India set to bring real-money gaming firms under anti-money laundering law
The Union government of India is close to finalising a decision that may bring online real-money gaming companies such as Dream11, Games24x7, and Winzo under anti-money laundering regulations.
Gaming firms may become reporting entities
The Ministry of Finance has proposed to designate online real-money gaming companies as “reporting entities” under the Prevention of Money Laundering Act (PMLA), 2002. This proposal is currently under inter-ministerial consultation and, if approved, would place these companies under stricter regulatory obligations, a local newspaper Indian Express reported.
The PMLA requires reporting entities to carry out enhanced know-your-customer (KYC) checks, monitor financial transactions, and report any suspicious activity to the Financial Intelligence Unit-India (FIU-IND). At present, banks, financial institutions, and businesses handling high-risk transactions fall under this category.
Compliance requirements will increase
Once classified as reporting entities, gaming companies will be required to:
- Maintain detailed records of all user transactions
- Store documents verifying customer identities and ownership structures
- Share transaction reports and client data with FIU-IND
- Comply with anti-money laundering and counter-terror financing rules
These requirements follow global guidelines laid down by the Financial Action Task Force (FATF), the international AML watchdog.
Government already tightening oversight
This move follows a 2023 decision to bring virtual digital assets (VDAs), including cryptocurrencies, under the same law. At the time, the Finance Ministry took similar action to boost transparency in the digital asset space.
It would also mark the second policy shift targeting the online gaming industry after the government implemented a 28 percent Goods and Services Tax (GST) on the full value of deposits made by users on gaming platforms in July 2023.
Online gaming sector sees rapid growth
According to a March 2025 report by FICCI and EY, India’s online gaming industry generated revenue of approximately $2.7 billion in 2024. Companies like Dream11 and Winzo earn their income by charging a percentage of player winnings.
More than 155 million Indians played real-money games such as fantasy sports, poker, and rummy in 2024, with an average of 110 million users logging in daily. This marked a 10 percent rise in user engagement compared to 2023.
As per data presented in Parliament, the Ministry of Electronics and Information Technology issued over 1,400 blocking orders against online gambling and betting websites between 2022 and February 2025.
In addition, the Directorate General of GST Intelligence (DGGI) has blocked more than 350 links of offshore gaming platforms that were found to be operating outside Indian laws.
