New Delhi: The suspension of real-money gaming (RMG) operations in India, following the government’s new laws barring e-sports companies from offering such games, is expected to significantly impact the digital payments ecosystem. Payment gateway firms operating in the country may see their annual revenue growth decline by up to 15 per cent, with transaction volumes potentially shrinking by at least Rs 30,000 crore this year.
Industry sources indicate that smaller, gaming-focused payment players will face the sharpest impact, while larger gateways may experience only partial losses due to their diversified portfolios. Around 80 per cent of the affected transactions would normally be processed via the Unified Payments Interface (UPI). Experts estimate that the ban could reduce UPI’s monthly transaction count by about 25 crore, valued at approximately Rs 5,040 crore, representing roughly 2 per cent of its volume and 0.5 per cent of its total value.
Data from the National Payments Corporation of India (NPCI) highlights the scale of gaming-related digital payments. In July alone, 35.1 crore transactions in the digital goods and games category worth Rs 10,077 crore accounted for 2.8 per cent of UPI’s total volume and 1.38 per cent of its monthly value.
Major payment gateways exposed to the RMG industry, including Razorpay, PayU, and Cashfree, are likely to see earnings pressure. Niche players serving only the gaming sector could face more severe financial impacts, while larger firms may be cushioned by their substantial presence in other industries.
India’s online real-money gaming sector, valued at an estimated $25 billion, generates over Rs 31,000 crore annually and contributes nearly Rs 20,000 crore in taxes. The regulatory crackdown thus has wide-ranging implications, affecting not only gaming companies but the broader digital payments ecosystem.
The measures come under the Promotion and Regulation of Online Gaming Bill, 2025, which was approved by President Droupadi Murmu a day after Parliament passed it. Platforms offering money-based online gaming now face stringent penalties, including fines up to Rs 1 crore and imprisonment of up to three years. Promoting or advertising on such platforms can result in fines of Rs 50 lakh and a two-year jail sentence.
With IANS inputs