Online Gaming Bill 2025: Why It May Spell Doom for the ₹2 Lakh Crore Industry

GLOBAL EVENTS

8/20/20251 min read

India’s ₹2 lakh crore online gaming sector is staring at uncertainty as the Centre prepares to roll out the Online Gaming Bill, 2025. Industry bodies caution that a blanket ban on real-money gaming could severely hit jobs, investments, and overall growth.

Online Gaming Bill 2025: Why India’s Booming Industry is on Edge

India’s ₹2 lakh crore online gaming sector is staring at a crisis as the Centre prepares to introduce the Promotion and Regulation of Online Gaming Bill, 2025. While the Bill aims to create a national framework for regulation, it also proposes a blanket ban on real-money games, sparking outrage from industry bodies.

Industry Pushback

The All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of India Fantasy Sports (FIFS) have written to Home Minister Amit Shah, warning that such a ban could be a “death knell” for the sector. They argue the industry generates ₹31,000 crore in annual revenue, ₹20,000 crore in taxes, supports 2 lakh+ jobs, and attracts massive FDI.

Congress leader Karti Chidambaram also slammed the Bill, calling it a knee-jerk move that risks pushing financial transactions offshore and even to the dark web.

A Growing Market at Risk

India’s player base has grown from 36 crore in 2020 to over 50 crore in 2024, with the sector growing at a 20% CAGR. Projections suggest it could double by 2028. But the proposed ban threatens to wipe out ₹20,000 crore in GST/TDS revenue and $6 billion in investments.

What the Bill Proposes

  • Establishes a central regulatory authority

  • Covers e-sports, social, and educational games

  • Prohibits money games spanning states or overseas platforms

  • Aims to protect youth from addiction, fraud, and financial risks

The Road Ahead

Gaming bodies are urging the government to opt for progressive regulation over prohibition, warning that India risks losing its chance to become a global gaming hub. They’ve requested urgent consultations with policymakers to find a balanced, responsible way forward.

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