India’s sweeping ban on real-money gaming is set to deliver a ₹30,000 crore annual blow to the country’s payment gateway industry, after President Droupadi Murmu approved the Promotion and Regulation of Online Gaming Bill, 2025. The legislation, which outlaws all money-based online games and associated financial transactions, has already forced leading gaming companies into shutdowns and is now rippling across the digital payments sector.
Payment firms are bracing for a slowdown of up to 15% in revenue growth, with the disruption hitting hardest on the Unified Payments Interface (UPI). According to National Payments Corporation of India data, the “Digital Goods: Games” category alone processed 35.1 crore payments worth ₹10,077 crore in July, making up nearly 3% of UPI’s total monthly volume. With the ban, UPI could lose around 25 crore transactions a month, valued at ₹5,040 crore—roughly 2% of its overall activity.
Industry executives say the impact will be uneven. Major gateways such as Razorpay, PayU, and Cashfree are expected to absorb losses better thanks to diversified portfolios, while gaming-focused processors face severe earnings pressure.
Gaming Platforms Begin Shutdowns
The sector’s leading platforms have already moved to comply. Dream11 suspended operations of its Dream Picks and Dream Play apps, while Mobile Premier League (MPL) stopped taking deposits and will only process withdrawals. Zupee has dropped all money-based games, continuing only with free-to-play titles. Gameskraft’s RummyCulture and Games24x7’s My11Circle have also pulled the plug on cash games.
“We respect the Government of India’s latest Online Gaming Bill. Probo has decided to discontinue its real-money gaming operations with immediate effect,” Gurugram-based Probo announced.
Government’s Rationale and Wider Impact
The government defends the ban as necessary to protect citizens, citing data that an estimated 450 million players collectively lost ₹20,000 crore to online gaming in recent years. IT Minister Ashwini Vaishnaw highlighted risks ranging from addiction and financial distress to money laundering and terror financing.
The ban affects a $25 billion industry that generates more than ₹31,000 crore annually and contributes about ₹20,000 crore in taxes. While the law allows e-sports and casual gaming to continue, industry insiders warn the move could push Indian players toward unregulated offshore platforms, undermining both safety and tax collection.
