Will India's new online gaming bill ban real money games? Industry bodies raise alarm

New Delhi: The Union government is preparing to introduce the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha on Wednesday, aiming to establish a national-level framework for the regulation of online gaming. The Bill will be moved by Union Electronics and IT Minister Ashwini Vaishnaw.

The proposed legislation intends to prohibit real money games, especially those operating across state borders or from foreign jurisdictions, while promoting responsible use of digital technologies and protecting vulnerable groups, including youth.

What are the key features of the bill?

According to the Lok Sabha agenda, the bill aims to promote and regulate sectors such as e-sports, educational gaming, and social games and prohibit the offering, operation, promotion, and participation in online money games via internet or digital platforms. It will also establish a central authority for policy coordination, strategic development, and regulatory oversight of the sector.

Protect public health, privacy, and maintain public order by addressing the adverse social, economic, and psychological impacts of such games.

Why is the gaming industry concerned?

India’s leading online gaming industry associations have expressed serious concern over reports that the bill could lead to a blanket ban on all real money games, including those based on skill.

In a joint representation, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS) said they represent almost the entire online skill-gaming sector in the country, which they described as a cornerstone of the Prime Minister's vision of a USD 1 trillion digital economy.

What did the gaming bodies say in their appeal?

In their letter, the federations warned that a blanket ban could be disastrous for the digital skill-gaming ecosystem, calling it a legitimate and job-creating industry. They stated, “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.”

They also highlighted the sector's contribution to India’s economy.

In their statement, the industry bodies shared that India’s online skill-gaming sector currently has an enterprise valuation of over ₹2 lakh crore and generates annual revenues of approximately ₹31,000 crore. The sector contributes more than ₹20,000 crore in direct and indirect taxes, while also supporting over two lakh direct and indirect jobs. According to the industry, online gamers in India increased from 36 crore in 2020 to over 50 crore in 2024, and the sector attracted more than ₹25,000 crore in foreign direct investment as of June 2022.

They warned that a complete ban would not only jeopardise this growing ecosystem but also harm the interests of users who enjoy skill-based games that are currently legal and constitutionally protected in various jurisdictions across the country. They argued that instead of imposing a sweeping ban, the government should consider a progressive regulatory framework that ensures user protection, responsible gaming, and legal clarity.

What are they requesting from the government?

The industry bodies have urged the Union government to reconsider any move toward prohibition and instead work with stakeholders to create a balanced, progressive regulatory environment. They have requested an urgent meeting with government representatives to present their concerns and share workable solutions that promote safe and responsible online gaming.

In their appeal, they stressed that India has a unique opportunity to lead globally in gaming technology, innovation, and digital entertainment. They believe that with appropriate oversight and government support, the country can build a model ecosystem that supports economic growth, protects consumers, and sets global benchmarks for regulation. The joint representation concluded with a strong plea for the government to involve the industry in the policy-making process and to avoid reactionary measures that could suffocate one of India’s most promising digital sectors.

What’s next for the bill?

The Promotion and Regulation of Online Gaming Bill, 2025 is expected to be formally introduced in Parliament on Wednesday. Once tabled, it may be referred to a parliamentary committee for review before being debated and potentially passed.