Crypto Gaming in India 2025: Real-Money Games Changing the Market

India’s digital entertainment landscape is undergoing a massive transformation as real-money gaming and crypto-based innovations face unprecedented regulatory attention. 

With the introduction of the Online Gaming Bill in August 2025 and the government’s increasing scrutiny of crypto, India stands at a crossroads between digital innovation and strict financial oversight. 

The result is a rapidly evolving space that blends gaming, blockchain, and real-world earnings, but under tighter watch than ever before.

India’s Online Gaming Bill: A Decisive Shift

The Indian government’s Online Gaming Bill, passed on August 20–21, 2025, marks a major turning point for the gaming industry. The law defines any game involving deposits, entry fees, or prize money as “online money gaming.” 

Under this rule, platforms such as Dream11, MPL, and Zupee were forced to halt their paid features almost overnight. Penalties are steep—up to ₹1 crore in fines and three years in jail for violations.

To ensure enforcement, an Online Gaming Authority will be created to oversee compliance and investigate violations. 

Within hours of the bill’s passage, top real-money gaming apps either suspended operations or switched to free-to-play modes. 

ream11 disabled its pay-to-play contests, MPL issued refunds, and Gameskraft blocked its “Add Cash” options. 

Similarly, Zupee and Probo shut down their real-money offerings, while others like My11Circle and RummyCulture maintained free versions with limited withdrawals.

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Crypto Faces Growing Scrutiny

Parallel to the gaming ban, India’s Standing Committee on Cybercrime issued a detailed report addressing the risks of cryptocurrency. 

The report referenced crypto multiple times, primarily in the context of cyber threats, money laundering, and financial fraud. 

It highlighted issues such as cryptojacking, where hackers secretly use devices to mine cryptocurrency, and ransomware, which demands crypto payments for releasing hijacked data.

Authorities are also concerned about the use of peer-to-peer transactions and offshore exchanges that enable cross-border fund transfers without oversight. 

The report linked crypto activities to Southeast Asian scam networks and an underground “crime-as-a-service” ecosystem that thrives on anonymous transactions.

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Push for Stronger Enforcement and Crypto Forensics

Rather than recommending a blanket crypto ban, the committee advocated for advanced technological enforcement. 

It proposed the establishment of regional crypto-forensics labs capable of blockchain analytics, tracing illicit wallets, and monitoring suspicious activities. Cooperation with international regulators and better data-sharing agreements were also emphasized to strengthen India’s defense against digital financial crimes.

Currently, India imposes a 30% tax on profits from virtual digital assets (VDAs) and a 1% tax deducted at source (TDS) on trades. 

Under Section 115BBH of the Income Tax Act, exchanges, custodians, and wallets must register with the Financial Intelligence Unit (FIU-IND). 

SEBI monitors crypto that resembles securities, while the Reserve Bank of India (RBI) prepares a 2025 framework to regulate the broader digital asset ecosystem.

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Toward a Comprehensive Crypto Law

Following the strict Gaming Bill, experts predict a full-fledged crypto regulation bill could arrive soon. 

This legislation is expected to define clear operational boundaries for exchanges, custodians, and over-the-counter (OTC) trading platforms. It may introduce stronger Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, alongside mandatory transaction reporting to both FIU-IND and CERT-In.

At the same time, India is exploring innovation-friendly initiatives. 

Regulatory sandboxes for DeFi projects, CBDC (Central Bank Digital Currency) trials, and tokenized asset frameworks are being tested. 

NITI Aayog is also using blockchain to modernize land records, supply chains, and trade finance systems—signaling the government’s intent to balance innovation with regulation.

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Risks of Overregulation

However, experts warn that blanket bans—like the one seen in the gaming sector—could stifle innovation. Overly harsh measures may push legitimate platforms underground, creating unregulated black markets with weaker consumer protections. 

A more nuanced approach, such as the RBI’s tiered banking model, could help regulators maintain oversight without discouraging growth.

India’s stance in 2025 highlights both ambition and caution. The government aims to protect consumers from fraud and money laundering, yet must avoid undermining the potential of crypto gaming and blockchain innovation. 

The balance between regulation and opportunity will determine how India shapes its digital economy in the years ahead.

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FAQs

What is crypto gaming in India 2025?

Crypto gaming combines blockchain technology with play-to-earn models, allowing players to earn tokens or digital assets that can be traded for real money.

Why did India ban real-money gaming?

The 2025 Online Gaming Bill banned games involving monetary deposits to curb addiction, fraud, and illegal betting activities.

How is crypto linked to India’s gaming ban?

Both industries involve real-money transactions. The government views them through a financial compliance lens, focusing on anti-money laundering and consumer protection.

Will India regulate crypto in 2025?

Yes, a comprehensive crypto regulation bill is expected, introducing stronger KYC, AML, and transaction reporting requirements.

Can crypto gaming still grow in India?

Yes, growth is possible under a clear regulatory framework. DeFi sandboxes and blockchain trials show that India supports innovation with responsible oversight.