Latest news with #JaySayta
Economic Times
5 hours ago
- Business
- Economic Times
Proposed online gaming bill could wipe out India's real money gaming sector, push users offshore, warn industry leaders
Agencies The Union Cabinet has approved the Promotion and Regulation of Online Gaming Bill, 2025 for introduction in Parliament, a move industry experts say could effectively wipe out India's real money gaming (RMG) draft bill seeks to encourage e-sports and social online games but proposes a blanket ban on real-money gaming. It makes offering, aiding, abetting, or promoting such games an offence, with heavy fines and harsher penalties for repeat violations. Financial institutions would be barred from processing related payments, while authorities would be empowered to block content, investigate violations, and seize property. Industry concerns Stakeholders warned that outright prohibition could backfire, pushing users to illegal offshore gambling and unregulated platforms.'A restriction will push millions of Indian users toward offshore betting websites, matka operators, and unregulated platforms, exposing them to fraud, addiction risks, and zero consumer protection,' said Rameesh Kailasam, president and CEO of an industry group representing internet startups. 'The bill seems aimed at offshore gambling and betting apps but ends up targeting law-abiding, tax-paying Indian startups.' Economic fallout The online gaming sector employs more than 200,000 professionals across 400+ startups and has drawn Rs 25,000 crore in FDI. Industry leaders warned that the ban could erode investor confidence, choke FDI inflows, and cost the exchequer an estimated Rs 20,000 crore in lost taxes. An allied ecosystem that spends nearly Rs 6,000 crore annually on advertising, technology, and infrastructure could also take a hit. Calls for regulation, not prohibition Industry representatives are urging the government to pursue 'smart regulation' that distinguishes games of skill from games of chance, ensures user safety and responsible gaming, enforces grievance redressal, and clarifies taxation policies. Constitutional challenges Legal experts have flagged constitutional concerns, noting that courts have previously ruled skill-based games are not gambling.'The Bill is extremely problematic, prima facie unconstitutional and not sustainable in law. 'Betting and gambling' as well as 'amusements and entertainments' are squarely state subjects,' said gaming lawyer Jay Sayta, who represents several gaming firms. 'Parliament lacks legislative competence here, except under Article 252 if states pass resolutions. The Centre should wait until the Supreme Court delivers its verdict in the Gameskraft case before proceeding.' Also Read: Government proposes dedicated regulator for online gaming under new law Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Hacking, ransom, lawsuits: Why social engineering is TCS, Cognizant's latest headache Govt easing policies to boost growth; when will industry play ball? Can new shipping laws bury the ghost of British legacy? How IDBI banker landed plush Delhi properties in Amtek's INR33k crore skimming Stock Radar: M&M hits fresh record high in August 2025; time to buy or book profits? Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus F&O Radar | Deploy Bull Call Spread in Nifty to play index reversal Stock picks of the week: 5 stocks with consistent score improvement and return potential of more than 20% in 1 year
Time of India
5 hours ago
- Business
- Time of India
Proposed online gaming bill could wipe out India's real money gaming sector, push users offshore, warn industry leaders
Academy Empower your mind, elevate your skills The Union Cabinet has approved the Promotion and Regulation of Online Gaming Bill, 2025 for introduction in Parliament, a move industry experts say could effectively wipe out India's real money gaming (RMG) draft bill seeks to encourage e-sports and social online games but proposes a blanket ban on real-money gaming. It makes offering, aiding, abetting, or promoting such games an offence, with heavy fines and harsher penalties for repeat institutions would be barred from processing related payments, while authorities would be empowered to block content, investigate violations, and seize warned that outright prohibition could backfire, pushing users to illegal offshore gambling and unregulated platforms.'A restriction will push millions of Indian users toward offshore betting websites, matka operators, and unregulated platforms, exposing them to fraud, addiction risks, and zero consumer protection,' said Rameesh Kailasam, president and CEO of an industry group representing internet startups. 'The bill seems aimed at offshore gambling and betting apps but ends up targeting law-abiding, tax-paying Indian startups.'The online gaming sector employs more than 200,000 professionals across 400+ startups and has drawn Rs 25,000 crore in FDI. Industry leaders warned that the ban could erode investor confidence, choke FDI inflows, and cost the exchequer an estimated Rs 20,000 crore in lost taxes. An allied ecosystem that spends nearly Rs 6,000 crore annually on advertising, technology, and infrastructure could also take a representatives are urging the government to pursue 'smart regulation' that distinguishes games of skill from games of chance, ensures user safety and responsible gaming, enforces grievance redressal, and clarifies taxation experts have flagged constitutional concerns, noting that courts have previously ruled skill-based games are not gambling.'The Bill is extremely problematic, prima facie unconstitutional and not sustainable in law. 'Betting and gambling' as well as 'amusements and entertainments' are squarely state subjects,' said gaming lawyer Jay Sayta, who represents several gaming firms. 'Parliament lacks legislative competence here, except under Article 252 if states pass resolutions. The Centre should wait until the Supreme Court delivers its verdict in the Gameskraft case before proceeding.'
