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India’s Online Money Gaming Ban Takes Hold as Dream Sports, Gameskraft Decline Legal Challenge

Officials say enforcement will target platforms and advertisers to curb harm, not players themselves.

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The words "India online gaming regulations" are displayed in front of an Indian flag in this Illustration taken September 14, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • After Presidential assent on August 22, the law prohibits all online games played for money or convertible credits regardless of skill, and bars advertising for such services.
  • Penalties include up to three years in prison and a ₹1 crore fine for offering or facilitating money games, and up to two years and ₹50 lakh for unlawful advertising, with offences cognisable and non-bailable.
  • CERT-IN has been tasked with blocking apps that continue to offer banned services, and authorities may pursue offshore operators, while the government readies a central regulator for e-sports and social games.
  • Major platforms including Dream11, MPL, WinZO, Zupee and PokerBaazi have halted paid contests and blocked new deposits, assuring users of wallet withdrawals; Dream11 told users deposit balances would be returned by August 29.
  • Industry responses have diverged, with reports of some firms preparing court petitions even as Dream Sports and Gameskraft say they will not sue and will pivot operations; listed gaming stocks such as Nazara have continued to slide and Dream11 has informed the BCCI it cannot continue team title sponsorship.