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Why the old "real-money gaming" model is no longer viable
With the enactment of the Online Gaming Act, 2025, any online game with money involved (i.e., "entry fees/deposits + the possibility of winning money or financial reward") has been prohibited in the entire country.Key changes:
The Act bans the offering, facilitation, or advertising of any "online money gaming service", whether the service is based on chance or skill. That implies that the platforms for daily fantasy sports, poker, rummy, online lotteries, betting, or any cash-prize games are considered illegal.
It is prohibited to carry out financial transactions for such games: banks and payment intermediaries are not allowed to process money-gaming related deposits and withdrawals.
It is also restricted to advertise or promote such games, e.g., through social media, influencers, or marketing agencies.
Violations are classed as serious and therefore is subject to heavy penalties: operators could be sentenced to up to 3 years of imprisonment and/or charged a fine of up to ₹1 crore. Repeated offenses may result in jail time of up to 5 years and fines of up to ₹2 crore. In brief: the "old model" of real-money online gambling or betting is no longer legally allowed in India. What you can legally build today: E-sports, social, casual & educational gaming
The Act, while forbidding real-money games, is an implicit endorsement of three categories of online games:
E-sports: Competitive multiplayer games played on digital/electronic platforms. The Act provides for the registration, regulation, and official recognition of e-sports under national sports frameworks.
Social / casual games: Free-to-play games that do not involve bets, financial stakes, or cash-prize winnings. It covers mobile games, casual puzzle/arcade games, simulation games, etc.
Educational / skill-development games: Games for learning, mental training, skill building, and the like - without cash winnings - are also included in the new legal framework.So, a legal online gaming business in India has to use one of these allowed formats and stay away from any real-money / cash-prize / betting or wagering mechanism.
Step-by-Step: How to Build a Legal Online Gaming Business Now
1. Choose a Permitted Format
Figure out if you are going to build a:
E-sports platform (competitions, games, tournaments, multiplayer)
A free-to-play mobile/desktop game (casual, social)
An educational or skill-development game (learning, quizzes, mental/mind games)
Stay away from any money wager model, entry fees for prize money, or cash rewards for gameplay.
2. Plan Monetization — Legally & Ethically
As cash-prize games are not allowed, monetization has to be done through legal alternatives. Some of the models are:
1) Subscriptions or access fees for premium content — only if no "prize money/bet-return" is involved
2) Ad-based revenue (ads, sponsorships) — however, it should be in line with advertising standards (no "betting/gambling" style promotions)
3) Tournament entry fees — only if the prizes are non-monetary (or not structured as cash-winnings) and are in compliance with the regulations
3. Register / Comply with the Regulatory Authority
The Act foresees a regulator or authority at the national level (generally known as the National Online Gaming Commission, NOGC) which will be the body responsible for classifying, registering, and supervising games that are allowed.Once NOGC is up and running, turn in your game for classification/registration as e-sports / social / educational game.
Keep up with the rules in a transparent way — no secretly placing wagers, no cash-prize schemes, no unapproved payment flows.Make sure you follow the directions for data protection, age verification (minors, in particular, must not be allowed), and other regulatory guidelines....
4. Develop & Launch the Game/App with Focus on Quality, UX & Compliance
Since you are not allowed to lure users with "real-money promise," your main target should be:
- Top-notch gameplay, attractive design, user-friendly UI/UX
- Multiplayer / community features (for e-sports / social games) to create engagement and retention
- Correct backend & data security, user-identification, privacy adherence, safe-gaming features
- A transparent in-app purchase or ad system (clearly inform the users about the cosmetic-only purchases; do not make any misleading claims)
5.Marketing & Growth — But With Care
You may advertise your product - but you are not allowed to promote it as a "cash-prize" or "win money" platform."
Market your game through the following features: fun, skill-based, competitive, social, or educational — not as a gambling or earning opportunity.
Work together with authentic gaming influencers but be very clear that there are no hints of wagering or real-money rewards.
6. Monitor Legal & Regulatory Updates — Stay Compliant
The situation is quite different from before — the NOGC, rulebooks, classification guidelines, registration procedures might change soon. Keep up with:
- Government/regulator notices or draft rules
- Adjustments in monetization, in-app purchase rules, ad-policy changes
- Changes in age-verification, data-policy, responsible gaming policies
Reasons Why This Strategy is the Right One — Both Legally and Businesswise
You are doing things the right way by staying in the legal framework and not exposing yourself to the serious criminal and financial risks that come with real-money gaming (jail time, fines, blocking, seizure). Moreover, the new rules & regulations are opening the door for e-sports and social/educational gaming to thrive — this may hint government support, formal recognition, and even infrastructure or subsidies. Free-to-play / social / e-sports games are usually more attractive to a larger user pool, e.g., minors (with parental consent), casual gamers — thus, greater reach and better long-term viability.
In-app purchases or ads for monetization — if carried out in the right way — may serve as a reliable and scalable model.
Conclusion
Under the new legal regime set by the Online Gaming Act, 2025, the period of real-money gaming platforms — fantasy sports, poker, rummy, cash-prize games — has come to an end in India. Nonetheless, this is not the end of online gaming. Rather, it is a turning point: the shift goes from betting-based models to skill-based, entertainment-driven, social and e-sports-based games.If you really want to start a gaming business today — then do it right. Concentrate on fun, community, competition, creativity, and compliance. Offer the users reasons other than money to play. Create immersive games; engage communities; provide them with value. In doing so, you are creating something that is legal, sustainable, and future-proof.
