At the CrossRoads: The RMG Ban & the Global Landscape
Introduction
The enactment of the Online Gaming (Promotion and Regulation) Act, 2025 has a significant impact, resulting in considerable changes to the structure of the Indian gaming industry. The ban on Real-Money Games (RMG), including fantasy sports, rummy, and poker, aims to curb addiction, illegal betting and most importantly, financial exploitation.
However, this decision sent ripples throughout the industry, resulting in players, companies and their investors re-strategising their plans to move forward. This approach, however, is a sharp contrast to how other nations, including the UK, Singapore and others, regulate online gaming. This, as a result, has also raised doubts about the ban and calls into question whether this is the right move.
Industry in Flux - The resultant Fallout
- MPL’s Layoffs: The Mobile Premiere League has so far laid off nearly 60 per cent of its workforce, with the CEO of the company openly admitting that the company is no longer able to make money in India.
- Dream11’s Lost Revenue: Having seen a position of being a market leader, the company has now witnessed its 95 per cent revenue wiped out, resulting in raised alarms among investors.
- A23’s Legal Move: The company chose to move the Karnataka High Court under the argument that the ban also ends up unfairly criminalising skill-based games that were earlier classified differently from gambling by the courts.
The new face of eSports: With RMGs outlawed, the focus is now on esports, including casual mobile gaming, console/PC gaming, and creating new opportunities and also leaving a void for RMG revenue companies.
Regulations Around the World - & India
India has adopted a prohibition model, whereas many other countries have developed regulatory frameworks that allow sectoral expansion under monitoring.
United Kingdom:
- Online gaming is regulated by the UK Gambling Commission.
- RMGs are legal but subject to strict licensing, age verification and advertising rules.
- Self-exclusion schemes are a must, offered by operators along with tools to prevent gambling addictions.
United States
- State-driven regulations that vary from state to state.
- States including Nevada and New Jersey allow casinos both online and offline, while other states prohibit them completely.
- Regulation for skill-based fantasy games is fragmented but generally legal.
China
- Great focus on controlling and restricting gaming addictions among minors.
- Time limits are enforced for players under 18 (usually as little as 3 hours per week).
- Gambling has been deemed illegal; however, esports and casual gaming operate within China’s regulated gaming ecosystem, subject to certain compliance.
Singapore
- The Remote Gambling Act regulates chance-based games, while other eSports and skill-based games operate out of its jurisdiction and are regulated separately.
- Online gambling isn't completely banned, but is operated under restrictions.
- Only Licensed operators under strict controls are allowed by the government to operate to avoid and prevent black-market alternatives.
Australia
- Regulates under the Interactive Gambling Act.
- Sports betting and certain licensed operators are allowed, while most of the other online gambling services are prohibited.
- Restrictions on advertising and real-time interventions allow emphasis on harm minimisation.
India’s Approach - Comparison
The Online Gaming (Promotion and Regulation) Act, 2025 introduces a prohibition model for real money games. This differs from jurisdictions such as the UK and US, which have implemented regulatory frameworks to oversee the sector. In India, earlier legal interpretations distinguished between games of skill and games of chance. The new legislation provides a single treatment for both categories, which marks a departure from previous judicial pronouncements.
Conclusion
At present, India’s gaming sector is navigating layoffs, court cases, and a pivot towards esports post the RMG ban. Keeping in mind that the intent of said ban is the protection of citizens, the industry also argues that regulation, instead of prohibition, offers a sustainable approach to the issues. On the other hand, on the global scale, most nations prefer controlled and licensed models that ensure consumer safety and work on preserving both jobs and revenues. However, India’s step is diverging from such a model. The lack of safeguards and engagement in the real money gaming industry led to a prohibition model, underscoring that in sensitive digital sectors, early regulatory alignment is essential.
References
- India online gaming ban: Global rules & regulation bill 2025
- Level up or game over? Decoding India’s gaming industry post RMG ban
- MPL lays off 350 employees after GST rules, RMG crackdown
- India’s Dream11 hit by online gaming ban, revenue slumps
- Online gaming ban: A23 moves Karnataka HC against government decision
- UK Gambling Commission – Licensing and Regulations
- Fantasy Sports & Gambling Law – State by State
- China’s gaming restrictions for minors
- Singapore Remote Gambling Act – Ministry of Home Affairs
- Australian Communications and Media Authority – Interactive Gambling Act