India’s USD 4 billion online gaming market to take a hit  due to new regulation : Analysts

Biznextindia : India’s online gaming market is valued at almost USD 4 billion, which will take a hit following from this – banning RMG may also have an impact on people employed in the gaming sector, said Vikram Jeet Singh, Partner at BTG Advaya.

“The Promotion and Regulation of Online Gaming Bill, 2025 was tabled in Parliament today. This bill seeks to ban “online money gaming”, which is the “depositing of money” for “winning money or other stakes”. This impacts games such as rummy, poker, etc., where winning money is possible” he said.

Under Indian law games of skill are legal, and games of chance are considered gambling and prohibited. Wagering money on games of skill was legal until now. The bill in Parliament follows a regulatory trend against RMG even in games of skill – the Madras High Court in June 2025 had upheld restrictions on Real Money Games in Tamil Nadu. Now, pursuant to these new regulations, even games of skill that involve real money can be banned. Advertising RMG will be prohibited and promoting this may lead to sanction for advertisers as well.

“One reason that has been suggested for this ban is the alleged use of RMG for money laundering activities. India’s online gaming market is valued at almost USD 4 billion, which will take a hit following from this – banning RMG may also have an impact on people employed in the gaming sector. Gaming companies have been subject to a 28% GST levy, in the past. But the bill indicates a move from regulating to banning, when it comes to RMG” he added.