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India Bans Online Gambling After 450 Million Citizens Lose $2.3 Billion

India Bans Online Gambling After 450 Million Citizens Lose $2.3 Billion

India’s parliament has officially passed a landmark law banning online gambling, in a move the government says is aimed at protecting citizens from financial ruin and addiction.

According to government data, around 450 million Indians — nearly one-third of the country’s population — collectively lose an estimated $2.3 billion every year on gambling apps.

Details of the New Law

The Promotion and Regulation of Online Gaming Bill, approved late Thursday by both houses of parliament, makes it a criminal offense to offer, promote, or finance online gambling platforms.

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Those found guilty will face up to five years in prison.

The ban specifically targets card games, poker, and fantasy sports apps, including India’s hugely popular fantasy cricket platforms.

A government statement described the bill as a step to reduce:

  • Gambling addiction

  • Financial hardship for families

  • Social problems caused by predatory gaming platforms

Modi Speaks on E-Sports & Digital Growth

Prime Minister Narendra Modi welcomed the legislation, saying it would protect society from the “harmful effects of online money games” while encouraging the growth of e-sports and safe online social games.

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The government clarified that e-sports and educational games are exempt from the ban, as part of efforts to expand India’s digital economy.

Concerns From Industry

India’s gaming industry is one of the world’s largest, and industry groups had earlier urged the government to regulate and tax online betting instead of imposing a total ban.

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They warned the decision could drive players toward illegal offshore platforms, which are harder to monitor.

However, lawmakers argued that the social costs — from financial losses to cases of fraud, money laundering, and even suicide linked to gambling — were too severe to ignore.

Government Position

Ashwini Vaishnaw, India’s Minister of Technology, explained that the law draws a clear line between:

  • Constructive digital recreation (e-sports, educational games, social games)

  • Exploitative money-based games (gambling and betting apps)

“This law promotes safe digital gaming while shutting down predatory platforms that exploit users with false promises of profit,” the government briefing said.

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