Can India's market survive a total real money gaming ban?
On day 1 of the conference at the Lumina Ballroom at City of Dreams, industry experts dissected India’s sweeping real money gaming prohibition during SiGMA South Asia 2025. The panel discussion, held on the main stage during day one of the conference, examined what operators can legally offer following the Promotion and Regulation of Online Gaming Act and how the market might reshape in the coming months.
The session brought together Oliver De Bono, founder of Quantum Gaming, with over 18 years of iGaming expertise, as moderator. Guest speakers included Jay Sayta, a Mumbai-based technology and gaming lawyer who has spent more than a decade representing gaming companies and currently fights the new legislation in the Supreme Court. Joining him was Pranati Pandit, an advocate at MMB Legal in Bangalore, whose practice spans esports, media, entertainment, and sports law.
From cabinet to Gazette in 72 Hours
The legislation moved with unprecedented speed through India’s parliamentary system. Sayta explained that between August 19 and 22, the bill passed through the cabinet, the Lok Sabha, the Rajya Sabha, and received presidential assent. “Within 72 to 96 hours, the bill was passed by the Cabinet, the Lok Sabha, the Rajya Sabha, and received presidential assent,” he noted. However, Section 13 states the law shall come into force on a date the government appoints by notification, and nearly four months later, that date has not yet arrived.
The act categorises online gaming into three distinct segments. Online Money Games face a total ban, with payment facilitators, advertisers, endorsers, and operators facing criminal liability carrying punishments of three years imprisonment once enforced. Online Social Games remain permitted under subscription models and in-app purchases, with an Online Gaming Authority of India planned to oversee implementation. Esports receives permission under six conditions, including participation in multi-sport events such as the Olympics.
Black markets and missing revenue streams
De Bono raised concerns about unintended consequences, noting that casino and sports betting have increased threefold or more since the announcement. “Full bans always lead to a black market,” he observed during the discussion. “Regulated spaces protect players; once players move to a black market, there are no protective frameworks.”
Pandit warned about the broader implications for data security and consumer protection. “It undermines our existing systems when you go to the black market,” she said. “People we’re trying to protect are no longer protected by our strong frameworks against money laundering, financial fraud, and data leakage, which is a big problem in India.”
The financial impact extends beyond operators. Sayta predicted the effects would become visible in the next cricket season, with the Indian Premier League facing substantial losses. “IPL itself will lose hundreds of millions of dollars in advertising revenue,” he stated, adding that grassroots sports would be hit even harder. The minister acknowledged in Parliament that they were aware there would be revenue loss and job losses, with Sayta estimating hundreds of thousands of jobs have been lost across advertising, technology, and affiliate sectors.
Constitutional challenge and regional comparisons
The speed at which the government passed the legislation suggests little chance of retraction. “They spent tremendous political capital passing this bill at such speed, prioritising it over other legislation,” Sayta said. Yet constitutional challenges remain. “We’ve challenged this law in the Supreme Court because we believe it’s unconstitutional. Gambling and betting are state subjects under the Constitution of India, meaning Parliament lacks legislative competence,” he explained.
Sayta encouraged Indian regulators to examine neighbouring Sri Lanka’s approach to gaming regulation. “India should look at their neighbour, Sri Lanka, and the framework Sri Lanka is bringing in. They’re aware of the risks and bring balanced regulation, licensing, creating a regulator, taxing the industry, and deriving benefits in revenue, jobs, and player protection.”
Payment processors have already ceased doing business with real money gaming companies in India, allowing only withdrawals. While crypto deposits present enforcement challenges, agencies are aware of the risks and will address them on a case-by-case basis, though with limited technical capacity, according to Sayta.
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