Online gaming ban will fuel black markets, aid foreign firms: PRAHAR

New Delhi, August 20, 2025: Civil society group PRAHAR (Public Response Against Helplessness and Action for Addressal) has sharply criticised the government’s recently passed Promotion and Regulation of Online Gaming Bill 2025, warning that the proposed blanket prohibition on real-money gaming will backfire, fuel black markets, and undermine Indian entrepreneurship.

In a statement, Abhay Raj Mishra, President and National Convenor of PRAHAR, said, “Government needs to reconsider and take a more calibrated stance, as prohibition has never worked. This bill will bring back the satta market with a vengeance. Blanket bans tend to drive users to unregulated platforms rather than protecting them. Instead of reducing harm, prohibitions create black markets that are harder to regulate and far riskier for users.”

Mishra pointed to PRAHAR’s recent survey of 2,500 gamers in Telangana, conducted in July 2025, to illustrate the ineffectiveness of outright bans. The study found that despite an eight-year ban on real-money gaming in the state, users continued to access platforms through VPNs, side-loaded apps, Telegram groups and payment workarounds. Over 94% of respondents said they preferred regulated, legal options over the underground channels they currently use.

PRAHAR also warned that the bill could stifle Indian innovation while inadvertently boosting foreign players. “The second big concern is that this bill is anti–Indian entrepreneurship. It unilaterally promotes foreign gaming companies. The e-sports and casual gaming sectors that the bill promotes are dominated by international giants, largely Chinese and US gaming companies. This is a U-turn, as at one point in time, India had banned PUBG. Now the same players will have parliamentary legitimacy to operate freely in India, with potential compromise of the sovereignty and integrity of the nation,” Mishra said.

He added that India’s only notable success stories so far have come from skill-based money gaming companies, and a more balanced, calibrated regulatory framework is necessary to safeguard both consumers and domestic businesses.

With the Lok Sabha having passed the bill, the debate now shifts to the Rajya Sabha and potential refinements before it becomes law.