Top News

New Delhi: The proposed ban on real money gaming under the  ‘Promotion and Regulation of Online Gaming Bill 2025′, which was introduced in the Lok Sabha on Wednesday, could spell trouble for the cricket industry’s revenue. The Online Gaming bill could mark the end of “real money gaming platforms”, which have stakes in the sponsorship market of Indian sports, particularly cricket.

The bill aims to regulate one of the fastest-growing industries in the country and brings welcome news for the Esports fraternity in the country.

However, the multi-billion-dollar fantasy gaming industry could take a massive hit, and the companies that have spent millions of dollars in sponsorship of cricket might see a huge dip in their revenues.

In the process, it could also affect the sports sponsorship market, including individual players’ sponsorship and franchise-based domestic leagues in sports like kabaddi and football.

Under the Online Gaming Regulation Bill, a regulatory body will look after four diverse segments — Esports, educational gaming, social and casual gaming and real money gaming.

Of the four, there will be restrictions on online money games, according to the document, which PTI claims is in its possession.

As per “PROHIBITIONS” clause: “No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service.

“No bank, financial institution, or any other person facilitating financial transactions or authorisation of funds shall engage in, permit, aid, abet, induce or otherwise facilitate any transaction or authorisation of funds towards payment for any online money gaming service.” The “OFFENCES AND PENALTIES” clause clearly terms real money gaming as a criminal offence which could lead to jail and humongous fine for the service provider.

Clause 9. (1) reads “Any person who offers online money gaming service in contravention of section 5 shall be punished with imprisonment for a term which may extend to three years or with fine which may extend to one crore rupees or with both.

Clause 9. (2) reads: “Any person who makes or causes to make advertisement in any media, in contravention of section 6, shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to fifty lakh rupees or with both.

The government makes it clear that real money gaming is leading to a lot of social problems and it needs some kind of regulation.

“….the parallel proliferation of online money games accessible through mobile phones, computers and the internet, and offering monetary returns against user deposits has led to serious social, financial, psychological and public health harms, particularly among young individuals and economically disadvantaged groups; “…such games often use manipulative design features, addictive algorithms, bots and undisclosed agents, undermining fairness, transparency and user protection, while promoting compulsive behaviour leading to financial ruin.”

Impact of the Bill

Cricket has a huge influx of real money gaming, with Team India’s title sponsor being Dream 11. My11Circle, another fantasy gaming app, is the official fantasy sports partner of the Indian Premier League.

Dream11 brought the Indian team’s title rights for about USD 44 million (Rs 358 crore approx) while My11Circle brought IPL fantasy gaming rights for a fee of Rs 625 crore for five years (Rs 125 crore approx annually).

Not just the team and the league, the country’s top cricketers have massive personal endorsement deals with various real money gaming platforms.

Sports lawyer Vidushpat Singhania explained the consequences of the Bill.

“Cricket is huge in India, and there won’t be any dearth of sponsors for Indian cricket and its properties. However, personal sponsorship market can shrink because of this bill.

“Also fan engagement will be affected,” Singhania told PTI.

(With PTI Inputs)