India’s new Online Gaming Bill is here, and it’s already sparking debates. The law bans all gambling-style games that disguised themselves as “normal games,” while at the same time promoting e-sports, social, and educational games.
Many see it as a step toward cleaning up the industry and ending the stigma around video games. Others argue it could backfire, drive people underground, and stifle innovation.
So what does this really mean for gamers, parents, and India’s growing gaming industry? Let’s break it down.
What the Online Gaming Bill Actually Says — And Is PUBG (BGMI) Banned in India?
Short answer: NO. PUBG is not banned in India under this bill. It doesn’t fall under the category of “Online Money Games.” Battle-royale titles may include microtransactions and can contribute to addictive behaviour that negatively affects a teen’s studies and mental health, but these issues do not make them gambling (We’ll discuss this aspect of video games in more detail later in the article.)
The new law makes a clear separation between gambling platforms and other video games. Here are the highlights:
Ban on real-money games
Any game where you deposit money or stakes with the hope of winning cash or rewards is banned — whether “skill-based” or luck-based.Encouragement for e-sports & social games
Games played for entertainment, competition, education, or skill development (without money involved) are now officially supported.New Online Gaming Authority
A national body will be created to register games, categorize them, and handle complaints.Heavy penalties
Running or advertising money games can mean up to 3 years in jail and fines up to ₹1 crore.Corporate responsibility
Not just companies, but their officers too, can be held accountable.
For the first time, the government is saying: not all games are the same.
🎮 Examples of Game Classifications
| 💰 Online Money Games | 👥 Social Games |
|---|---|
| Pay to play, win cash or material prizes Examples: Dream11, MPL, Zupee |
Play for fun — no betting, no cash prizes Examples: Ludo King, Candy Crush, Online Chess |
| 📚 Educational Games | 🕹️ E-Sports |
|---|---|
| Designed for learning and skill development Examples: Duolingo, coding/quiz apps |
Competitive, tournament-based, no gambling Examples: BGMI, Valorant, Fortnite, Call of Duty Warzone, FIFA etc |
Why the Government Took This Step — Understanding the Problem
This ban didn’t appear out of nowhere. It came after years of rising concerns.
Many apps disguised themselves as “skill games,” but in reality, the house always won. It’s like buying a soft drink without realizing it contains alcohol.
That’s why this bill is significant. By finally drawing a clear line between gaming and gambling, it may change public perception. Just as we know the difference between cola and whisky, tomorrow people may also understand the difference between a casual video game and a betting app.
The government’s reasons include:
- Addiction & public health — Countless cases of financial loss, debt, and even suicides were linked to gambling apps.
- National security — Reports revealed some platforms were misused for fraud, money laundering, even terror financing.
- Legal loopholes — While offline gambling was restricted, online versions kept slipping through.
The Stigma Around Gaming in India
Video games are vast and diverse — but in India, understanding has been limited. Many older generations (Gen Y and before) never grew up with gaming. So when Gen Z embraced it, parents saw games as distractions, harmful, or addictive.
As the Odia proverb says: “ଗୋଟେ ମାଛ ପୁରା ପୋଖରୀକୁ ମଇଳା କରିଦେଇଥାଏ” — one bad fish pollutes the whole pond.
That’s exactly what happened. Gambling-style apps tarnished the entire industry’s reputation. But video games are not just “time-pass.” They can be artistic, story-driven, puzzle-based, educational, or competitive. In fact, the global gaming industry is bigger than movies and music combined.
It’s like books: some are harmful, but that doesn’t mean all books are bad. Similarly, video games remain misunderstood in India. The stigma is fading slowly, but there’s still a long way to go.
“Digital Drugs?” The Other Side: Addictive Design in Games
As a game developer, I focus on casual, educational, and creative games. I’ve always disliked exploitative free-to-play & super addictive models that lure players in and then bleed money through microtransactions.
Still, I’ve faced the stigma. Once people know that I’m a game developer, I quickly get asked: “So Shree, you’re basically making digital drugs, aren’t you?”
And honestly, I get why people feel that way — because of the stigma we discussed, and because people are clearly losing their life savings.
Recently, it’s common to see in the news that kids spend their parents’ money on video games. Borrowing their parents’ phones, they make UPI payments for skins or items in mobile games. Because UPI is so frictionless, many parents only notice after their bank balance drops.
I highly recommend watching this episode of the The Billion Insights Podcast where I discuss this topic and explore the video-game industry in India in depth with leading game entrepreneur Nikhil Malankar. If you're interested in the world of gaming, you’ll likely find it useful.
So yes, banning gambling apps makes sense. But if the government truly wants to protect people, it must also regulate predatory design in free-to-play games — with parental controls, age restrictions, and transparency in monetization.
Is Banning Really the Answer?
Banning solves one issue, but history shows it often creates another.
In 1920, the US government decided to ban alcohol completely, thinking it would solve addiction and social problems. But what happened instead? People turned to black markets, smuggling, and dangerous adulterated alcohol that caused serious health issues and deaths. Organized crime flourished. Finally, after more than a decade, Prohibition was repealed in 1933, and alcohol was regulated instead of banned.
In India, do you remember TikTok? It was banned in 2020 for reasons like security and addiction. But once banned, people immediately shifted to dozens of clones. The addiction didn’t disappear — it just moved.
The same could happen with gambling apps. Offshore platforms, shady clones, or scam links could easily sneak back into India.
And the most ironic part: for years the government allowed these gambling apps to grow in India — they even let those companies sponsor our national cricket team by placing their big logos on the jerseys. In India, cricket is like a religion. With A-list celebrity endorsements, it was like pouring ghee on the fire. That legitimized gambling apps in the eyes of millions and misled them — like buying cola but getting alcohol in disguise.
This harmed individuals and damaged the reputation of legitimate gaming and the broader video‑game industry. Investor confidence fell: when the bill surfaced, Nazara Technologies — the only listed gaming company in India at the time — plunged sharply, wiping out more than 15% of its market cap in just a couple of days. As a country, we need to act to protect consumers, enforce clear regulations that distinguish gambling from skill‑based gaming, and restore trust in the gaming industry so genuine companies can attract long‑term investment.
Gaming as a Career: India’s Untapped Potential
Gaming is not just play — it’s work, art, and career.
As we discussed, globally the industry is bigger than movies and music combined. E-sports fill stadiums, streamers rival film stars in income, and developers create billion-dollar franchises.
India has the talent to shine. Just as IT put us on the global map, Indian developers already contribute to some of the world’s biggest titles. Yet at home, “gaming” still means only PUBG or Free Fire to most people.
The truth: game development is a serious career path. With the right recognition, it could become as influential as Indian cinema.
Final Thoughts
The Online Gaming Bill is a step in the right direction. By separating gambling from gaming, it helps reduce stigma and spark healthier conversations. But bans alone are not enough. History shows they backfire. What India truly needs is policies that tackle addiction, support developers, and nurture gaming as both an art form and a career. That said, I’m not completely pessimistic. If the ban is paired with proper planning, strong enforcement, and smarter regulation, we can curb most of the negative consequences and actually make this a turning point for the industry.
So what do you think about this new Online Gaming Bill? Do let me know. You can share your thoughts with me on Twitter.