff described the legislation as a ‘product of state paternalism,’ arguing that it unfairly targets businesses operating in the online skill gaming sector.
A23 is home to over 70 million players of internet rummy and online poker. The operator warned that the new law essentially criminalizes the business of online skill gaming in its petition to the High Court of Karnataka. Implementation could force many gaming companies to shut down overnight.
Several industry bodies have also voiced their concerns. The All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) have written to India’s Home Minister Amit Shah to oppose the move.
Furthermore, operators have begun removing their real-money gaming services in response to the new bill. Major domestic names like Dream11 have stepped back, along with international companies such as Flutter. The latter ran Junglee in India, had expected $200 million in revenue and $50 million in adjusted EBITDA from the platform in 2025.
A23 is fighting the law in court, but Dream11 has chosen not to. This is despite Harsh Jain, Dream 11’s CEO, admitting that 95% of their revenues have vanished overnight owing to the regulation.
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