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In today’s newsletter: 

• Govt defends ban on online money games; clears Lok Sabha 
• Endgame for India’s real-money gaming industry? 
• Infosys announces 80% performance bonus payout

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The past 24 hours offered a quick lesson in how swiftly legislation can move!

• From bringing a bill from introduction to Lok Sabha approval in just minutes, with potentially far-reaching consequences for India’s real money gaming sector

Barely a day after the Union Cabinet approved it, the Promotion and Regulation of Online Gaming Bill, 2025, which proposes to ban all forms of online money games, was passed in Lok Sabha on August 20.

• The bill will next be introduced in the Rajya Sabha and, barring an upset, is soon set to become law

Its strict provisions, especially the outright ban on real-money gaming, have evoked strong responses from the industry and the Opposition. 

However, the government has been steadfast! 

• In an exclusive interaction with us, IT Secretary S Krishnan defended the bill, calling it a “balanced” attempt to bring clarity to the sector
  
  
• Union Minister Ashwini Vaishnaw also justified it, citing links between online money games and terror financing, money laundering, etc.
   
• Government sources told us that there was political consensus on the societal impact of such games

The bill, introduced by Vaishnaw, was passed via oral vote after 7 minutes of discussion amid protests by the Opposition in the Lok Sabha.

The bill, which was publicly made available only on August 20, bans the offering of any sort of online money games.

• It also prohibits celebrities from advertising/endorsing such games and bars banks from transacting with these companies

It also gives the central government sweeping powers to investigate any offences under the bill, and conduct warrantless searches and arrests.

The bill is next set to be introduced in the Rajya Sabha, where it is again expected to be passed. 

• After receiving presidential assent, it will turn into a law, effectively setting the sun permanently on the online gaming sector

However, the government insists that it’s a proverbial “sunrise” for the esports and online social games industry, which it says it will promote with schemes in the coming days!

The worst fears of real-money gaming (RMG)  companies are now coming true.

India's proposed law to ban RMG apps is set to deliver a massive setback to a $25-billion sector that employs over 2 lakh people directly and indirectly, industry stakeholders tell us. 

• The move will also push users toward illegal offshore betting websites, which will result in loss of tax revenues, and undermining user safety, they say

GST losses from offshore gambling operators is pegged at over $4 billion, according to industry estimates. 

• This is higher than the $3.5 billion in revenue generated by India's RMG industry

While the RMG sector has attracted $3 billion in FDI so far, global investors are likely to pull back if policy unpredictability continues, a top gaming executive said.

"Major investors in the gaming sector are worried their money could be lost. Funding in the sector can’t happen, and no entrepreneur will enter this space," the official said.

Also read: Online gaming bill puts Nazara’s Rs 805 crore PokerBaazi bet at risk; analysts see 30% downside, worst case

The proposed ban will also hit payment firms which facilitate half a billion transactions every month through their platforms.

• The sector contributed 10% of revenues for multiple payment aggregators (PA), although some have a greater exposure than others

Razorpay, Cashfree, PhonePe, Easebuzz and PayU are among the firms with a substantial exposure to the sector. 

• That said, the impact on UPI remains minimal since the sector contributes to around 0.5% in value every month and around 1.5% in volume on average

When the numbers shine, so do the paychecks.

Infosys has rolled out its performance-linked payouts for the first quarter of FY26, fixing the organisation-wide average at 80%, higher than the previous quarter’s 65%.

• The increase comes after the IT major reported strong earnings growth in July

Employees in Band 6 and below, comprising junior to mid-level staff, will be eligible for these payouts.

The company’s internal communication shows PL4 employees will see payouts ranging between 80-89%.

• While PL5 staff will get between 78-87%
  
  
• PL6 employees will receive 75-85%, depending on performance ratings

The payout structure ties directly to individual ratings, with top performers at each level seeing higher percentages than those in lower performance categories.

The higher payout shows Infosys’ improved quarterly performance.

• Net profit in Q1 rose 8.7% year-on-year to Rs 6,921 crore, while revenue grew 7.5% to Rs 42,279 crore

Both metrics beat Street expectations, giving the company room to reward employees with a more generous performance-linked payout.

Dig deeper

• Nvidia is reportedly developing a new AI chip for China based on its latest Blackwell architecture that will be more powerful than the H20 model it is currently allowed to sell there.

• A new Onelittleweb study reveals that just ten AI chatbots drive nearly 59% of global traffic, led by ChatGPT’s 48.36% share, with Google’s Gemini and xAI's Grok trailing far behind at 1.74% and 1.17%, respectively. 

Kerala is turning “work from beach” into reality. 

• The state’s first startup pod, a three-storey hub to brainstorm, build, and beach-hop, is coming up in Varkala

Jointly driven by Kerala Startup Mission and the tourism department, the project promises high-speed internet, meeting spaces, and stay options.

• Costing Rs 6 crore and opening in eight months, the pod aims to attract techies and entrepreneurs

 Find out more

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