The proposed Online Gaming Bill is creating quite an uproar in the gaming industry ahead of its tabling in the Parliament, which is likely to happen today. The All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) has written to Union Home Minister Amit Shah, asking for urgent intervention on the proposed Bill.
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. It cautioned that such a move would strike a “death knell” for a growing industry that provides jobs and creates opportunities.
A Times Of India report, citing 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. As draft copies of the Bill began circulating online, gaming executives expressed concern that they might have to shut down operations with no clear way to earn revenue if the law is passed.
The gaming body has stressed that instead of banning, the government should focus on progressive regulation, as a blanket ban could affect millions of players and harm the sector.
Warning from online gaming industry experts
Industry executives have warned that if the new law is implemented, many companies in the sector may be forced to shut down. One of the officials from a leading company, which operates mainly in the fantasy gaming space where real-money play is popular, told TOI that the government had often engaged with them on policy issues in the past, but this time there was no real consultation on a proposal that could severely damage the industry. He said that this lack of dialogue was especially concerning.
Experts also highlighted that fantasy gaming sponsorships play a major role in supporting domestic sports. Many state and city-level T20 leagues depend on this backing to survive. If the sector collapses, the talent pipeline for Indian cricket and other sports could weaken.
Companies stressed that big players in the Indian gaming industry, who are well-regulated and funded, including through foreign direct investment (FDI), do not engage in illegal practices such as betting, money laundering, terror financing, or gambling. Leading firms in this space include Dream11, Gameskraft, Games24x7, MPL, Nazara Technologies, Zupee, and WinZO.
Another founder of a top company told TOI that their revenues come mainly from skill-based real-money games. These revenues have allowed them to grow their valuations, create jobs for engineers and designers, attract global investment, and contribute significantly to government taxes, including GST.
Chances of some platforms shifting operations offshore
The industry sources have cautioned that if the law is too restrictive, some platforms could shift operations offshore, while unregulated apps with weak KYC and anti-money laundering checks might fill the gap, the report adde. This would reduce tax collections and create more risks for users.
They also argued that countries like the UK, US, and Australia regulate and license the sector with strict KYC, advertising rules, and enforcement instead of banning it outright. According to them, India should follow a similar model, the TOI report added. The 2023 framework, which introduced self-regulatory organisations and rules for permissible real-money games, could be strengthened rather than scrapped.
The experts have noted that the proposed Bill currently has gaps because there is an absence of a transition plan. If the Bill becomes a law, then proper measures should be there for winding down operations, refunding user balances, and protecting employees to avoid sudden disruption.