In August 2025, India’s gaming industry faced a seismic shift as the Promotion and Regulation of Online Gaming Act (PROGA) was passed by the Lok Sabha, effectively banning real-money gaming in the country. This sudden legislative move has left developers and stakeholders in the gaming sector scrambling to regroup and redefine their strategies.
The legislation was introduced with the intention of regulating and protecting consumers within the online gaming ecosystem. However, its broad phrasing has resulted in an almost total prohibition on real-money games, catching developers off guard. The industry is now seized with a sense of urgency, seeking judicial clarity while simultaneously exploring new business models that comply with the law.
Ranjana Adhikari, from Shardul Amarchand Mangaldas & Co., observed that the new legal landscape has completely disrupted the sector. She remarked that although the law aims to regulate, in practice it acts as a stringent ban. “The sector is in limbo, awaiting guidance from the judiciary while also trying to find viable business strategies under these new conditions,” she explained.
The legal response from the gaming industry has been swift. Numerous petitions challenging the constitutionality of PROGA have been filed, and the Supreme Court is now tasked with evaluating these arguments. A bench led by Justices J.B. Pardiwala and K.V. Viswanathan has directed the government to provide a comprehensive response by November 26th. The court’s decision is eagerly awaited, as it will determine whether the sector can resume operations and under what conditions.
In parallel, another legal case is questioning the legitimacy of online betting platforms that may be masquerading as social or e-sports games. The outcome of this case could further define the boundaries for online gaming in India.
Faced with these challenges, many developers are already pivoting to new formats that align with the current legal framework. Social and casual games have seen a surge in interest, with developers leveraging in-app purchases and ad-supported models instead of betting. There is also a newfound focus on interactive media, where innovative formats such as micro-dramas and gamified stories are being developed to engage audiences.
A noteworthy trend is the integration of gaming mechanics into fintech and wealth-tech applications. These platforms use gamification to educate users about finance, investment, and digital literacy, turning compliance into a creative tool rather than a hindrance.
“The Indian gaming industry has always been resilient,” Adhikari noted with optimism. “What we’re witnessing is a recalibration of sorts. Companies aren’t just waiting for legal clarity; they’re proactively exploring new formats that comply with the law while keeping users engaged and investors interested. The smartest companies are integrating compliance into their design processes.”
The stakes are high, as the real-money gaming industry had been a major component of India’s digital economy. Prior to the enactment of PROGA, the sector supported over 200,000 jobs, bolstered more than 400 startups, and contributed USD 2.3 billion in taxes. It was instrumental in advancing government initiatives like Digital India and Make in India.
Despite the challenges, there is a palpable sense of optimism among industry insiders. Many believe that the current adversity will ultimately result in a more robust and innovative sector, better aligned with regulatory expectations. The transformation could lead to a more sustainable industry that continues to thrive under clear and stable regulations.
Adhikari emphasized that the future of the real-money gaming sector hinges on the Supreme Court’s upcoming decisions and the regulatory stance of the Online Gaming Authority. “The industry’s fate will largely depend on judicial outcomes and how permissible gaming offerings are regulated. But given the sector’s track record, I’m confident it will adapt and come out stronger.”
Developers in India have historically shown the ability to rebuild and innovate in the face of obstacles. The central question now is not about survival, but about the evolution of the gaming landscape in India. As the industry navigates through this transitional period, its capacity for reinvention remains its greatest asset.
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