The annual revenue growth of payment gateway firms operating in India could drop by up to 15 per cent following the suspension of real-money gaming (RMG) operations, after the government introduced new laws barring e-sports companies from offering such games.
The development is expected to reduce digital transaction volumes in the country by at least Rs 30,000 crore this year.
Reports suggest that the sharpest impact will be felt by smaller, gaming-focused payment players, while larger gateways may experience only a partial dent due to their diversified portfolios.
"Nearly 80 per cent of the impacted transactions would have been processed via the Unified Payments Interface (UPI) in any other scenario," said a business executive familiar with the situation. "This directly affects UPI's monthly transaction volumes by about 2 per cent and its total value by about 0.5 per cent."
Data from the National Payments Corporation of India (NPCI) highlights the role of digital payments in gaming. In July alone, 35.1 crore payments, or 2.8 per cent of the platform's total volume, were made in the digital Goods &amp; Games category, totaling Rs 10,077 crore in transactions, or 1.38 per cent of UPI's monthly value.
It is anticipated that UPI will lose approximately 25 crore transactions each month, valued at around Rs 5,040 crore, due to the ban.
Major payment gateways with exposure to the RMG industry, including Razorpay, PayU, and Cashfree, are likely to face pressure on their earnings. "However, compared to niche companies that only serve the gaming industry, the fallout is probably going to be less severe because of their substantial presence in other industries," analysts said.
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, therefore, has wide implications for the entire digital payments ecosystem in addition to gaming companies.
The Promotion and Regulation of Online Gaming Bill, 2025, which imposes strict limits on money-based online gaming platforms in India, was approved by President Droupadi Murmu, a day after Parliament passed it.
Those providing such services face severe penalties under the new law, including fines of up to Rs 1 crore and imprisonment of up to three years. Promoting or advertising on such platforms can also result in fines of Rs 50 lakh and a two-year jail sentence. [Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed]

Real-Money Games Ban Hits Payment Gateways

RMG suspension may cut digital transaction volumes by Rs 30,000 crore this year

Real-Money Games Ban Hits Payment Gateways

RMG suspension may cut digital transaction volumes by Rs 30,000 crore this year

August 24, 2025 | 24:00 IST