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In the fast-paced world of digital entertainment, online gaming and betting have emerged as a double-edged sword in South Asia, blending economic promise with social perils.
As of August 2025, India’s parliament has enacted the Promotion and Regulation of Online Gaming Act, 2025, imposing a blanket ban on real-money gambling while fostering e-sports as a legitimate sector. This landmark legislation, passed amid concerns over addiction and financial fraud, contrasts sharply with Pakistan’s long-standing prohibitionist stance.
With the global online gaming market projected to reach $133 billion by 2025, these developments underscore the challenge of balancing innovation, revenue generation, and public welfare. It is thus important to understand how South Asia is dealing with e-gaming horrors, while doing their unqiue efforts.
India’s Promotion and Regulation of Online Gaming Act, 2025
India’s Promotion and Regulation of Online Gaming Act, 2025, represents a strategic pivot in the country’s digital policy landscape. Introduced in the Lok Sabha on August 20, 2025, the bill swiftly passed the Rajya Sabha the following day and received presidential assent on August 22, 2025. The legislation’s core objective is to curb the menace of online money games while promoting e-sports and social gaming as drivers of the creative economy.
Key provisions include the establishment of the National Online Gaming Commission, a central regulatory body empowered to license platforms, categorize games, and enforce compliance. Permissible games of skill, such as e-sports and fantasy sports, are encouraged through incentives, training academies, research centers, and dedicated platforms managed by the Ministry of Youth Affairs and Sports.
Core Aspects of the Act
In contrast, games of chance involving wagering or betting are outright banned, with violations attracting up to three years imprisonment and fines of Rs 1 crore for first-time offenders, escalating to five years and Rs 2 crore for repeat offenses. Platforms must implement consumer safeguards like age verification, self-exclusion, time and deposit limits, responsible gaming warnings in advertisements, and grievance redressal mechanisms.
The Act also creates an Online Gaming Appellate Tribunal for disputes, with appeals directed to the Supreme Court. Advertising violations targeting minors or promoting money games are penalized, and corporate officers can be held liable unless they prove due diligence. In addition, there have been cases where money extortionists have used such platforms to blackmail people into paying way more than they are owed. The government can block all such non-compliant platforms under the Information Technology Act, 2000, however, in reality, there needs to be a proper implementation.
Aftermath of the Online Gaming Act
Union Minister for Electronics and Information Technology Shri Ashwini Vaishnaw highlighted that 45 crore people are negatively affected by online money games, with losses exceeding Rs 20,000 crore, linking them to fraud, money laundering, tax evasion, and even terrorism financing.
The bill’s passage has led to immediate app shutdowns, including Dream11 discontinuing cash games, impacting sports sponsorships like the BCCI’s Rs 358 crore deal. Industry experts warn that the ban could erase $15 billion in startup value, wiping out unicorns and profitable companies, and push users to unregulated offshore platforms. Critics argue for regulation over prohibition to curb addiction while preserving economic benefits, estimating the sector’s value at $3.7 billion in 2025.
India’s attitude is proactive and dual-purpose: prohibit harmful money games to protect society while promoting skill-based e-sports as a legitimate sport, boosting the creative economy and positioning India as a digital hub. This contrasts with earlier lax regulations that allowed unchecked expansion, linked to financial fraud and social distress.
What is Pakistan’s Crackdown on Illegal Betting
Pakistan maintains a stringent prohibition on online gaming and betting, grounded in Islamic principles and the Prevention of Gambling Act, 1977, which criminalizes all forms of wagering with penalties including imprisonment and fines. The legal age for gambling is 18, but online gambling exists in a gray zone, with offshore platforms often used despite bans.
In 2025, the government escalated efforts, with the National Cyber Crime Investigation Agency declaring 46 betting apps illegal, including 1xBet and Bet365, for unlicensed activities. The Pakistan Telecommunication Authority blocks these platforms, and the Federal Investigation Agency conducts raids, arresting promoters and influencers.
Efforts of NCCIA
The National Cyber Crime Investigation Agency said that the banned apps were operating in violation of national laws, facilitating illegal betting, casino-style games, and unlicensed forex and binary trading. The agency warned that the platforms pose serious risks to users’ financial security and personal data. Among the banned gambling apps are 1xBet, Chicken Road, Aviator Games, Dafabet, 22Bet, Casumo, Rabona, 10Cric, Plinko, and Bet365, many of which are widely used across the region.
The list also includes unregulated forex and binary trading platforms, which could enable financial scams and illegal money transfers due to a lack of oversight. In addition, the agency flagged several apps that provide access to citizens’ personal data, including SIM card and mobile number information, raising concerns about privacy breaches, data misuse, and identity theft.
The NCCIA has asked the Pakistan Telecommunication Authority to immediately block access to the listed applications and urged the public to avoid using unverified apps that could endanger their data and finances.
Pakistani Youth and Increase in Gambling Apps Usage
Pakistan lacks a dedicated online gaming act, relying on outdated laws and reactive enforcement. The government has blocked over 150 illegal betting surrogates since 2023, emphasizing fraud and addiction risks. A 2025 study on online gambling promotion in Pakistan highlights policy gaps, noting 22 percent engagement despite bans.
The alarming impact of online gambling games on Pakistan’s youth warns of addiction among young people. Mobile gaming is booming, with 45 million gamers by 2025, but real-money games remain prohibited. Recent National Assembly changes to cyber laws could impact gaming, but focus remains on prohibition. Initiatives like the Cyber Muhafiz Hackathon promote cybersecurity awareness.
Pakistan’s attitude prioritizes moral and legal prohibition, viewing betting as corrupting, with limited promotion of e-sports. Underground markets persist, but the government emphasizes digital literacy to curb risks.
Comparing India and Pakistan: Prohibition vs. Balanced Regulation
India and Pakistan share concerns over betting’s harms but diverge in strategy. India’s Act bans money games but promotes skill-based e-sports, closing loopholes with a regulatory body and penalties. Pakistan’s blanket ban under 1977 laws lacks distinction, relying on site blocking and raids.
India’s multilingual campaigns and grievance mechanisms enhance inclusion, while Pakistan’s efforts are reactive. Both face offshore platforms, but India’s economic focus, including job creation and a $3.7 billion sector, contrasts Pakistan’s cultural caution. India’s ban risks underground shifts, erasing $15 billion startup value. Pakistan’s prohibition curbs formal growth, with 45 million gamers by 2025 untapped.
What Pakistan Can Learn from India
Pakistan can adopt India’s hybrid model to foster gaming while safeguarding society, blending prohibition with promotion to create a balanced ecosystem. First, enact a dedicated act distinguishing skill-based e-sports from betting, promoting the former with academies and incentives.
This could involve establishing a National Online Gaming Authority (NOGA) modeled after India’s NOGC, responsible for licensing platforms, categorizing games, and enforcing compliance. To combat illegal apps, integrate advanced AI-driven monitoring tools into the PTA’s blocking system, enabling real-time detection of unregulated betting sites through pattern recognition and user behavior analysis.
Establish a regulator like NOGA for licensing and protections, requiring platforms to implement robust KYC (Know Your Customer) protocols, including biometric verification linked to NADRA’s database. Implement consumer safeguards such as age verification, daily time and deposit limits, self-exclusion options, and mandatory responsible gaming warnings on all apps.
Launch multilingual awareness campaigns to educate youth, partnering with schools and influencers to run workshops on the risks of betting addiction and the benefits of skill-based gaming.
Encourage e-sports for job creation by offering tax breaks for gaming startups, funding e-sports tournaments, and integrating gaming curricula in vocational training programs, potentially generating billions in revenue and thousands of jobs in content creation, event management, and tech development. This could formalize Pakistan’s gaming scene, reducing underground risks by channeling youth energy into legitimate avenues.
To further strengthen defenses, foster international collaborations with bodies like INTERPOL and FATF to track offshore betting platforms and disrupt cross-border money flows. Introduce whistleblower incentives, rewarding citizens for reporting illegal apps through a dedicated FIA hotline or app, with protections against retaliation.
Enhance cybersecurity by mandating regular audits for domestic platforms and integrating blockchain for transparent transaction tracking. Finally, impose steeper penalties for violations, including asset seizures for repeat offenders, to deter organized crime syndicates.
Conclusion
In summary, India’s 2025 Act offers a blueprint for Pakistan to evolve from prohibition to regulated promotion, fostering e-sports while curbing betting harms. By adopting these measures, Pakistan can protect its youth, boost the economy, and reduce illegal activities.
For safety, users should stick to licensed platforms, enable two-factor authentication, avoid sharing personal details on unverified apps, report suspicious activity to the PTA or FIA, and educate themselves on responsible gaming. A vigilant approach ensures digital entertainment remains fun, not risky.
