The Indian online gambling ban is barely weeks old, yet it’s already being tested in the courts. The sweeping law, passed in August 2025, outlaws all real-money games played online, whether they’re based on skill or chance. Supporters call it a bold move to protect citizens, while critics argue it tramples on rights, threatens livelihoods, and could push players into riskier underground markets.
A Fast-Moving Law
Few expected the legislation to move as quickly as it did, the lower house signed off on 20 August, the upper house gave approval the next day, and by 22 August the president had signed it into law. Overnight, India went from being one of the largest iGaming markets in Asia to a country where real-money play on the internet is illegal.
Penalties are tough. Operators that continue to offer games face fines and the risk of criminal charges. Players don’t face prosecution directly, but they’ve effectively lost access to legal, regulated options.
Why Companies Are Fighting Back
It didn’t take long for challenges to emerge. Operators have filed petitions in the Karnataka High Court, arguing that the law sweeps too broadly, treating games of skill the same way as games of chance. India’s own courts have historically recognised skill-based titles as legitimate, with operators saying this sudden reversal puts their businesses at risk.
Legal experts are also raising the issue of proportionality. Under India’s constitution, citizens have the right to carry on a profession. Banning all real-money games, they argue, may go further than necessary. Less restrictive options, such as licensing, advertising controls, or loss limits, could have addressed concerns without shutting down an entire sector.
Economic Shockwaves
The ban is already having dramatic consequences, with operators across iGaming and fantasy sports reporting plummeting revenue and signalling the need to layoff significant portions of their workforce.
Industry groups warn that the fallout could extend much further. Estimates suggest that more than 200,000 people work in roles linked to online real-money gaming, from software developers to marketing teams. All of them now face uncertainty.
The Black Market Question
One of the biggest fears is that players won’t simply walk away from online gaming. Instead, they’ll turn to offshore or underground sites. These operators are harder to regulate, less likely to offer protections like self-exclusion, and almost impossible for tax authorities to monitor. In other words, the demand doesn’t disappear, it just moves into riskier territory.
That outcome would undermine the government’s stated goals. Instead of safer play, critics argue, the ban could lead to more harm, less transparency, and greater exposure to fraud.
Are Alternatives Possible?
Not every region is taking the same approach. In Karnataka, for instance, lawmakers have floated the idea of creating a regulatory authority that would distinguish between chance and skill, license the latter, and penalise unlicensed operators. The proposal also includes programs to support players who develop gambling problems.
Observers say this is a more balanced path, one that keeps the industry under supervision rather than driving it into the shadows. It also preserves revenue streams that states rely on for public programs.
What Comes Next
The legal process will take time, but the stakes couldn’t be higher. If courts side with the challengers, parts of the Indian online gambling ban may be overturned or rewritten, opening the door to regulation rather than outright prohibition. If not, companies may shut down their India operations altogether, leaving a vacuum that illegal operators are quick to fill.
Either way, the debate is far from settled. The ban has triggered a national conversation about rights, regulation, and responsibility. And for now at least, everyone, from operators to players to lawmakers, is waiting to see how the courts will shape the future of gaming in India.
