The Promotion and Regulation of Online Gaming Act, 2025 The era of Fantasy is now over.

The Promotion and Regulation of Online Gaming Act, 2025

The Promotion and Regulation of Online Gaming Act, 2025 is a landmark legislation passed by the Indian Parliament to regulate online gaming, with a primary focus on prohibiting real-money online games. The Act aims to protect users from the adverse effects of online gambling, such as addiction and financial harm, while promoting responsible gaming practices. 

📜 Key Provisions of the promotion and Regulation of online game Act 2025

1. Prohibition of Online Money Games

The Act bans all online games that involve monetary stakes, regardless of whether they are based on skill, chance, or a combination of both.  This includes popular games like fantasy sports, rummy, poker, and other real-money gaming platforms.  The ban extends to offering, facilitating, advertising, and engaging in such games.  Penalties for violations include fines up to ₹2 crore and imprisonment up to 5 years.

2. Regulation of Online Gaming Platforms

A National Online Gaming Commission (NOGC) has been established to regulate and license online gaming platforms.  Only licensed platforms are permitted to operate, advertise, or conduct prize-based competitions.  The NOGC is empowered to classify games as permissible or prohibited and to enforce compliance with the Act's provisions  .

3. Consumer Protection and Responsible Gaming

The Act mandates platforms to implement measures such as:

User identity and age verification to prevent access by minors.

Features like self-exclusion, time limits, and deposit limits to promote responsible gaming.

Grievance redressal mechanisms and data protection measures.

Advertisements must include responsible gaming warnings and not target children  .

4. Financial Oversight

Licensed platforms are required to:

Hold user funds in segregated accounts to ensure refundability.

Comply with the Prevention of Money Laundering Act, 2002, and the Foreign Exchange Management Act, 1999.

Implement anti-money laundering and anti-fraud systems.

5. Dispute Resolution

The Act establishes an Online Gaming Appellate Tribunal to adjudicate disputes between users, licensees, and regulators.  The tribunal has powers of a civil court, and appeals from the tribunal lie directly before the Supreme Court of India.

6. Penalties for Violations

Offenses under the Act are categorized as cognizable and non-bailable.  Penalties for violations include:

Fines up to ₹1 crore for first-time offenders.

Fines up to ₹2 crore and imprisonment up to 5 years for repeat offenders.

Penalties for advertising or promoting online money games, including fines up to ₹50 lakh and imprisonment up to 2 years 

🎮 Impact on the Gaming Industry

The Act has led to significant changes in the online gaming landscape:

Shutdown of Real-Money Platforms: Major platforms like Dream11, MPL, PokerBaazi, and Zupee have ceased their real-money gaming operations in compliance with the new regulations  .

Legal Challenges: Some companies, such as A23, have filed legal challenges against the ban, arguing that it criminalizes skill-based games and undermines legitimate businesses  .

Shift to Free-to-Play Models: Platforms are exploring alternative business models, including free-to-play games and non-monetary rewards, to adapt to the new regulatory environment. 

✅ Summary

The Promotion and Regulation of Online Gaming Act, 2025 represents a decisive step by the Indian government to regulate the online gaming sector, focusing on consumer protection and the prohibition of real-money online games.  While the Act aims to curb the adverse effects of online gambling, it has also prompted significant changes in the industry, including the shutdown of real-money platforms and the exploration of alternative gaming models. 

Dream11 and all fantasy apps, online betting apps have been effectively banned in India following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.  This legislation prohibits all real-money online games, including fantasy sports platforms like Dream11, deeming them as forms of online gambling.  Consequently, Dream11 has ceased all paid contests and is no longer operational in its previous capacity.

Despite this, Dream11's parent company, Dream Sports, is pivoting to new business models. They have introduced "Dream Money," a financial services app under the Dream Suite Finance brand, marking their entry into the fintech sector . Additionally, Dream Sports has announced plans for "Dream11 3.0," focusing on free-to-play contests and other non-monetary gaming experiences.

The government has justified the ban by citing concerns over addiction, financial fraud, and the potential for money laundering associated with online gaming platforms . While some companies, like A23, have challenged the law in court, Dream11 has opted not to contest the ban and is instead concentrating on adapting to the new regulatory landscape.

For users, this means that Dream11's real-money gaming services are no longer available, and the platform has shifted its focus to alternative business ventures. 

With the enactment of the Promotion and Regulation of Online Gaming Act, 2025, all real-money fantasy gaming apps in India—not just Dream11—are effectively banned. This includes platforms that offer paid contests where users can win money based on outcomes in sports, eSports, or other events.

The government’s reasoning behind this broad ban is mainly:

• Risk of addiction among users.
• Potential for financial fraud or money laundering.
• Concern over users losing significant amounts of money.

So, any fantasy app operating under a real-money contest model has either stopped operations in India or pivoted to free-to-play formats or other business models, similar to what Dream11 is doing with its “Dream11 3.0” and non-monetary contests.

Kerala Lottery

The Kerala State Lotteries are not affected by the recent online gaming ban in India. This is because the Promotion and Regulation of Online Gaming Act, 2025, which prohibits real-money online gaming, specifically excludes physical state-run lotteries from its scope.

What Does This Mean?

Kerala State Lotteries are physical, offline lotteries operated by the Government of Kerala.  They include weekly, monthly, and bumper draws, and are sold through authorized agents across the state.  These lotteries have been running since 1967 and are a significant source of revenue for the state government.

The new law does not impact these physical lottery operations. Therefore, Kerala State Lotteries will continue to operate as usual. 

If you're interested in participating in Kerala's lottery, you can continue to do so through authorized physical outlets. The recent ban on online money gaming does not affect these traditional, state-run lottery systems. 

Other Gambling apps

Here’s the situation for games like Ludo, Aviator, and other real-money skill or chance-based games under the Promotion and Regulation of Online Gaming Act, 2025 in India:

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1. Real-Money Online Skill/Chance Games

• Games affected: Ludo, Aviator, Teen Patti, Rummy, Poker, and other apps where you can pay to play and win money.
• Status: Banned if they involve real-money betting.
• Reason: The law treats real-money stakes in online games as a form of gambling, which is prohibited.

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2. Free-to-Play Versions

• Games without real-money prizes (just points, coins, or in-game rewards) are allowed.
• Many apps are pivoting to “free-to-play” models or non-monetary rewards to stay operational.

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3. Skill vs. Chance Debate

• Some games (like Rummy or Ludo) claim to be skill-based, but if money is involved, they are still banned.
• Only offline, state-approved gambling or lotteries remain legal.

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4. Key Takeaway

• All real-money online gambling/skill games are effectively banned in India.
• You can still play these games for fun without money, but winning cash online is no longer legal.

This is indeed a major step by the government to curb online gambling and real-money games. The law is designed to protect people from financial losses, addiction, and fraud, which were increasing rapidly due to easy access to apps offering quick money.

Some key points about why this is significant:

1. Discourages Shortcut Mentality – Many people were treating fantasy games or real-money apps as a “quick-rich” route. This ban makes it clear that money should be earned through work, skill, or legitimate investment, not luck or betting online.

2. Protects Vulnerable Groups – Young adults and students were highly susceptible to losing money online. With these platforms banned, it reduces financial exploitation and gambling-related stress.

3. Reduces Fraud & Scams – Many online real-money apps had hidden terms, rigged outcomes, or fraudulent payment systems. By banning them, the government is cutting down avenues for cheating and money laundering.

4. Encourages Responsible Gaming – Free-to-play skill games are still allowed, so people can enjoy games without risking real money, promoting safer gaming habits.

In short, it’s a strong move to prioritize social and financial well-being over instant gratification.

List of game categories which are affected

Under the Promotion and Regulation of Online Gaming Act, 2025, all real-money online games are affected. Here’s a detailed breakdown of the game categories impacted:

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1. Fantasy Sports

• Platforms like Dream11, MPL, MyTeam11.
• Includes cricket, football, kabaddi, or any sport where you create a team and win money based on outcomes.

2. Card & Casino Games

• Rummy, Poker, Teen Patti, Blackjack, Baccarat.
• Real-money versions are banned even if they are skill-based.

3. Online Dice & Betting Games

• Ludo, Snakes & Ladders, Aviator, Crown & Anchor, online dice.
• If real money is involved, these are considered gambling and banned.

4. Lottery-Style or Prize-Based Games Online

• Any digital scratch cards, online raffles, or lucky draws with cash prizes.
• Physical state lotteries (like Kerala Lottery) are exempt, but online versions with real-money stakes are banned.

5. eSports Money Competitions

• Games like PUBG Mobile, Free Fire, Call of Duty Mobile, CS:GO if cash prizes are at stake.
• Free tournaments without money prizes are allowed.

6. Skill or Trivia-Based Cash Games

• Apps offering quiz games, puzzles, or challenges for real cash.
• Examples: Loco, BrainBaazi, Quizzy if real money is involved.

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✅ Key Takeaways

• Any game involving real money stakes (winning or losing) is banned online.
• Free-to-play versions or virtual rewards (coins, points, non-monetary prizes) are still allowed.
• Offline or government-approved gambling (like Kerala Lottery) remains legal.

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Earlier Scenario

• Indian courts, including the Supreme Court, had sometimes recognized certain online games as “skill-based” rather than gambling.
• For example, games like Rummy, Poker, and fantasy sports were considered legal if skill predominated over chance.
• Many platforms operated under this judicial allowance, which is why apps like Dream11, MPL, and PokerBaazi flourished.

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Current Scenario After 2025 Act

• Parliament passed the Promotion and Regulation of Online Gaming Act, 2025, overriding previous judicial interpretations.
• The Act bans all online games involving real-money stakes, whether they are skill-based or chance-based.
• This means that even games previously allowed by courts are now prohibited online.

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Implications

• Courts cannot overrule Parliament on this legislative matter; the law now clearly prohibits real-money online gaming.
• Companies must either shut down real-money operations or switch to free-to-play/non-monetary models.
• Users can no longer legally play skill or chance games online for money, even if previously allowed.

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In short, the government has decisively closed the loophole that allowed online real-money gaming to thrive under the “skill-based” defense.

The 2025 Online Gaming Act has had a ripple effect far beyond the apps themselves. Here’s how:

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Impact on Digital Content Creators

1. YouTube Channels

   • Channels that focused on fantasy sports tips, Ludo/Aviator strategies, online rummy, or quiz money games can no longer monetize or legally promote real-money contests.
   • Videos teaching how to win money on these apps are considered promoting illegal activities under the new law.

2. Websites & Blogs

   • Sites giving predictions, strategies, or team-building tips for real-money gaming apps are affected.
   • These websites may be taken down if authorities classify them as facilitating prohibited gambling.

3. Telegram & WhatsApp Groups

   • Groups that share daily fantasy teams, betting tips, or cash tournament alerts fall under the same ban.
   • Admins could be liable under the law for promoting illegal gaming.

4. Affiliate Marketing & Promotions

   • Influencers and content creators earning via referrals or affiliate links for fantasy apps have lost this revenue stream.
   • Platforms like Dream11 and MPL affiliates can no longer legally operate.

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Wider Consequence

• The law doesn’t just target the apps—it covers all forms of promotion, facilitation, and advertisement of real-money gaming.
• This effectively drowns the entire online ecosystem built around fantasy and real-money games: apps, strategies, content, and communities.