"The impact of this is staggering.”
A study warns that “exploitative” online money gaming in India is damaging users’ financial and mental health while creating serious social problems.
The research says the country’s recently introduced legislation banning these games is constitutionally defensible and necessary.
It highlights that the business models of platforms offering online money games are designed to exploit users through aggressive promotion and addictive features.
Some companies are reportedly spending up to 70% of their revenue on promotions aimed at creating addicted users, who then lose far more than the bonuses they receive.
The legislation, passed earlier in 2025, imposes a blanket ban on online money games, whether they rely on skill, chance, or a mix of both, marking a shift from the legal framework under the Public Gambling Act of 1867.
Previously, the 1867 Act outlawed common gaming houses but allowed exceptions for “games of mere skill”.
Courts repeatedly ruled that games like rummy and fantasy sports involved skill, meaning operators had to litigate each game individually, producing inconsistent outcomes across states.
However, the new law focuses on whether money is staked, treating all online money games as harmful, regardless of skill content.
The study was conducted by Gaurav Pathak, Assistant Professor at Jindal Global Law School; Mohit Yadav, co-founder of meta-database firm Altinfo; and Dr Anush Ganesh, Postdoctoral Research Fellow at the University of Exeter Law School.
Researchers carried out financial analyses of major gaming platforms and examined suicide statistics linked to gaming.
Pathak said: “Our analysis shows the business models of major Indian real money gaming companies are fundamentally predicated on user exploitation rather than skill-based competition.
“These platforms operate through what can only be characterised as predatory design, spending extraordinary sums to ‘hook’ users before extracting maximum value through addictive gameplay mechanics.
“The impact of this is staggering.”
Government estimates indicate 450 million people lose around Rs. 20,000 crores annually to online money gaming.
Many young players have been diagnosed with “Internet Gaming Disorder”, and there have been cases of gaming-related suicides across India.
Mr Yadav said: “The new Promotion and Regulation of Online Gaming Act, 2025 Act will not prohibit innovation in gaming itself; it only outlaws monetisation through stakes.”
Under the law, platforms can still operate as free-to-play, subscription-based, or advertising-driven businesses.
Researchers say the government aims to cut the link between gaming and gambling rather than suppress creativity.
Dr Ganesh added: “The ban is not an anti-business measure but as a welfare-driven recalibration of gaming markets away from predatory practices towards sustainable, non-exploitative business models.
“It provides a model for other democracies confronting similar challenges.”
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