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The Promotion and Regulation of Online Gaming Bill, 2025, introduced in the Lok Sabha on August 20 after Union Cabinet approval
Online Gaming Industry
A potential ban on India’s real-money gaming (RMG) industry, proposed in the government’s new online gaming bill, could deal a severe blow to a $25-billion sector that directly and indirectly employs over two lakh people, industry stakeholders told Moneycontrol.
They cautioned that such a move would likely push users toward illegal offshore betting sites, matka operators, and fly-by-night platforms—undermining tax collections, user safety, and digital sovereignty while strengthening unregulated players.
Industry estimates peg annual GST losses from offshore gambling operators at more than $4 billion, surpassing the $3.5 billion revenue generated by India’s RMG firms. The domestic sector currently contributes over Rs 25,000 crore in taxes each year. Prominent players include Dream11, Games24x7, Nazara Technologies (PokerBaazi), Gameskraft, and Mobile Premier League (MPL).
The Promotion and Regulation of Online Gaming Bill, 2025, introduced in the Lok Sabha on August 20 after Union Cabinet approval, explicitly prohibits offering, aiding, or promoting money games—defined as online games, whether of skill or chance, played with monetary stakes. The bill also bans direct or indirect advertising of such platforms.
In response, industry bodies—the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS)—have written to Home Minister Amit Shah seeking intervention and the opportunity to propose “responsible gaming” solutions that protect users without stifling the industry.
Several executives flagged the absence of public consultation on the current draft. In contrast, a 2023 consultation by the Ministry of Electronics and IT had led to amendments allowing self-regulatory organisations (SROs) to vet permissible RMGs, though that framework was later dropped.
Legal experts have also raised constitutional concerns. Gaming lawyer Jay Sayta argued that the bill’s blanket ban is “manifestly arbitrary” and fails to distinguish between games of skill and chance, despite judicial precedent protecting skill gaming under Article 19(1)(g). Multiple High Courts, he noted, have struck down such prohibitions as violating Articles 14 and 19(1)(a).
The sector, which accounts for the bulk of India’s gaming revenues, is projected to touch $9.2 billion by FY29, growing at a 20% CAGR. Unlike many digital businesses, several RMG firms are profitable—Gameskraft earned Rs 947 crore profit in FY24, Dream11 posted Rs 188 crore in FY23, WinZO reported a 151% jump in profit to Rs 315 crore, while Zupee turned profitable with Rs 146 crore.
This growth came despite higher taxation under the 28% GST regime introduced in October 2023, with reports suggesting the rate may be raised to 40%. So far, the industry has drawn $3 billion in FDI, but executives warn investors could exit amid policy uncertainty, stalling IPOs and funding inflows.
Sayta urged the Centre to await the Supreme Court’s verdict in the Gameskraft case, where the apex court has reserved judgment on whether online skill games for stakes amount to gambling and whether the subject falls under state or central jurisdiction. The case involves GST notices worth Rs 2.5 lakh crore against RMG companies.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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