India Bans Online Gambling as Sharplink Bets on Ethereum

India has just introduced the Online Gaming Bill, 2025 in the Lok Sabha, which is the lower house of its Parliament. As a result of which, a complete ban on online gambling in India has been put forward. At the very same time, companies like Sharplink are charging in the opposite direction and pushing Ethereum to build the next generation of decentralized, borderless online betting platforms.

Divided paths for the Future of Online Gambling in India

The Indian bill is sweeping. It aims to shut down all forms of online money games, regardless of whether they’re based on skill or chance. That means everything from fantasy sports and online rummy to digital lotteries will be off-limits. The bill does not just pick on operators, but advertisers, financial platforms, and payment gateways involved in facilitating these games could face hefty penalties. The punishment includes up to three years in prison and fines amounting to ₹1 crore. Repeat offenders will face even more serious consequences.

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Interestingly, players themselves would not be penalized, which is a notable decision. But the bill suggests the law is more about cutting off supply than punishing demand. According to the government, the reasons behind this crackdown include health risks, financial ruin, fraud, and even concerns around terror financing. Online gambling, they argue, has become a high-stakes trap, preying on users with the promise of easy money while often leaving families in distress.

But while India takes a hardline approach, global operators are going in the opposite direction. Many are pivoting to blockchain, which is a trend put forth by Sharplink, a US -based betting company that’s now integrating Ethereum into its ecosystem. In a recent tweet, Sharplink confirmed its commitment to blockchain-powered betting, citing improved transparency, innovation, and global accessibility.

Sharplink’s bet for Ethereum is because decentralized betting platforms promise global reach, instant payments, no middlemen, and fewer regulatory choke points. For companies operating in jurisdictions with tight gambling laws, these systems offer a kind of technological escape route, which is a way to keep operating even as regulations tighten.

Amid these trends, it is worth mentioning that India can enforce bans within its borders. But the catch is that users who shift to blockchain-based betting platforms may not recognize national limits. As gambling increasingly moves into the Web3 world, enforcement could become a consistent issue.

It also presents a challenge for regulators worldwide. India’s approach might inspire similar laws in countries struggling with the social costs of online betting. Or it might simply push more users and platforms toward crypto-native ecosystems, where enforcement becomes murky at best.

Back at home, India is still encouraging parts of the digital gaming world.

Notably, E-sports and skill-based social games currently remain untouched. Moreover,  government plans are in motion to build infrastructure, training centers, and policy frameworks to help them grow responsibly. India’s idea is clear i.e., support what’s constructive, ban what’s predatory.

For players, some may gravitate toward regulated e-sports or educational games. On the other hand, others may start exploring Ethereum betting platforms and other decentralized options.

However, note that several nations have been ramping up efforts for global gambling regulations in order to curb the online betting industry. For instance, Indonesia is preparing to introduce new rules targeting the use of Virtual Private Networks (VPNs), to crack down on the broader access to illegal online gambling. The aim of this move is to restrict tools that allow Indonesians to bypass government firewalls and access banned content. Indonesia currently ranks as the third-highest user of VPN services worldwide, behind only the United Arab Emirates and India.