India’s lower parliament on Wednesday voted a gambling bill that, promoting Esports and Casual Gaming with no monetary stakes, imposes a general ban on games in real money-in-depths to disturb the billions Extensive closure.
Entitled “Promoting and regulating the gaming bill, 2025, the legislation aims to prohibit games in real money at national level-whether they are based on ability either on luck-and to ban both advertising and related financial transactions, as the TechCrunch said.
“In this bill, priority has been given to the well -being of society and to avoid a big evil that enters society,” India Minister of Informatics Ashwini Vaishnaw said in parliament while introducing the bill.
The proposed legislation restricts banks and other financial institutions to allow real money games in the country. Anyone who offers these games could face imprisonment for up to three years, a fine of up to 10 million (about $ 115,000) or both. In addition, celebrities promoting such games on any media platform could be responsible for up to two years in prison or a fine of 5 million (about $ 57,000), the bill.
Vaishnaw said the decision to bring the legislation was to deal with various incidents of damage, including cases where people reportedly died of suicide after loss of money in the games. However, industry stakeholders greatly attribute these incidents to offshore bets and gambling applications, which many believe will not be addressed by this legislation.
“This law is obliged to deal with the differences as it fails to test proportionality in accordance with Article 19 (1) (g),” said Meghna Bal, director of New Delhi Think Tank Esya Center. “Instead of ensuring consumers, it disassembarks compatible land companies while opening the door wider for illegal offshore betting platforms that are the real source of economic damage.”
Article 19 (1) (g) of the Constitution of India guarantees citizens the right to pursue any profession or to pursue any possession, trade or businesses.
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Prior to the introduction of the bill to the Indian Parliament, the bodies of the industry wrote to Prime Minister Narendra Modi on Tuesday night, urging him to intervene. The letter-sent by the Federation of Indian Fantastic Sports, India’s Games Federation and the Federation of Pleasing, a copy of which was revised by TechCrunch-has been adopted that the proposed legislation could benefit “illegal companies”. These industry instruments represent dreamy sports, MPL, Winzo, Gameskraft, Nazara Technologies and Zupee, including real money gambling companies.
‘Close the regulated and responsible Indian platforms, will drive [millions] Players in the hands of illegal Matka networks, offshore gambling websites and operators operating with no assurance, consumer protection or taxation, “the letter said.
Industry’s three organizations estimate that the newly established real -money games in India have a combined estimate of ₹ £ 2 trillion (about $ 23 billion), generate cumulative revenue of $ 310 billion.
A similar letter was also written to Indian Interior Minister Amit Shah from these three industrial associations. Some Indians and global investors also calibrate their answer, a person who is familiar with the issue told TechCrunch. The source did not want to be called, as the plans are not yet public.
The publicly mentioned Nazara Technologies, which have previously invested in real money platforms, such as Pokerbaazi and Classic Rummy, saw its stock price 12.84% on Wednesday to close at 1,220 (about $ 14). However, the company clarified earlier in one Stock Exchange (PDF) that it does not have a “direct exposure” to real money gambling businesses and that these platforms do not contribute to its revenue based on the latest financially mentioned.
Dream Sports and MPL, two of the leading newly -established real money games, refused to comment, while Winzo, another popular start -up, did not answer.
The bill was passed by vocal vote in a noisy inferior house less than seven minutes after being introduced for discussion. It now requires approval by the upper body and the president to become a law.
Meanwhile, some companies in casual gaming and esports have greeted the traffic.
“We welcome this decision, as it allows us to focus on continuing concerns as a revenue business, maintaining and most importantly, building an excellent IP for India and the world, instead of explaining to our audiences.
Krafton is the South Korean gambling company behind the popular Battle Royale Pubg game.
Akshat Rathee, co -founder and chief executive of Esports Company Nodwin Gaming, which is also a subsidiary of Nazara Technologies, said the law should have clear discrimination between Esports, Online Gaming, Electronic Social Game and Online Gaming Money that is clearly defined and defined.
“The absence of expensive definitions has often led to ambiguity and merger around the term” esports “. Such overlays can confuse not only regulators but also for players, teams, investors and organizers who work hard to build this industry,” he said.
Bal also told TechCrunch that the bill “proves Esports”, as a principle created by the Indian government will decide the validity of Esports.
“The impact goes beyond the actual money games on the broader ecosystem of business depending on it and indeed presents serious consequences for AVGC [Animation, Visual Effects, Gaming, and Comics] The sector as a whole, “he said.
In 2023, the Indian Government modified The rules of information technology (intermediate guidelines and code of digital media ethics), 2021, to limit “user damage” from real money games and proposed self -regulatory bodies to limit illegal bets and gambling. However, the self -regulation approach declined due to conflict between industry interested parties on enforcement and standards.
New Delhi imposed a 28% tax on online gambling in 2023 to limit the game of real money, provoking a outcry by interested industry stakeholders. Top investors, including Tiger Global, Peak XV Partners and Kotak-kotak-promoted Modi to re-examine, warning $ 2.5 billion in deletions and the possible loss of one million jobs. However, the tax remained in force, even when companies challenged its retrospective application to the Supreme Court. Recent reports indicate that it can be revised up to 40% in accordance with the new rules.
Rohit Kumar, founder of the Public Policy Society based in New Delhi, The Quantum Hub, told Techcrunch that the real problem with the new bill is the lack of fair procedure.
“The regulation is necessary, but the abrupt movements such as it undermine India’s reputation as a stable, predictable investment destination. If there were concerns, the government should have marked them clearly from the beginning,” he said.
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