As a major step, which promises to give a new shape to the rapidly growing digital industry, the Lok Sabha passed on 20 August 2025 "the encouragement and regulation of online gaming, 2025". This law, which aims to ban all real-wealth online games, is an important indication of how India sees and controls its $ 3.7–3.8 billion gaming sectors.

Under this sweeping bill, platforms that previously thrived on depicting chance or skill-based games for cash prizes now face an outright ban even advertisement of such games is prohibited. Banks and payment systems are barred from processing related transactions, and violations could result in three years’ imprisonment or fines up to ₹1 crore. Promoters, including influencers, may face prison terms of up to two years coupled with ₹50 lakh fines.

Yet, it isn’t just about shutting doors it’s about opening new ones. The government aims to reposition the landscape by promoting e-sports as legitimate competitive sports. Guidelines, training academies, and support for educational and cultural gaming are on the horizon, signalling hope for safer, responsible gaming avenues.

However, the flip side of noble intent is stark reality. The industry warns of massive job losses potentially over 20,000 jobs and the closure of 300+ gaming firms. Franchise leagues and grassroots sporting events may take a hit, with advertising and broadcasting revenues at risk.

At its core, this bill is a reflection of society’s frustration with the darker sides of digital play addiction, underage exposure, financial fraud, and national security threats. Yet it also opens a new chapter, where innovation and safety might coexist under a unified regulatory framework. Only time will tell whether this balance can indeed be struck.