India has finally taken action against online gambling and real money games 🎰. The "Online Gaming Promotion and Regulation Act" was swiftly passed at the end of August, approved by both houses, signed by the president in a few days, and will officially take effect on October 1. A one-sentence summary of the law: Any online games involving real money, whether based on luck or skill, are completely banned.
Originally, Indian courts distinguished between "skill-based games" and "pure luck gambling." 👳🏾♀️For example, Rummy and Fantasy Sports were allowed to exist. But this new bill overturns this tradition: anything involving real money is outright stopped.
1️⃣Companies and courts are not satisfied, and there is still room for negotiation
Companies like Dream11 and MPL were cut off overnight. MPL even reportedly laid off 60% of its staff and began transitioning to "free games" or moving to overseas markets.
Secondly, A23 has filed lawsuits in several state high courts, claiming that the ban violates the constitutional "freedom of business." The Supreme Court has also taken over, consolidating lawsuits from various regions.
In other words, this matter is not over yet, and it may ultimately depend on the Supreme Court to determine: whether the central government has the authority to regulate this?
Don't forget, the constitution stipulates that "gambling and betting" fall under the jurisdiction of state governments.
This time, the central government's forceful legislation is stepping on the federal red line. The struggle between state vs. central government could become a key breakthrough in the future.
However, the bill is now law and cannot be overturned immediately, but there are still gray areas in implementation: such as how to divide advertisers, payment providers, and other suppliers, the industry is still communicating with the government, trying to preserve a "non-gambling" business model.
If the Supreme Court determines that the central government has overstepped, it might force the government to relax some provisions. So, there is still room for negotiation in the medium term.
2️⃣Neighboring countries become the biggest beneficiaries?
The demand from players will not disappear due to legislation. When the door is locked, people will look for windows. Where are those windows? Probably in South Asia's neighbors.
Sri Lanka: Currently actively developing its gambling industry. The "Gambling Regulatory Authority Act" passed in 2025 brings both online and offline gambling under a formal licensing system. For operators driven out of India, this is practically an "official alternative."
Bangladesh, Pakistan: The underground market has never stopped, with plenty of gray areas. Especially during the cricket season, betting scales can reach hundreds of millions of dollars. For the gray market, this is a new blue ocean.
In other words, India's ban has not eliminated gambling but has pushed the market into the hands of its neighbors.
India's new law is like throwing a bucket of cold water on the industry, but it may not really "cool down." The demand from players remains strong, and companies will naturally look for outlets.
In the short term, the Indian market will shrink, but the regional gambling ecosystem will be ignited: Sri Lanka might take the opportunity to legitimize, while Bangladesh and Pakistan will carry more gray capital.
In a nutshell: India has closed its door, but the world outside the window has already heated up.
This article cites Telegram: PASA Gambling Depth
