- India proposes ban on all money-based online gaming transactions under new Bill
- Bill covers fantasy sports, poker, rummy, and opinion-trading platforms nationwide
- E-sports and social games without betting elements remain exempt from the ban
India has proposed a sweeping ban on all money-based online gaming transactions — a move that would directly impact platforms such as Dream11, MPL, Probo, Rummy and Poker operators, according to provisions in the new Online Gaming Bill.
The draft legislation defines online money games as any digital game whether based on skill, chance, or both, that requires players to pay fees, deposit money or other stakes in the expectation of winning monetary returns. This brings fantasy sports, card games, poker, rummy, and even opinion-trading platforms under its ambit.
By contrast, the Bill draws a clear line between money games and online social games, which may charge for access but cannot involve stakes or wagers. Titles such as Ludo King, Roblox, or educational skill-development games fall in this category.
Separately, e-sports are recognised as competitive, multi-player sporting events, akin to physical sports, with outcomes determined by dexterity, strategy and agility. These can offer performance-based prize money but are insulated from any betting or staking elements.
The proposed framework, a copy of which NDTV Profit has seen, aims to curb betting-linked harms while supporting innovation in e-sports and recreational gaming. If passed, the ban would deal a blow to India's multi-billion-dollar fantasy sports and online card gaming industry.
The Bill will impact pay-to-win games, such as fantasy sports, rummy, and poker, which have the scope of monetary gains.
No real impact will be seen on e-sports, such as FIFA and League of Legends, or leading titles on PlayStation, Xbox, and Nintendo platforms. Prominent players like Microsoft and Activision Blizzard offer e-sports and games without any betting component.
The draft Bill, approved by the Cabinet on Tuesday, seeks to ban money-based gaming services nationwide and impose strict penalties on platforms, endorsers, and payment facilitators.
According to the draft, offering or operating online money games, such as fantasy sports, poker, rummy, and opinion-trading platforms, will be declared an offence, carrying punishments of up to three years in jail or a fine of Rs 1 crore. Endorsers and advertisers could face two years in prison and fines up to Rs 50 lakh, while banks and financial institutions enabling transactions may also face three years' imprisonment or fines of Rs 1 crore.
The Bill also empowers authorities to block information related to money games, and grants wide powers of search, seizure, and investigation.
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