Indian Parliament Bans Online Money Games

India’s parliament on Thursday passed a bill banning online games played for money, a move that could upend the country’s fast-growing fantasy sports industry after Prime Minister Narendra Modi’s government warned of severe financial risks tied to such platforms. 

The legislation, which has already cleared both houses of parliament, now awaits the president’s formal approval, widely seen as a procedural step.

The decision has sent shockwaves through a multibillion-dollar industry backed by major venture capital firms such as Tiger Global and Peak XV Partners. Analysts had projected the sector could reach a valuation of $3.6 billion by 2029. 

Executives now fear sweeping job losses and the closure of many app-based companies that have attracted billions in foreign investment.

The law targets what the government calls “harmful” money-based gaming services, including associated advertising and financial transactions, while also citing potential psychological harm. “It is the duty of the government and parliament to take strict action against social evils that continue to emerge from time to time,” IT Minister Ashwini Vaishnaw told lawmakers.

India’s gaming firms are preparing to challenge the ban in the Supreme Court, arguing the government failed to consult industry stakeholders and that certain games, such as poker, rely on skill and should not fall under the prohibition.

Fantasy sports apps like Dream11 and Mobile Premier League have soared in popularity, boosted by aggressive marketing campaigns and endorsements from cricket superstars. These platforms allow users to assemble virtual cricket teams based on real players and earn points tied to actual match performances. 

On Thursday, Dream11 promoted the option to form a team for just 29 rupees (33 cents), with prizes as high as 300,000 rupees ($3,438).

Dream11 is currently valued at around $8 billion, while Mobile Premier League is worth an estimated $2.3 billion, according to PitchBook data. Other widely used platforms include Games24x7, offering card games such as rummy and poker, as well as Zupee and WinZO.

Under the new law, any individual or company offering money-based games once the ban takes effect could face up to three years in prison and heavy fines, a prospect that threatens to reshape one of the country’s most dynamic digital industries.