/indianstartupnews/media/media_files/2025/09/09/indian-govt-may-lose-rs-12000-crore-in-annual-revenue-due-to-ban-on-real-money-gaming-2025-09-09-16-20-14.png)
Prime Minister Narendra Modi and Union Minister Ashwini Vaishnaw
The Indian government could lose between Rs 10,000 crore and Rs 12,000 crore in annual revenue following the ban on real-money gaming (RMG), Moneycontrol reported, citing a senior government official.
Revenue from the sector had surged after October 2023, when the 51st GST Council imposed a uniform 28% tax on all online games, both skill-based and chance-based, up from the earlier 18% levy on skill-based platforms.
“We have to forego the revenue because of the ban, but the GST cuts effective from September 22 will hopefully offset some of the loss,” the official told the publication. From that date, online money gaming will face a higher 40% GST, compared with the current 28%.
The official also said that the government was "clear that real money gaming can't be allowed" as many households are in huge debt.
Last month, the central government introduced and passed the Promotion and Regulation of Online Gaming Bill, 2025, which subsequently led to the shutdown of several real-money gaming platforms, including Dream11 and WinZo.
The new Online Gaming Bill is more than regulation, it is protection. Online money games have left children and youth vulnerable to exploitation and serious mental health risks. This step puts wellbeing first, ensuring our future generations grow with balance and dignity.…
— PreethaReddyOfficial (@preethareddy28) August 20, 2025
The bill was quickly enacted after Parliament passed it and received President Droupadi Murmu’s assent on August 22, 2025. It effectively prohibits all forms of real-money gaming while promoting esports and other online games.
Violators offering such games could face up to 2-3 years in prison or fines of as much as Rs 1 crore, while those advertising them could face two years of imprisonment and fines up to Rs 50 lakh. Banks and financial institutions enabling such transactions would also be penalised.
Players themselves would not face criminal liability, the government said, framing them as victims rather than offenders. Repeat offenders face harsher penalties: operators can be jailed for up to five years and fined up to Rs 2 crore, while advertisers can face three years’ imprisonment and fines up to Rs 1 crore.