It is true that Dream11 will be permitted in India in the year 2025 but only for free-to-play contests; all cash fantasy competitions will be totally off-limits in the meantime due to the new law passed by the central government. The Promotion and Regulation of Online Gaming Act, 2025 has banned the use of money in online gaming throughout the entire country, thus, putting to an end the earlier “game of skill” exemption which many fantasy apps like Dream11 were taking advantage of. The platforms will still be able to operate free contests, e-sports style formats, and give non-monetary rewards, however, they will not be allowed to have any deposits, entry fees, or cash prizes for the users in India.
What changed in 2025
The prohibition of real-money online games has now become a national law that includes fantasy sports, rummy, poker, and similar games regardless of the skill or luck involved.
The authorities will have more power to block and take down sites; offering or advertising paid games to Indian users may result in considerable fines and/or imprisonment as punishment.
The primary guidance for the transition advises users to take out any remaining balance in their wallets; the platforms have been switching to free modes or suspending paid games for Indian users.
How this interacts with taxes and IT rules
An interaction between the tax and IT rules has been devised How the 28% GST on online money gaming (applicable from Oct 1, 2023) which is charged on the total amount of deposits made is imposed; the ongoing Supreme Court litigation regarding past periods remains relevant for legacy liabilities but does not change the situation for the 2025 ban for end users.
The IT Rules for online gaming (2023) imposed the establishment of self-regulatory bodies and due diligence norms; the 2025 Act supersedes for money games by imposing a blanket prohibition nationwide.
Bottom line
Legal: Only free contests; no deposits, entry fees, or cash prizes for Indian users.
Practical tip: Should any app continue to run paid contests in India, stay away from it and report through grievance channels; fines will be imposed on the operators and the advertisers also.
