The government of India to propose a comprehensive ban on real games

The real gaming companies with India moving to a comprehensive ban on its operations under new legislation.

The Indian government plans to ban real money games-whether it is based on skill or opportunity-according to the proposed online games list, for each draft by Techcrunch, which was also verified by three sources, including one consultant in the Indian Ministry of Information Technology and two people who work closely with the Indian government and real game companies.

It is suggested that the online games law promotion and regulation law be called online, 2025, legislation will restrict online games that involve real money shares and prohibit advertisements and financial transactions.

The draft said: “It is not permissible for any bank, financial institution or any other person to facilitate financial transactions or licensing the funds participating in, permit, assistance, incitement, motivation, or facilitating any transaction or license to pay for any online money games service.”

Games with real money were the largest revenue for the online game industry in India, which achieved $ 3.8 billion in the fiscal year 2023-24-increasing 23 % on an annual basis, per a Modern report Through VC, which focuses on Lumikai games. The company said that real games alone represent $ 2.4 billion in this total.

However, the sector was exposed to increased scrutinous amid general concerns about harm incidents – including cases where it is According to what was reported, individuals died due to suicide After losing large sums of money in games. The stakeholders in the industry are largely attributed Bets and gambling applications abroadThat is still working – and Even expansion Despite the repeated allegations by the federal authorities and government authorities for enforcement operations such as Site blocks and The account freezes.

In 2023, the Indian government I 28 % tax imposed on online games To reduce real play-a step called “catastrophic” and “unconstitutional” industry. Senior investors, including Tiger Global and Kotak, Prime Minister Moody urged to reconsider2.5 billion dollars warning and 1 million jobs in the job. The tax remained, although companies have He defied his request retroactively in the Supreme Court. However, it is It can rise to 40 % Under new rules, some recent reports proposed.

The legislation project states that real games companies may face imprisonment for up to three years, or a fine of 10 million dollars (about 115,000 dollars), or both. Likewise, celebrities who promote these games on any media platform can be responsible for up to two years or a fine of $ 5 million (about $ 57,000). The draft law also enables the Indian government to establish an organizational authority to oversee its implementation.

“Companies will be closed if the legislation enters into force,” said the founder of a leading Indian games company in the field of real money for Techcrunch, and asked not to disclose his identity because the draft is not general yet.

Investors are very anxious about the proposed law, which is expected to be submitted in the Indian Parliament soon for discussion.

An investor in Indian companies said: “All the only ones in this sector will be greatly affected by this step if it is related,” said an investor in Indian companies.

Dream SPORTS, Games24x7 and Winzo are among the best startups for games in India. Group, collect billions of dollars and generate large revenues from millions of users. India has the largest number of startups for real games in the world, per Tracxn, followed by the United States and the United Kingdom.

While many of these companies also offer unlimited games, one of the founder Techcrunch told that real money represents more than 85 % of their total revenues. They did not comment on the record because the draft is not general, but they agreed to share their ideas in an unknown way.

Likewise, some startups have explored home outside India to maintain their business amid organizational challenges in the country. The above -mentioned founder said that this was not yet fruitful for them, because they are currently born nearly 100 % of its revenues from India alone.

This is not the first time that New Delhi has been looking to organize real games. In 2023, the Indian government an average Information technology rules (intermediate instructions and digital media ethics rules), 2021, to reduce the “user damage” associated with real games. He suggested creating self -regulating bodies to agree to legitimate games while restricting illegal bets and gambling. However, the The self -regulation model stumbles Because of the conflicts between the stakeholders in the industry on implementation and standards.

Local reports suggested on Tuesday that the cabinet in India was Wipe the proposed bill To enter it in the lower parliament early Wednesday. However, the Indian government has not confirmed development.

The Indian Ministry of Information Technology did not respond to the request for comments.