INDIA BANNING real money games:
India’s Online Gaming Bill: Money Plays Out, e-Sports Stay In
What happened
The Union Cabinet approved the Regulation & Promotion of Online Gaming Act and will introduce it in Lok Sabha. The headline: the government plans to ban money-based gaming transactions — banks and payment providers will be barred from processing payments for real-money betting. Ads for gambling will be prohibited, while e-sports and skill-based non-monetary games will be promoted.
Key rules:
No bank/payment rails for real-money gaming.
Ads banned for money games.
MeitY to act as central regulator with power to block unregistered operators.
Criminal penalties for illegal online betting.
States still have a role (gambling is mainly a State subject), so implementation may vary.
Why now:
Officials cite rising addiction, fraud and consumer harm. The move builds on earlier steps: 28% GST on platforms, 30% tax on winnings, and blocking of over 1,400 illegal sites since 2022.
Implications:
Players: Real-money games become harder to access legally.
Operators: Offshore/illegal platforms lose payment rails; legitimate skill/e-sports providers get clarity.
Payments: Banks/payment apps must tighten controls; merchant categories will be blocked.
States vs Centre: Expect legal and political debates over jurisdiction.
Could this open more crypto payment opportunities?
Yes — cutting traditional rails may push some operators and gamers to explore crypto or stablecoin rails (peer-to-peer or on-chain settlements) as alternate payment routes. That said, crypto solutions would still face strict KYC/AML checks and likely regulatory scrutiny; any shift to crypto payments could spur new compliance rules or targeted crackdowns rather than a free pass.
Source & credit: Business Today (Karishma Asoodani), Aug 19, 2025.
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