India’s Online Gambling Ban Sparks Industry Backlash and Sports Fallout

The fallout is intensifying from India’s move to prohibit online gambling, a measure that sped through Parliament this month and now awaits the president’s signature. The planned ban on real-money internet wagering has shaken a multibillion-dollar industry and already led a major fantasy sports operator to withdraw its sponsorship of national cricket. Critics warn the government’s action is likely to backfire, driving players to illegal markets rather than curbing risks.

On 19 August, lawmakers in the Lok Sabha, the lower house of Parliament, tabled the Promotion and Regulation of Online Gaming Bill (2025). Just two days later, the Rajya Sabha gave its approval with minimal consultation. Final assent from Indian President Droupadi Murmu is considered a formality, as he has already expressed support for the initiative.

The bill explicitly outlaws gambling websites and mobile apps from offering games “played by a user paying fees or depositing money or other stakes” in exchange for the chance of winning cash. Supporters of the measure stressed the dangers tied to online gambling, citing addiction, mounting debt, and mental health concerns. They also warned of “financial fraud, money laundering … and, in some cases, the financing of terrorism.”

“It is the duty of the government and the parliament to take strict action against social evils, which keep erupting time and again,” federal IT Minister Ashwini Vaishnaw told lawmakers last Thursday.

Yet opponents argue the prohibition will not eliminate the risks but instead push them into the shadows. In a 20 August blog post, gaming law specialists Segev LLC contended that the legislation, while “framed as a progressive step, in fact moves against the current global tide” of regulation and licensing, which incorporates responsible gaming standards and consumer safeguards.

“A blanket prohibition … sidelines proven regulatory models that channel demand into transparent, well-supervised markets that protect players and generate tax revenue,” the firm wrote. “Instead, it risks driving activity underground, where consumer harm is harder to prevent and oversight is minimal.”

The impact has already rippled into sports. Soon after Parliament passed the bill, iGaming provider Dream11 pulled its sponsorship of the Board of Control for Cricket in India (BCCI), which governs the country’s most watched sport. The withdrawal leaves Team India without a sponsor heading into the Asia Cup, scheduled for 9–28 September in Abu Dhabi, as the BCCI searches for replacements. Global Data Sport attributed Dream11’s retreat to the suspension of the European Cricket League last week.

Industry bodies have also sounded the alarm. The All India Gaming Federation, the eGaming Federation, and the Federation of Indian Fantasy Sports issued a joint statement describing the ban as a potential “death knell” for a sector worth billions.

In a letter quoted by India Times Now, the groups appealed to lawmakers “on behalf of the millions of young entrepreneurs, developers and professionals working in India’s sunrise digital skill gaming sector.” They warned that the prohibition threatens a “legitimate, job-creating industry and [will] cause serious harm to Indian users and citizens.”

Analysts caution that the unintended consequences could be severe. RegTechTimes, a regulatory news outlet, noted that the new law “creates a new risk. The very problem that the government wanted to stop — money laundering — may actually become worse. Offshore casinos will provide a channel for people to move money in and out of the country illegally. Some of this money could even come from criminal activities. Almost all of it will avoid banking scrutiny, creating a shadow economy that is invisible to regulators.”

The bill also bans advertising and promotion of real-money gambling but carves out exceptions for esports and online social gaming, provided no financial stakes are involved.

By fLEXI tEAM