The online gaming industry has voiced strong opposition to the government’s proposed legislation that aims to ban all real money games, including those categorised as skill-based. Industry representatives caution that such a move could devastate the sector, wiping out companies and leading to large-scale unemployment.
In a letter addressed to Home Minister Amit Shah, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS) appealed for urgent intervention, reported ANI.
They warned that the Bill, if enacted, would “destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India’s position as a digital innovator.”
A fast-growing industry at stake
The associations stressed that the measure would deal a “death knell” to a legitimate and rapidly growing segment of the economy. According to industry data, online skill gaming in India is valued at over Rs 2 lakh crores, generates Rs 31,000 crores in annual revenue, and contributes more than Rs 20,000 crores in taxes to the exchequer.
The sector has been recording steady expansion at a compound annual growth rate of 20 per cent and is projected to double in size by 2028. User numbers have also surged, climbing from 36 crores in 2020 to more than 50 crores in 2024. Foreign direct investment has been significant too, with inflows exceeding Rs 25,000 crores as of June 2022.
Industry leaders argue that the proposed ban would not only halt this growth trajectory but also dismantle an ecosystem that sustains thousands of entrepreneurs, engineers and content creators.
Fears of users shifting to illegal operators
The gaming bodies also raised concerns that shutting down licensed Indian platforms would push millions of users towards unregulated operators. These could include offshore gambling websites, illegal matka networks and underground betting rackets. Such entities function outside the ambit of consumer protection, taxation or oversight, and are often linked to fraud, exploitation and even national security threats.
In their communication, the federations wrote: “Sir, on behalf of the millions of young entrepreneurs, developers, and professionals working in India’s sunrise digital skill gaming sector, we write to you with the deepest respect and gravest concern regarding the news reports about the draft Bill that seeks to ban all real money games, including those based on skill.”
Call for regulation, not prohibition
The industry organisations emphasised that a blanket ban would stifle innovation and eliminate employment opportunities in a sector with immense potential. They urged policymakers to pursue a regulatory framework instead, suggesting that responsible oversight could ensure consumer safety while nurturing economic growth.
The federations highlighted that online gaming could become a pillar of Prime Minister Narendra Modi’s vision for a $1 trillion digital economy. They have also sought an immediate meeting with Amit Shah’s office to present constructive proposals for responsible gaming standards.
“With your guidance, India can set a global example by building a safe, transparent, and thriving digital gaming ecosystem,” the letter concluded.
The proposed Bill
The Promotion and Regulation of Online Gaming Bill, 2025, is expected to be introduced in Parliament by Electronics and Information Technology Minister Ashwini Vaishnaw. The draft legislation seeks to establish a national framework to oversee the online gaming industry. While the government intends to prohibit real money games across state and international boundaries, the Bill also proposes regulatory measures to bring the wider sector under a centralised system.
