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Home»Legal»India Passes Gaming Bill As Crypto Faces Strict Scrutiny
Legal

India Passes Gaming Bill As Crypto Faces Strict Scrutiny

NBTCBy NBTC24/08/2025No Comments3 Mins Read
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India’s ban on real money gaming in August 2025 is one of the clearest examples yet of how decisively the government is willing to act. The Online Gaming Bill, passed on August 20-21, shuts down any platform that involves deposits or stakes, which the law now calls “online money gaming.” An Online Gaming Authority is being set up to enforce it, and the penalties are sharp: up to three years in jail and fines of up to ₹1 crore.

Apps Shut Paid Features post Gaming Bill

Dream11, MPL, Gameskraft, Zupee, Probo, My11Circle, RummyCulture, and others all suspended their real money features within hours. Dream11 paused its pay-to-play contests and will disable paid features entirely once the bill gets presidential assent. MPL too has stopped all money-based offerings and promised refunds. Gameskraft froze “Add Cash” on its rummy apps. Zupee & Probo halted operations outright. My11Circle, RummyCulture, WinZO, Nazara, and Head Digital Works took similar steps, keeping free-to-play options open while withdrawals remain available.

Crypto Flagged in Cybercrime Report

At the same time, the Standing Committee’s cybercrime report painted crypto in an equally restrictive light. It mentioned crypto 15 times, almost entirely in connection with cyber threats. The report highlights cryptojacking, where hackers hijack devices to mine coins. It details scam centers and trafficking networks across Southeast Asia funded through crypto payments. Money laundering came up again and again in the report. It pointed out how peer-to-peer transfers and offshore platforms make it simple to shift money across borders almost instantly. Ransomware was another major concern. The report warned that it’s becoming a national security threat, with hospitals, schools, and businesses increasingly hit by crypto-based ransom demands. Finally, it links crypto to the underground “crime as a service” economy, where illicit financial services are built on top of it. After the Gaming Bill, this report is headed towards Crypto regulations.

Committee Pushes for Forensics and Stronger Enforcement

The Committee describing risks has pushed for stronger enforcement than a blanket ban. It wants advanced crypto-forensics labs in every region. The report suggests better>Big Crypto Law Expected after Gaming Bill

Looking ahead, it’s hard to avoid the conclusion that a comprehensive crypto regulation bill is on the way. It will almost certainly spell out what’s allowed and what’s banned. This will continue mandating licenses for exchanges, wallets, custodians, and OTC desks. We can expect tighter KYC and AML norms, stricter transaction monitoring, and full reporting of suspicious transactions to both FIU-IND and CERT-In. The report’s emphasis on digital forensics means new regional labs and more law enforcement training in blockchain analytics.

There is also a parallel track where the state supports “safe” digital innovation. Regulatory sandboxes for DeFi, CBDC experiments, and tokenised assets are slowly expanding. NITI Aayog is piloting blockchain in land records, supply chain, and trade finance.

Risks of Blanket Bans

The danger is repeating the pattern we just saw with real money gaming. A blanket ban, like in the Gaming Bill, might look decisive, but it risks driving activity into black markets where oversight is weaker. A more balanced approach, like the RBI’s tiered model for banking access, can give regulators the control they want while letting legitimate businesses operate within clear rules. Right now, India is at a turning point. The crackdown on real money gaming shows how far the state will go to assert control. Meanwhile, the cybercrime report sets the stage for strict crypto regulation centered on money laundering and illicit use.

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