The government in India closed real-money online gaming during August without authorising enforcement yet. The Indian government commanded immediate closure three months ago for the country’s real-money online gambling sector. The act forbids any app or online platform offering money-based gaming services. No distinction exists between chance games and skill-requiring games like fantasy sports. Esports, educational games, and social gaming receive active promotion simultaneously. The government hasn’t issued a notification permitting law enforcement despite the ban’s speedy passage. Rs21 crore (US$113,000) fines await offenders, plus three years jail time maximum. Criminal charges could hit celebrities and influencers backing real-money games. Players escape punishment under current rules.

Minister Says RMG Prohibition Prevents Major Social Harm

Ban supporters highlighted gambling risks, including financial losses and psychological damage. India Technology Minister Ashwini Vaishnaw claimed RMG platforms exploit users with false profit promises. The act avoids big evil creeping into society, according to his statement. JCDC Sports founder and CEO Jaya Chahar believes the legal industry ban won’t stop online gambling. She told ABC Asia it pushes fan engagement from regulated Indian platforms to unregulated offshore spaces. Consumer protection intent gets defeated through this action. Former Dream11 communications officer Smrita Singh Chandra criticised the overnight ban implementation. Critics, including Chandra, said the introduction happened without transition, nuance or economic reality consideration. Platform illegality declaration after years of validation, taxation, and judicial recognition isn’t just wrong. Deep ethical violations exist, she wrote.

RMG Closes Operations While Losses Accumulate

The latest earnings quarter showed a loss clearly. Economic Times reported that US-based Flutter Entertainment posted $556 million impairment after the shutdown of its India subsidiary Junglee Games. Canadian private equity firm Clairvest Group wrote off its Head Digital Works investment, an A23 Rummy operator. Nazara Technologies from India recorded $103.2 million impairment on Moonshine Technologies investment. PokerBaazi’s parent company owns Moonshine Technologies. Fintech firm Paytm recorded a 98% net profit loss, booking $21.4 million impairment on First Games Technology loan. RMG platforms recorded asset write-downs exceeding $840 million over 90 days, reportedly. About 7,000 Indian workers lost employment additionally.

Ban Generates Major Regulatory Uncertainty

India will emphasise esports and online social games moving forward. Physical dexterity, mental agility, strategic thinking or similar skills must determine outcomes solely. Media technology attorney Probir Roy Chowdhury told Fortune India that the RMG ban might chill investment. Sharp policy reversal abandons the government’s earlier self-regulation plan under the 2021 IT Intermediary Rules. Drastic shift signals the government can arbitrarily dismantle thriving sectors, creating significant regulatory risk. RMG contributed approximately Rs20,000 crore (US$42.256 billion) yearly in direct and indirect taxes before the ban. Nearly 20,000 direct and indirect jobs received support as well.