The Case for Banning Real-Money Online Gaming in India

The recent passage of the Promotion and Regulation of Online Gaming Act, 2025 has sparked a nationwide debate, with platforms like A23 Rummy challenging its constitutionality in court. However, when examined in the context of India’s socio-economic realities, this ban is not only justified but also a critical step towards protecting vulnerable citizens and ensuring responsible digital governance.

Online Gaming: A Silent Epidemic

In the last decade, online real-money gaming has become widely accessible, with platforms offering games like rummy, poker, and fantasy sports easily downloadable from app stores. These games often lure players with welcome bonuses and advertisements, promoting the illusion of quick financial gains.

However, this accessibility has led to devastating consequences:

  • Families have lost savings, assets, and livelihoods to addictive gaming platforms.

  • There are increasing reports of mental health crises, suicides, and family breakdowns linked to gambling debt.

  • Platforms have blurred the line between games of skill and chance, making it easier for unsuspecting users to get trapped in cycles of loss.

Government data reveals that 450 million players have collectively lost ₹20,000 crore to such platforms, with most victims coming from small towns and semi-urban regions where financial literacy is limited.

Why A Blanket Ban Was Necessary

The new Act imposes a complete ban on real-money games and their advertising, while distinguishing between:

  • e-Sports (encouraged)

  • Social Gaming (encouraged)

  • Real-Money Games (banned)

Critics like A23 Rummy argue that this ban is arbitrary and unconstitutional, citing Article 19(1)(g), which protects the right to practice a trade or profession. Yet, this argument ignores a vital constitutional principle: the State’s duty to protect public welfare under Article 19(6).

The Constitution of India does not guarantee absolute freedoms. Trade or business activities that are inherently harmful or exploitative can be restricted or prohibited in the interest of society. Gambling, whether offline or online, has historically been regulated or banned in India because it poses a serious threat to public order, morality, and economic security.

Economic and Social Exploitation

Online gaming companies often highlight their contribution to the economy and jobs. A23 Rummy claims that over ₹23,440 crore in investments and thousands of jobs are at risk. However, this narrative overlooks the hidden social cost of online gambling:

  • Losses suffered by millions of Indians far exceed the investments earned by gaming firms.

  • Families forced into debt, often borrowing from informal lenders, face long-term poverty traps.

  • Addiction treatment costs and enforcement efforts drain public resources.

In fact, gaming companies profit disproportionately from vulnerable players, with a small percentage of users generating most of their revenue. This is not a sustainable or ethical business model in a mixed economy like India’s.

India’s Mixed Economy Perspective

India is a mixed economy, where economic liberalization is balanced with social welfare and regulation. While capitalist economies emphasize market freedom, India’s economic framework prioritizes citizen welfare, equitable distribution of resources, and regulation of harmful industries.

The ban on real-money gaming aligns with this principle by:

  • Protecting citizens from financial exploitation.

  • Preventing the normalization of gambling as a leisure activity.

  • Encouraging responsible tech entrepreneurship focused on skill-based and recreational gaming without monetary stakes.

Government’s Proactive Approach

The government’s strategy under this Act is comprehensive:

  • Criminal Penalties: Up to 3 years of imprisonment and ₹1 crore in fines for facilitators of real-money games.

  • Blocking Offshore Platforms: The Act empowers authorities to ban foreign gaming platforms targeting Indian users under the Information Technology Act.

  • Targeted Regulation: By encouraging e-sports and casual games, the Act avoids stifling innovation while eliminating predatory practices.

This approach demonstrates that the ban is not an attack on gaming but a measured intervention to protect public interest.

Lessons from Global Regulation

Countries like China, Singapore, and the UK have already implemented strict gaming laws to curb addiction. India’s move follows this trend, ensuring that technology does not compromise social and mental well-being.

Moreover, with online gambling losses disproportionately affecting low-income groups, this ban serves as a powerful step towards financial justice and consumer protection.

Why Legal Challenges Lack Merit

Platforms like A23 Rummy may argue that real-money games are games of skill, citing past judicial rulings that separated skill-based games from gambling. However, the 2025 Act redefines gaming to include any platform where users pay to win monetary rewards, removing the ambiguity that companies exploited.

This legislative clarity reflects the changing nature of technology, where sophisticated algorithms create addictive patterns, making even skill-based platforms harmful.

The challenge under Articles 19(1)(g) or claims of arbitrariness is unlikely to succeed because:

  • Public welfare restrictions are explicitly allowed under Article 19(6).

  • The government’s move is backed by empirical data and public interest arguments.

Conclusion: A Step Towards Digital Responsibility

India’s ban on real-money gaming is a progressive move in the age of tech-driven exploitation. As a mixed economy, India must balance entrepreneurship with social welfare. The Promotion and Regulation of Online Gaming Act, 2025 achieves this balance by:

  • Curbing predatory gaming practices.

  • Protecting vulnerable users from exploitation.

  • Promoting innovation in safe, non-monetary gaming spaces.

While gaming firms may see this as a blow to their business, history will remember this legislation as a landmark reform in digital governance, setting a precedent for how nations can prioritize citizens over profits in the technology sector.


Location: Pune, Maharashtra, India

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