India Bans Real-Money Gaming, Citing Addiction & Algorithmic Control
New Delhi – The Indian goverment has enacted a new law prohibiting all forms of online money games, a move recommended by psychiatrists concerned about the potential for addiction and financial ruin. The legislation, a first-of-its-kind legal framework for regulating gaming in India, aims to curb a rapidly growing industry while fostering the growth of esports and social gaming.
Dr. Vijayakumar,a psychiatrist who advised the government on the ban,explained the core issue isn’t skill versus chance,but rather the control gaming companies exert over players through algorithms. “There is really no skill involved in most real-money gaming platforms because the gaming companies control the algorithm. They can change the algorithm at any point to keep you addicted,” she stated.The ban addresses fears that vulnerable individuals could fall into “debt traps” due to the addictive nature of these games. Dr. Vijayakumar acknowledged the transition will be difficult for some, but emphasized, “But the fact is they won’t lose money. They won’t get into a debt trap.” She dismissed concerns that the ban would simply drive users to illegal, underground gambling operations, arguing that only a “small percentage of serious gamblers” possess the technical expertise to navigate the “dark web.”
The new Act differentiates between prohibited money games and legitimate activities. It specifically seeks to promote esports as a competitive sport and allows for online social games that charge subscription or access fees, provided they do not involve wagering.
When questioned about potential future regulations for skill-based games like battle royale titles, Dr.Vijayakumar indicated that time limits and age restrictions could be considered, but are not an immediate priority. “First, let this happen. Then we will have to come to how we can educate the people about restricting time spent on gaming as well as social media,” she said, citing research linking excessive screen time – over two hours – to anxiety and depression. she pointed to international precedents, including ChinaS restrictions limiting under-18s to one hour of online gaming on specified days, and Australia’s recent ban on social media access for those under 16.Industry leaders, however, argue for a more nuanced approach. Akshat Rathee, managing director of esports firm Nodwin Gaming, told The Indian Express that regulations should prioritize “education, awareness, and safeguards rather than overly restrictive rules that could stifle growth.” He advocated for global best practices like parental controls and digital literacy initiatives. Rathee emphasized the distinction between casual gaming and esports,describing the latter as “more structured,skill-based,and career-oriented for many players.”