Indian Ministers have been split over a new online gambling bill that some warn could lead to a rise in illegal betting providers.
The Promotion and Regulation of Online Gaming Bill, 2025, was recently passed in the Indian parliamentary Lok Sabha, known colloquially as the House of the People.
The bill aims to change how bettors in India interact with gambling completely and outlaw any gaming in the nation that provides “real money” staking.
India’s gambling reform outlaws monetary wagering
India’s Electronics and IT Minister Ashwini Vaishnaw spearheaded the bill, before the nation’s Cabinet considered it to an audible fanfare. He commented on the introduction of the legislation by saying, “Online gaming firms (are) misused for terror financing & money laundering.”
Wagering, staking, skill games, and games of chance that involve any money or wager are to be banned entirely in India. The bill will also make gambling advertising illegal across all forms of media and branding, which could land a hefty blow to sports sponsorships.
Cricket is India’s national sport, and teams and their stars could face a sobering financial situation when the bill comes into force, which will prohibit sponsorship branding as well as featured players promoting gambling.
Banking providers will also be prohibited from processing transactions that relate to any form of wagering or skill games. Any breach of the bill’s expected safeguards comes with hefty sentencing as well as financial penalties.
Indian Ministers split on new bill
Nabila Jamal, Executive Editor for the TV9 Network, interviewed Minister Shashi Tharoor, who had low hopes for the bill.
Shashi Tharoor on the online gaming bill
Says Govt should legalise & tax, not ban, as bans push it underground, fuel mafia…Adds such issues should go to a standing committee for detailed study@ShashiTharoor #gamingban https://t.co/u3trXwcvBI pic.twitter.com/u1LKM2m1e3
— Nabila Jamal (@nabilajamal_) August 20, 2025
He said, “When you ban it (gambling), unfortunately, it goes underground, and that’s where criminal mafias step in and profit from it. I don’t know why the government has chosen this path, but this is the stand they’ve taken.”
We reported that India generated $43.9 billion in gross gaming revenues across FY 2024, so this loss will need to be addressed in the wake of the new bill.
This is a steady increase of $2.0 billion from the previous 2023 financial year, so the nation is seeing a rise in staking, but its opportunities will soon be cut short.
The country’s coffers will take a substantial hit or lose out to illicit gambling providers if not regulated for the benefit of the nation, say those in opposition.
“It (gambling revenue) could actually serve as a useful source of revenue for the government if legalised, regulated, and taxed. In my view, many countries have studied this issue in great detail and concluded that legalising and taxing online gaming allows governments to generate funds that can be used for various worthy causes,” Tharoor concluded.
Esports are untouched by the ban
An interesting development in the wake of President Droupadi Murmu’s passing of the National Sports Governance Bill 2025 earlier this month (August 2025) is this new gambling legislation’s stance on Esports. Esports are now recognized as a sport in India by the National Sports Board (NSB).
“On one hand are casual games and Esports, which are educational and entertaining. On the other are online money games that have impacted the lives of multiple families,” said Vaishnaw.
The minister’s comments and the bill’s contents have caused a visible split between traditional real-money gaming and Esports. However, Esports can be wagered upon, and some competitions and teams are sponsored by betting providers or their subsidiaries.
As we reported, there has been an emergence of gaming brands exploring gambling sponsorship opportunities across the world.
Riot Games, the studio behind League of Legends (LoL) and VALORANT, has announced that esports betting and sponsorships will now be officially integrated into their marquee titles.
So it remains to be seen how India will ban sports gambling advertising in a rapidly growing market and allow Esports to thrive.
