India Bans Online Betting Apps After Years of Growth and Addiction Concerns
India has outlawed online real-money gaming platforms, ending a years-long boom that saw hundreds of startups flourish but also left many players in debt and distress.
The new law, passed last week, makes it a criminal offence to operate or promote apps that allow users to bet cash on fantasy sports, poker, rummy, or other games. Violators face up to three years in prison and fines of up to 10 million rupees ($120,000), while individuals who play the games will be treated as victims rather than offenders.
Federal IT Minister Ashwini Vaishnaw told parliament that such platforms had harmed an estimated 450 million Indians, linking them to losses of more than 200 billion rupees and citing cases of depression and suicides. The source of those figures was not disclosed.
The ban has divided opinion. Supporters say it protects vulnerable people from predatory platforms, while critics argue it wipes out a thriving industry that contributed billions in taxes and created more than 200,000 jobs. Before the prohibition, around 400 companies operated in the sector, with fantasy sports giant Dream11 once serving as sponsor of India’s national cricket team.
“This is a massive setback,” said gaming lawyer Jay Sayta, who argued that regulation would have been a better option than a sudden prohibition. He noted that many firms had invested heavily on the back of previous court rulings that classified fantasy sports as “games of skill” rather than gambling. India’s Supreme Court in 2022 upheld that distinction, but the new law does not make such a separation, banning all cash-based games.
The legislation has forced major firms to halt operations, including Dream11, valued at $8 billion, and My11Circle, worth $2.5 billion and a partner of the Indian Premier League. Industry bodies warn that shutting down licensed platforms could push millions of players toward underground bookies, offshore websites and unregulated apps that lack consumer protections.
For some players, the damage has already been done. Kartik Srinivas, a 26-year-old who began betting in 2019, said he lost more than 1.5 million rupees in five years and fell into addiction. “I tried everything – apps, local bookies, international platforms. I was hooked,” he said, adding that awareness campaigns would have been a more effective safeguard than a blanket ban.
Critics of the industry, however, insist that even legitimate platforms were exploitative. Vishal Gondal, co-founder of gaming company nCore, said many users unknowingly played against bots programmed to favour the house. “Calling them games of skill is like branding alcohol as fermented juice,” he argued.
Despite earlier state-level bans and the imposition of a steep 28% tax on bets in 2023, India’s online betting industry had continued to attract investors and celebrity endorsements. Now, analysts say the federal ban represents the sharpest crackdown yet on an industry that went from rapid expansion to sudden collapse.
