The Indian government ordered an immediate shutdown three months ago of the country’s real-money online gambling sector, from poker and rummy to fantasy sports. Three days after Parliament enacted the Promotion and Regulation of Online Gaming Bill 2025 on 21 August, President Droupadi Murmuon signed the bill into law.

The act prohibits any app or online platform that offers money-based gaming or related services. It makes no distinction between games of chance and games requiring an element of skill, such as fantasy sports. At the same time, it actively promotes esports, educational games and social gaming.

Despite the ban’s speedy passage, the government has yet to issue a notification that permits enforcement of the law. Offenders face fines of up to Rs21 crore (US$113,000) and/or up to three years in jail. Celebrities and influencers who back real-money games could also face criminal charges. Players are not subject to punishment.

Minister: RMG ban ‘avoids a big evil’

Proponents of the ban cited the risks associated with gambling, including financial losses and psychological harm. India Technology Minister Ashwini Vaishnaw said RMG platforms “exploit users with false promises of profit”. In his view, the act “avoids a big evil that is creeping into society”.

Jaya Chahar, founder and CEO of JCDC Sports, said banning the legal industry will do little to stop online gambling. In fact, she told ABC Asia, it “pushes fan engagement away from regulated Indian platforms into unregulated offshore spaces, which defeats the very intent of consumer protection”.

Smrita Singh Chandra, former communications officer for RMG provider Dream11, slammed the “overnight ban”. Chandra joined other critics in saying it was introduced “without transition, nuance or consideration of economic realities”.

“Declaring a platform illegal after years of validation, taxation and judicial recognition isn’t just wrong,” she wrote. “It is deeply unethical.”

RMG shuts down, losses mount up

Losses were reflected in the latest earnings quarter. According to the Economic Times, US-based Flutter Entertainment posted a $556 million impairment following the shutdown of India subsidiary Junglee Games. Canadian private equity firm Clairvest Group wrote off its investment in Head Digital Works, operator of A23 Rummy.

India’s Nazara Technologies recorded an impairment of $103.2 million on its investment in Moonshine Technologies, parent of PokerBaazi. Fintech firm Paytm recorded a 98% net profit loss after booking a $21.4 million impairment on a loan to First Games Technology.

In total, over 90 days RMG platforms have reportedly recorded asset write-downs of more than $840 million. In addition, about 7,000 Indian workers have lost their jobs.

Ban creates ‘significant regulatory risk’

Going forward, India will emphasise esports and online social games whose “outcome is determined solely by factors such as physical dexterity, mental agility, strategic thinking or similar skills”.

But media and technology attorney Probir Roy Chowdhury told Fortune India the RMG ban could have a chilling effect on investment. “This … sharp policy reversal [abandons] the government’s earlier plan for industry self-regulation under the 2021 IT Intermediary Rules,” Chowdhury said. “Such a drastic shift signals to investors that the government can arbitrarily dismantle a thriving sector, creating significant regulatory risk.”

Prior to the ban, RMG contributed approximately Rs20,000 crore (US$42.256 billion) per year in direct and indirect taxes. It also supported nearly 20,000 direct and indirect jobs.