Online Gaming Ban Bill 2025: The proposed Online Gaming Bill is creating quite an uproar in the gaming industry, as the Cabinet has approved a bill to regulate online gaming, which is likely to be introduced in the Lok Sabha today, August 19.
In a letter jointly written by the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) to Union Home Minister Amit Shah, the industry bodies have sought urgent intervention on the proposed Bill.
Meanwhile, leading industry representatives have requested an urgent meeting with the government, warning that the Bill, if passed, “will cause serious harm to Indian users and citizens.” They further asserted that the online skill gaming industry could become one of the cornerstones of the Prime Minister’s vision for a $1 trillion digital economy.
The AIGF argued that if the Bill is passed in its present form, crores of genuine gamers may be pushed towards illegal gambling platforms and unregulated operators.
The letter further stated, “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 safeguards, consumer protections, or taxation.”
Online Gaming Bill: Could Impact 4 Lakh Companies, 2 Lakh Jobs
Industry experts warned that the move could threaten around 4 lakh companies, 2 lakh jobs, investments worth Rs 25,000 crore, and annual GST collections of Rs 20,000 crore. The Bill seeks to bring online gaming platforms under a legal framework and introduce penalties for gambling through digital apps. It also raises concerns about addiction, fraud, and inconsistencies across state laws, with provisions for penalties and punishment.
Online Skill Gaming: Rs 31,000 Crore in Revenue
According to gaming federations, online skill gaming is a sunrise sector with an enterprise valuation of over ₹2 lakh crore, revenue of over ₹31,000 crore, and annual direct and indirect taxes exceeding ₹20,000 crore. The sector is expected to grow at a CAGR of 20% and could double by 2028. The total number of Indian online gamers has risen from 36 crore in 2020 to over 50 crore in 2024.
The Ministry of Electronics and Information Technology could be designated as the central regulator for online gaming. The Bill also aims to put an end to unauthorised online betting.
Online Gaming Sector: 28% GST Imposed
The government has already been regulating the online gaming sector, imposing a 28% GST on online gaming activities since October 2023. (With IANS Input)
