Latest news with #GamingRegulation
Khaleej Times
a day ago
- Business
- Khaleej Times
'Addictive algorithms': India plans to ban online games played with money
India's government plans to ban online games played with money, a proposed bill showed on Tuesday, in what would be a heavy blow for an industry that has attracted billions of dollars of foreign investment. Citing psychological and financial harm it says can be caused by such games, the Promotion and Regulation of Online Gaming Bill 2025 says that no person "shall offer, aid, abet, induce or otherwise indulge or engage in" the offering of online money games and such services. The 13-page bill, which has not yet been made public but has been reviewed by Reuters, describes an online money game as one played by a user by depositing money in expectation of winning monetary and other enrichment. The Indian market for such gaming is set to be worth $3.6 billion by 2029, venture capital firm Lumikai says. Endorsements by top Indian cricketers and other marketing efforts have boosted appeal and investor interest of real money gaming apps such as the popular fantasy cricket games operated by startups Dream11 and Mobile Premier League. Dream11 commands a valuation of $8 billion while Mobile Premier League is valued at $2.5 billion, PitchBook data shows. The Indian government has long been concerned about how such games are addictive. India's IT ministry, which has drafted the bill, did not immediately respond to a request for comment. MPL and Dream11 declined to comment. In fantasy cricket games on Dream11, users create their teams by paying as little as 8 rupees (10 US cents), with a total prize pool of 1.2 million Indian rupees ($14,000). The apps become more popular during the Indian Premier League season, one of the world's most popular cricket tournaments. The bill states that anyone who offers such money games could face a jail term of up to three years and a fine. "Such games often use manipulative design features, addictive algorithms ... while promoting compulsive behaviour leading to financial ruin," the bill said.
CNA
a day ago
- Business
- CNA
India plans to ban online games played with money, citing addiction risks
NEW DELHI :India's government plans to ban online games played with money, a proposed bill showed on Tuesday, in what would be a heavy blow for an industry that has attracted billions of dollars of foreign investment. Citing psychological and financial harm it says can be caused by such games, the Promotion and Regulation of Online Gaming Bill 2025 says that no person "shall offer, aid, abet, induce or otherwise indulge or engage in" the offering of online money games and such services. The 13-page bill, which has not yet been made public but has been reviewed by Reuters, describes an online money game as one played by a user by depositing money in expectation of winning monetary and other enrichment. The Indian market for such gaming is set to be worth $3.6 billion by 2029, venture capital firm Lumikai says. Endorsements by top Indian cricketers and other marketing efforts have boosted appeal and investor interest of real money gaming apps such as the popular fantasy cricket games operated by startups Dream11 and Mobile Premier League. Dream11 commands a valuation of $8 billion while Mobile Premier League is valued at $2.5 billion, PitchBook data shows. The Indian government has long been concerned about how such games are addictive. India's IT ministry, which has drafted the bill, did not immediately respond to a request for comment. MPL and Dream11 declined to comment. In fantasy cricket games on Dream11, users create their teams by paying as little as 8 rupees (10 U.S. cents), with a total prize pool of 1.2 million Indian rupees ($14,000). The apps become more popular during the Indian Premier League season, one of the world's most popular cricket tournaments. The bill states that anyone who offers such money games could face a jail term of up to three years and a fine. "Such games often use manipulative design features, addictive algorithms ... while promoting compulsive behaviour leading to financial ruin," the bill said.
Yahoo
a day ago
- Business
- Yahoo
India plans to ban online games played with money, citing addiction risks
By Aftab Ahmed and Aditya Kalra NEW DELHI (Reuters) -India's government plans to ban online games played with money, a proposed bill showed on Tuesday, in what would be a heavy blow for an industry that has attracted billions of dollars of foreign investment. Citing psychological and financial harm it says can be caused by such games, the Promotion and Regulation of Online Gaming Bill 2025 says that no person "shall offer, aid, abet, induce or otherwise indulge or engage in" the offering of online money games and such services. The 13-page bill, which has not yet been made public but has been reviewed by Reuters, describes an online money game as one played by a user by depositing money in expectation of winning monetary and other enrichment. The Indian market for such gaming is set to be worth $3.6 billion by 2029, venture capital firm Lumikai says. Endorsements by top Indian cricketers and other marketing efforts have boosted appeal and investor interest of real money gaming apps such as the popular fantasy cricket games operated by startups Dream11 and Mobile Premier League. Dream11 commands a valuation of $8 billion while Mobile Premier League is valued at $2.5 billion, PitchBook data shows. The Indian government has long been concerned about how such games are addictive. India's IT ministry, which has drafted the bill, did not immediately respond to a request for comment. MPL and Dream11 declined to comment. In fantasy cricket games on Dream11, users create their teams by paying as little as 8 rupees (10 U.S. cents), with a total prize pool of 1.2 million Indian rupees ($14,000). The apps become more popular during the Indian Premier League season, one of the world's most popular cricket tournaments. The bill states that anyone who offers such money games could face a jail term of up to three years and a fine. "Such games often use manipulative design features, addictive algorithms ... while promoting compulsive behaviour leading to financial ruin," the bill said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
a day ago
- Business
- Reuters
India plans to ban online games played with money, citing addiction risks
NEW DELHI, Aug 19 (Reuters) - India's government plans to ban online games played with money, a proposed bill showed on Tuesday, in what would be a heavy blow for an industry that has attracted billions of dollars of foreign investment. Citing psychological and financial harm it says can be caused by such games, the Promotion and Regulation of Online Gaming Bill 2025 says that no person "shall offer, aid, abet, induce or otherwise indulge or engage in" the offering of online money games and such services. The 13-page bill, which has not yet been made public but has been reviewed by Reuters, describes an online money game as one played by a user by depositing money in expectation of winning monetary and other enrichment. The Indian market for such gaming is set to be worth $3.6 billion by 2029, venture capital firm Lumikai says. Endorsements by top Indian cricketers and other marketing efforts have boosted appeal and investor interest of real money gaming apps such as the popular fantasy cricket games operated by startups Dream11 and Mobile Premier League. Dream11 commands a valuation of $8 billion while Mobile Premier League is valued at $2.5 billion, PitchBook data shows. The Indian government has long been concerned about how such games are addictive. India's IT ministry, which has drafted the bill, did not immediately respond to a request for comment. MPL and Dream11 declined to comment. In fantasy cricket games on Dream11, users create their teams by paying as little as 8 rupees (10 U.S. cents), with a total prize pool of 1.2 million Indian rupees ($14,000). The apps become more popular during the Indian Premier League season, one of the world's most popular cricket tournaments. The bill states that anyone who offers such money games could face a jail term of up to three years and a fine. "Such games often use manipulative design features, addictive algorithms ... while promoting compulsive behaviour leading to financial ruin," the bill said.
TechCrunch
a day ago
- Business
- TechCrunch
India's government to propose blanket ban on real-money gaming
Real-money gaming companies are reeling as India moves to propose a blanket ban on their operations under a new legislation. The Indian government plans to prohibit real-money games — whether based on skill or chance — under its proposed online gaming regulation, per a draft seen by TechCrunch, which was also verified by three sources, including one consultant with the Indian IT ministry and two people working closely with the Indian government and real-money gaming companies. Proposed to be called The Promotion and Regulation of Online Gaming Act, 2025, the legislation would restrict online games involving real-money stakes and outlaw both their advertisements and financial transactions. 'No bank, financial institution, or any other person facilitating financial transactions or authorization of funds shall engage in, permit, aid, abet, induce, or otherwise facilitate any transaction or authorization of funds towards payment for any online money gaming service,' the draft said. Real-money gaming has been the biggest revenue driver for India's online gaming industry, which generated $3.8 billion in revenue in the financial year 2023–24 — a 23% increase year-over-year, per a recent report by gaming-focused VC firm Lumikai. Real-money gaming alone accounted for $2.4 billion of that total, the firm said. However, the sector has come under growing scrutiny amid public concerns over incidents of harm — including cases where individuals reportedly died by suicide after losing large sums of money in games. Industry stakeholders largely attribute these incidents to offshore betting and gambling apps, which continue to operate — and even expand — despite repeated claims by federal and state authorities of enforcement actions such as website blocks and account freezes. In 2023, the Indian government imposed a 28% tax on online gaming to curb real-money play — a move the industry called 'catastrophic' and 'unconstitutional.' Top investors, including Tiger Global and Kotak, urged Prime Minister Modi to reconsider, warning of $2.5 billion in write-offs and 1 million job losses. The tax stayed, though companies have challenged its retrospective application in the Supreme Court. However, it could rise to 40% under new rules, some recent reports suggested. The draft legislation states that real-money gaming companies could face imprisonment for up to three years, a fine of up to ₹10 million (approximately $115,000), or both. Similarly, celebrities promoting such games on any media platform could be liable for up to two years of imprisonment or a fine of ₹5 million (around $57,000). The bill also empowers the Indian government to establish a regulatory authority to oversee its implementation. 'Businesses will shut if the legislation comes into force,' the founder of a leading Indian real-money gaming startup told TechCrunch, requesting anonymity as the draft is not public yet. Investors are equally concerned about the proposed law, which is expected to be tabled in the Indian parliament soon for debate. 'All unicorns in this sector are going to be significantly impacted due to the move if it comes true,' an investor in Indian real-money gaming startups said, while not agreeing to be quoted on record as the proposal has yet to be released by the Indian government. Dream Sports, Games24x7, and WinZO are among India's top real-money gaming startups. Collectively, they have raised billions of dollars and generate significant revenue from millions of users. India has the highest number of real-money gaming startups globally, per Tracxn, followed by the U.S. and the UK. While many of these companies also offer non-monetized games, one founder told TechCrunch that real-money gaming accounts for over 85% of their total revenue. They did not comment on the record as the draft is not public, but agreed to share their thoughts anonymously. Likewise, some startups have explored going outside India to sustain their business amid regulatory challenges in the country. That has also not yet been fruitful for them, as they currently generate almost 100% of their revenues from India alone, the founder quoted above said. This is not the first time New Delhi has looked to regulate real-money gaming. In 2023, the Indian government amended the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, to curb 'user harm' associated with real-money games. It proposed the creation of self-regulatory bodies to approve legitimate games while restricting illegal betting and gambling. However, the self-regulation model faltered due to conflicts among industry stakeholders over enforcement and standards. Local reports on Tuesday suggested that India's Cabinet had cleared the proposed bill for its introduction in the lower house of parliament as early as Wednesday. However, the Indian government did not confirm the development. The Indian IT ministry did not respond to a request for comments.
