Betting on Bans: The Unintended Fallout of Online RMG Ban Under the Online Gaming Act 2025
The recent Promotion and Regulation of Online Gaming Act, 2025, that came into force in August, has been one of the most widely anticipated regulations in the digital entertainment industry. Among provisions such as promoting esports and licensing of online gaming, the legislation notably introduces a blanket ban on real-money gaming (RMG). The rationale behind this was to reduce its addictive effects, protect minors, and limit the circulation of black-money. However, in reality, the Act has spawned apprehension about the legislative process, regulatory redundancy, and unintended consequences that can shift users and revenue to offshore operators.
From Debate to Prohibition: How the Act was Passed
The Promotion and Regulation of Online Gaming Act was passed as a central law, providing the earlier fragmented state laws on online betting and gambling with an overarching framework. Proponents argue that, among other provisions, some kind of unified national framework was needed to deal with the scale of online betting due to its detrimental impact on young users. The current Act is a direct transition to criminalisation rather than the swings of self-regulation and partial restrictions used during the previous decade of incremental experiments in regulation. Stakeholders in the industry believe that this type of sudden, blanket action creates uncertainty and erodes confidence in the system in the long run. Further, critics have pointed out that the Bill was passed without adequate Parliamentary deliberation. A question has been raised about whether procedural safeguards were upheld.
Prohibition of Online RMG
Within the Indian context, a distinction has long been drawn between games of skill and games of chance, with the latter, like a lottery or a casino, being severely prohibited under state laws, whereas the former, like rummy or fantasy sports, have generally been allowed after being recognized as skill-based by court authorities. The Online Gaming Act of 2025 abolishes this distinction on the internet, thus banning all RMG actions that include cash transactions, regardless of skill or chance. The act also criminalises the advertising, facilitation, and hosting of such sites, thereby penalizing offshore operators with an Indian customer focus, and subjecting their payment gateways, app stores, and advertisers under its jurisdiction to penalties.
The Problem of Overlap
One potential issue that the Act presents is its overlap with the existing laws. The IT Rules 2023 mandate intermediaries in the gaming sector to appoint compliance officers, submit monthly reports, and undergo due diligence. The new Act introduces a three-level classification of games, whereas the advisories of the Central Consumer Protection Authority (CCPA) under the Consumer Protection Act treat online betting as an unfair trade practice.
This multiplicity of regulations builds a maze where different Ministries and state governments have overlapping jurisdiction. Policy experts caution that such an overlap can create enforcement challenges, punish players who act within the law, and leave offshore malefactors undetected.
Unintended Consequences: Driving Users Offshore
Outright prohibition will hardly ever remove demand; it will only push it out. Offshore sites have taken advantage of the situation as Indian operators like Dream11 shut down their money games after the ban. It has already been reported that there is aggressive advertising by foreign betting companies that are not registered in India, most of which have backend infrastructure that cannot be regulated by the Act (Storyboard18).
This diversion of users to unregulated markets has two main risks. First, Indian players are deprived of the consumer protection offered to them in local regulation, and their data can be sent to suspicious foreign organizations. Second, the government loses control over the money flow that can be transferred via informal channels or cryptocurrencies or other obscure systems. Industry analysts are alerting that such developments may only worsen the issue of black-money instead of solving it (IGamingBusiness).
Advertising, Age Gating, and Digital Rights
The Act has also strengthened advertisement regulations, aligning with advisories issued by the Advertising Standards Council of India, which prohibits the targeting of minors. However, critics believe that the application remains inadequately enforced, and children can with comparative ease access unregulated overseas applications. In the absence of complementary digital literacy programs and strong parental controls, these limitations can be effectively superficial instead of real.
Privacy advocates also warn that frequent prompts, vague messages, or invasive surveillance can weaken the digital rights of users instead of strengthening them. Overregulation has also been found to create banner blindness in global contexts where users ignore warnings without first clearly understanding them.
Enforcement Challenges
The Act puts a lot of responsibilities on many stakeholders, including the Ministry of Information and Broadcasting (MIB) and the Reserve Bank of India (RBI). Platforms like Google Play and Apple App Store are expected to verify government-approved lists of compliant gaming apps and remove non-compliant or banned ones, as directed by the MIB and the RBI. Although this pressure may motivate intermediaries to collaborate, it may also have a risk of overreach when it is applied unequally or in a political way.
According to the experts, the solution should be underpinned by technology itself. Artificial intelligence can be used to identify illegal advertisements, track illegal gaming in children, and trace payment streams. At the same time, the regulators should be able to issue final lists of either compliant or non-compliant applications to advise the consumers and intermediaries alike. Without such practical provisions, enforcement risks remaining patchy.
Online Gaming Rules
On 1 October 2025, the government issued a draft of the Online Gaming Rules in accordance with the Promotion and Regulation of Online Gaming Act. The regulations focus on the creation of the compliance frameworks, define the classification of the allowed gaming activities, and prescribe grievance-redressal mechanisms aiming to promote the protection of the players and procedural transparency. However, the draft does not revisit or soften the existing blanket prohibition on real-money gaming (RMG) and, hence, the questions about the effectiveness of enforcement and regulatory clarity remain open (Times of India, 2025).
Protecting Consumers Without Stifling Innovation
The ban highlights a larger conflict, i.e., the protection of the vulnerable users without stifling an industry that has traditionally contributed to innovation, jobs, and the collection of tax revenue. Online gaming has significantly added to the GST collections, and the sudden shakeup brings fiscal concerns (Reuters).
Several legal objections to the Act have already been brought, asking whether the Act is constitutional, especially as to whether the restrictions are proportional to the right to trade. The outcome of such cases will define the future trajectory of the digital economy of India (Reuters).
Way Forward
Instead of outright prohibition, a more balanced approach that incorporates regulation and consumer protection is suggested by the experts. Key measures could include:
- A definite difference between games of skill and games of chance, with proportionate regulation.
- Age confirmation and campaign against online illiteracy to protect the underage population.
- Enhanced advertising and payments compliance requirements and enforceable non-compliance penalty.
- Coordinated oversight among different ministries to prevent duplication and regulatory struggle.
- Leveraging AI and fintech to track illegal financial activities (black money flows) and developing innovation.
Conclusion
The Online Gaming Act 2025 addresses social issues, such as addiction, monetary risk, and child safety, that require governance interventions. However, the path it follows to this end, that of total prohibition, is more likely to spawn a new set of issues instead of providing solutions because it will send consumers to offshore sites, undermine consumer rights, and slow innovation.
For India, the real challenge is not whether to prohibit online money gaming but how to create a balanced, transparent, and enforceable framework that protects users while fostering a responsible gaming ecosystem. India can reduce the adverse consequences of online betting without keeping the industry in the shadows with better coordination, reasonable use of technology, and balanced protection.
References:
- India's Dream11, top gaming apps halt money-based games after ban
- India online gambling ban could drive punters to black market
- Offshore betting firms with backend ops in India not covered by online gaming law
- The Great Gamble: India’s Online Gaming Ban, The GST Battle, And What Lies Ahead.
- Game Over for Online Money Games? An Analysis of the Online Gaming Act 2025
- Government gambles heavily on prohibiting online money gaming
- Online gaming regulation: New rules to take effect from October 1; government stresses consultative approach with industry
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Executive Summary:
A viral message is circulating claiming the Reserve Bank of India (RBI) has banned the use of black ink for writing cheques. This information is incorrect. The RBI has not issued any such directive, and cheques written in black ink remain valid and acceptable.
Claim:
The Reserve Bank of India (RBI) has issued new guidelines prohibiting using black ink for writing cheques. As per the claimed directive, cheques must now be written exclusively in blue or green ink.
Fact Check:
Upon thorough verification, it has been confirmed that the claim regarding the Reserve Bank of India (RBI) issuing a directive banning the use of black ink for writing cheques is entirely false. No such notification, guideline, or instruction has been released by the RBI in this regard. Cheques written in black ink remain valid, and the public is advised to disregard such unverified messages and rely only on official communications for accurate information.
As stated by the Press Information Bureau (PIB), this claim is false The Reserve Bank of India has not prescribed specific ink colors to be used for writing cheques. There is a mention of the color of ink to be used in point number 8, which discusses the care customers should take while writing cheques.
Conclusion:
The claim that the Reserve Bank of India has banned the use of black ink for writing cheques is completely false. No such directive, rule, or guideline has been issued by the RBI. Cheques written in black ink are valid and acceptable. The RBI has not prescribed any specific ink color for writing cheques, and the public is advised to disregard unverified messages. While general precautions for filling out cheques are mentioned in RBI advisories, there is no restriction on the color of the ink. Always refer to official sources for accurate information.
- Claim: The new RBI ink guidelines are mandatory from a specified date.
- Claimed On: Social Media
- Fact Check: False and Misleading
Executive Summary:
A widely circulated claim on social media indicates that six soldiers of the Assam Rifles were killed during a retaliatory attack carried out by a Myanmar-based breakaway faction of the United Liberation Front of Asom (Independent), or ULFA (I). The post included a photograph of coffins covered in Indian flags with reference to soldiers who were part of the incident where ULFA (I) killed six soldiers. The post was widely shared, however, the fact-check confirms that the photograph is old, not related, and there are no trustworthy reports to indicate that any such incident took place. This claim is therefore false and misleading.
Claim:
Social media users claimed that the banned militant outfit ULFA (I) killed six Assam Rifles personnel in retaliation for an alleged drone and missile strike by Indian forces on their camp in Myanmar with captions on it “Six Indian Army Assam Rifles soldiers have reportedly been killed in a retaliatory attack by the Myanmar-based ULFA group.”. The claim was accompanied by a viral post showing coffins of Indian soldiers, which added emotional weight and perceived authenticity to the narrative.
Fact Check:
We began our research with a reverse image search of the image of coffins in Indian flags, which we saw was shared with the viral claim. We found the image can be traced to August 2013. We found the traces in The Washington Post, which confirms the fact that the viral snap is from the Past incident where five Indian Army soldiers were killed by Pakistani intruders in Poonch, Jammu, and Kashmir, on August 6, 2013.
Also, The Hindu and India Today offered no confirmation of the death of six Assam Rifles personnel. However, ULFA (I) did issue a statement dated July 13, 2025, claiming that three of its leaders had been killed in a drone strike by Indian forces.
However, by using Shutterstock, it depicts that the coffin's image is old and not representative of any current actions by the United Liberation Front of Asom (ULFA).
The Indian Army denied it, with Defence PRO Lt Col Mahendra Rawat telling reporters there were "no inputs" of such an operation. Assam Chief Minister Himanta Biswa Sarma also rejected that there was cross-border military action whatsoever. Therefore, the viral claim is false and misleading.
Conclusion:
The assertion that ULFA (I) killed six soldiers from the 6th Assam Rifles in a retaliation strike is incorrect. The viral image used in these posts is from 2013 in Jammu & Kashmir and has no relevance to the present. There have been no verified reports of any such killings, and both the Indian Army and the Assam government have categorically denied having conducted or knowing of any cross-border operation. This faulty narrative is circulating, and it looks like it is only inciting fear and misinformation therefore, please ignore it.
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March 3rd 2023, New Delhi: If you have received any message that contains a link asking users to download an application to avail Income Tax Refund or KYC benefits with the name of Income Tax Department or reputed Banks, Beware!
CyberPeace Foundation and Autobot Infosec Private Limited along with the academic partners under CyberPeace Center of Excellence (CCoE) recently conducted five different studies on phishing campaigns that have been circulating on the internet by using misleading tactics to convince users to install malicious applications on their devices. The first campaign impersonates the Income Tax Department, while the rest of the campaigns impersonate ICICI Bank, State Bank of India, IDFC Bank and Axis bank respectively. The phishing campaigns aim to trick users into divulging their personal and financial information.
After a detailed study, the research team found that:
- All campaigns appear to be an offer from reputed entities, however hosted on third-party domains instead of the official website of the Income Tax Department or the respective Banks, raising suspicion.
- The applications ask several access permissions of the device. Moreover some of them seek users to provide full control of the device. Allowing such access permission could result in a complete compromise of the system, including access to sensitive information such as microphone recordings, camera footage, text messages, contacts, pictures, videos, and even banking applications.
- Cybercriminals created malicious applications using icons that closely resemble those of legitimate entities with the intention of enticing users into downloading the malicious applications.
- The applications collect user’s personal and banking information. Getting into this type of trap could lead users to face significant financial losses.
- While investigating the impersonated Income Tax Department’s application, the Research team identified the application sends http traffic to a remote server which acts as a Command and Control (CnC/C2) for the application.
- Customers who desire to avail benefits or refunds from respective banks, download relevant apps, believing that the chosen app will assist them. However, they are not always aware that the app may be fraudulent.
“The Research highlights the importance of being vigilant while browsing the internet and not falling prey to such phishing attacks. It is crucial to be cautious when clicking on links or downloading attachments from unknown sources, as they may contain malware that can harm the device or compromise the data.” spokesperson, CyberPeace added.
In addition to this in an earlier report released in last month, the same research team had drawn attention to the WhatsApp messages masquerading as an offer from Tanishq Jewellers with links luring unsuspecting users with the promise of free valentine’s day presents making the rounds on the app.
CyberPeace Advisory:
- The Research team recommends that people should avoid opening such messages sent via social platforms. One must always think before clicking on such links, or downloading any attachments from unauthorised sources.
- Downloading any application from any third party sources instead of the official app store should be avoided. This will greatly reduce the risk of downloading a malicious app, as official app stores have strict guidelines for app developers and review each app before it gets published on the store.
- Even if you download the application from an authorised source, check the app’s permissions before you install it. Some malicious apps may request access to sensitive information or resources on your device. If an app is asking for too many permissions, it’s best to avoid it.
- Keep your device and the app-store app up to date. This will ensure that you have the latest security updates and bug fixes.
- Falling into such a trap could result in a complete compromise of the system, including access to sensitive information such as microphone recordings, camera footage, text messages, contacts, pictures, videos, and even banking applications and could lead users to financial loss.
- Do not share confidential details like credentials, banking information with such types of Phishing scams.
- Never share or forward fake messages containing links on any social platform without proper verification.
