Online Gaming Bill 2025: Industry warns of ₹2 lakh crore wipeout, urges Amit Shah’s intervention

As the government prepared to introduce a bill banning all online money games on Wednesday, industry bodies urged Union Home Minister Amit Shah to intervene against the ban, warning that it would impact over 2 lakh people in India who are directly or indirectly involved in the $25-billion sector.

The Bill, called Promotion and Regulation of Online Gaming Bill 2025, was later passed in the Lok Sabha, and the lower house was adjourned till tomorrow.

In a joint letter, gaming bodies have warned that such a blanket prohibition, with a ban on all real-money games (including those based on skill), would be a ‘death knell’ for the industry, destroying jobs and pushing crores of users towards illegal offshore betting and gambling platforms.

The Bill proposes the establishment of an authority to regulate the online gaming sector. The aim is to categorise different types of games and ensure compliance. The categorisation would be between e-sports, online social or educational games, and online money games.

As per the bill, e-sports, online social and/or educational games will be recognised and promoted, while online money games will be banned completely.

Major players in the gaming industry include Dream11, Games24x7, Nazara Technologies (Pokerbaazi), Gameskraft, and Mobile Premier League (MPL).

All India Gaming Federation (AIGF), the E-Gaming Federation (EGF) and the Federation of Indian Fantasy Sports (FIFS) wrote a joint letter on August 19 stating that the online skill gaming industry is a ‘sunrise sector’ with an enterprise valuation of over ₹2 lakh crore, and its annual revenue exceeds ₹31,000 crore.

The letter was signed by Roland Landers, Chief Executive Officer of AIGF; Joy Bhattacharjya, Director General of FIFS; and Anuraag Saxena, Chief Executive Officer of EGF.

As per a Moneycontrol report citing industry executives, there was no public consultation on the bill. However, the Ministry of Electronics and Information Technology (MeitY) held a public consultation on gaming-related amendments to the IT Act, 2021, in January 2023, which involved stakeholders such as gaming companies, industry bodies, players and lawyers.

In April 2023, the ministry notified the amendments, allowing self-regulatory organisations (SROs) to decide if a real-money game could be allowed in India. Later, it said that the SRO plan was scrapped.

Gaming industry in India

The gaming industry contributes more than ₹20,000 crore in taxes, both direct and indirect, every year and is forecasted to grow at a compound annual growth rate (CAGR) of 20%, doubling by 2028.

"Such a blanket prohibition would strike a death knell for this legitimate, job-creating industry, and would cause serious harm to Indian users and citizens. This Bill, if passed, will cause serious harm to Indian users and citizens. By shutting down regulated and responsible Indian platforms, it will drive crores of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without any safeguards, consumer protections, or taxation,” the industry bodies said in the letter.

In India, online gamers have been growing consistently, rising to 50 crore in 2024, from 36 crore in 2020. The industry attracted Foreign Direct Investment (FDI) of over ₹25,000 crore (until June 2022), and currently supports over 2 lakh direct and indirect jobs.

The gaming federations are saying that a ban would discourage global investment and deter investor sentiment, which can result in over 400 companies shutting down and weakening India’s position as a digital innovator.

The Bill risks exposing people to fraud, exploitation and practises, as many might end up with illegal offshore operators after the ban, the letter warned.

“Our sector represents not just entertainment, but the creation of an indigenous, future-ready industry at the intersection of emerging technology, creativity, and entrepreneurship. Today, thousands of startups, young engineers, and content creators rely on this ecosystem.

“The only beneficiary of this bill will be the illegal offshore gambling operators. If legitimate Indian businesses are shut down, unregulated actors will fill the vacuum. This will erode state and national tax revenues while leaving Indian users exposed to unregulated platforms,” it stated.

The gaming industry is rooting for progressive regulation and is against prohibition. The bodies have requested a meeting with the Home Minister to keep their case and discuss alternatives that would result in responsible gaming while protecting users and the industry.