Political Consensus Emerging On Real-Money Gaming Ban Over Social Impact: Govt Sources
The Indian government is firm on enforcing a blanket ban on real-money gaming, with rare cross-party consensus emerging over mounting concerns about its societal impact, officials told Moneycontrol.
Officials told the new outlet that several members of parliamentary committees have flagged that state-level bans have been ineffective in addressing the distress caused by these games in households across the country.
'There is a political depth of feeling across the aisle," one government official involved in drafting the bill said. 'The political class is getting its reading from the ground, and they feel strongly about the societal harm and debt spiral."
While the sector employs thousands, the number of Indians playing real-money games has crossed 450 million, raising concerns about debt traps. 'There is a lot of money sloshing around, much of it targeting vulnerable groups," another official told Moneycontrol, adding that such investments were 'not productive FDI."
The government clarified that e-sports and social games would not be impacted, with officials noting these segments continue to be viewed positively for their contribution to India's software and digital entertainment industries. 'We are not throwing the baby out with the bathwater," a source told Moneycontrol.
Officials also admitted that recognising the industry under the April 2023 IT rules was a 'mistake" as the self-regulatory framework failed to take off. No self-regulatory organisation (SRO) has been formally recognised since, they pointed out.
These remarks come ahead of the Promotion and Regulation of Online Gaming Bill, 2025, scheduled to be tabled in the Lok Sabha on August 20 after receiving Cabinet approval. The bill seeks to prohibit offering, aiding, or advertising online money games — defined as any online game, skill-based or otherwise, played by paying money or stakes in expectation of winnings.
Meanwhile, the online skill-gaming sector has written to Home Minister Amit Shah, urging him to intervene against the proposed ban. In a joint appeal, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) warned that the legislation would devastate the fast-growing industry, kill over 200,000 jobs, and push users to unregulated offshore platforms.
The industry bodies argued the move could undermine Prime Minister Narendra Modi's $1 trillion digital economy vision. They said the sector, which includes unicorns like Dream11, Games24x7, and MPL, has generated over Rs 31,000 crore in revenue and contributed over Rs 20,000 crore in taxes annually.
India's overall gaming industry is projected to cross $9.2 billion in revenue by FY29, with real-money gaming accounting for the lion's share.
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