Real Money Gaming Ban Set to Take Effect on October 1, Says IT Minister Vaishnaw

In less than two weeks, India’s fast-growing but embattled online real money gaming (RMG) industry will face a decisive moment. Union Minister of Electronics and Information Technology Ashwini Vaishnaw has confirmed that the government will formally notify the ban on online RMG on October 1, 2025, cementing one of the most contentious policy changes in India’s digital economy this year.

Speaking on Thursday during a pre-event for the AI Impact Summit, which India will host in February next year, Vaishnaw said the government had concluded extensive consultations and finalised the rules. The minister, however, left a small window open—hinting that if the industry collectively sought more time for transition, the government might consider a “more conservative approach.”

A Ban Already in Motion

While the formal notification has been pending since Parliament passed the law during the monsoon session, the ground reality for RMG operators has already shifted drastically. Most platforms have halted operations, processed refunds, and started winding down businesses.

Some companies have taken their battle to the courts, questioning the blanket ban. But industry insiders admit that the momentum has tilted decisively in the government’s favour. The fact that the Cabinet cleared the legislation and Parliament passed it within 72 hours signaled the urgency and intent behind the move.

“The rules will be promulgated with effect from 1st October,” Vaishnaw said. “Before that, we’ll have one more round of discussions with the industry. And in case they need some more time, we will definitely look at a more conservative approach.”

For players in the RMG space, however, the message is loud and clear—the government is firm on its stance, and the clock is ticking.

Behind the Decision: Wide Consultations

Vaishnaw revealed that the Ministry had engaged with multiple stakeholders before finalising the contours of the ban. This included banks and financial institutions, who play a critical role in ensuring that transactions linked to online gaming platforms are regulated effectively.

By bringing banks into the fold, the government is signaling that compliance will not just be about websites and apps shutting down, but also about tightening financial flows linked to prohibited gaming activities.

Parallel Development: Data Protection Rules in Final Stretch

Interestingly, Vaishnaw also used the occasion to announce another long-awaited policy move. The Digital Personal Data Protection (DPDP) Rules, 2025, will be notified no later than September 28, he said.

The DPDP Act was passed two years ago, but in the absence of detailed rules, it has remained in limbo. For India’s tech ecosystem—from startups and digital-first companies to news organisations—this development could prove to be as impactful as the gaming ban.

Journalists, in particular, have raised concerns over the Act’s lack of explicit protections for those who collect data as part of reporting. In recent months, media representatives have flagged these issues with the IT Ministry. To address such concerns, Vaishnaw assured that the government will publish FAQs after the notification of the Rules to clarify grey areas.

A Turning Point for India’s Digital Economy

The twin announcements—the end of online real money gaming as a legal business model and the activation of India’s long-awaited data protection framework—mark a significant regulatory shift for the country’s digital economy.

The RMG sector, once touted as one of the most promising areas for consumer internet growth, is now facing extinction in its current form. On the other hand, the finalisation of data protection rules is expected to set the tone for how India balances user rights, innovation, and governance in the digital era.

For now, October 1 will likely be remembered as a watershed date. It will either seal the fate of the RMG industry—or, if the government heeds last-minute appeals, offer it a temporary reprieve.

But if the current mood in New Delhi is any indication, the industry may already be living on borrowed time.