Mumbai, Aug. 20 -- Investors in real-money gaming startups are in wait-and-watch mode after the government unveiled a sweeping ban that could wipe out the billion-dollar industry.

The 'Promotion and Regulation of Online Gaming Bill 2025' bill was passed in the Lok Sabha on Wednesday by a voice vote amid protests by Opposition members. It will become law after it is cleared in the Rajya Sabha.

The bill treats fantasy games and online gambling alike, effectivelycriminalizing an industry that generated over $2 billion in revenue last year.

Bankers and investors Mint spoke with said the new law, which would affect leading gaming companies such as Dream11, Gameskraft, and Games24x7, runs counter to ensuring policy continuity and improving t...