&imwidth=800&imheight=600&format=webp&quality=medium "Online Gaming Bill 2025: How much loss will the legislation cause? Key numbers")
The government on Wednesdayintroduced the Online Gaming Bill in the Lok Sabha, which prohibits harmful online money gaming services, advertisements, and financial transactions linked to such entities.
What Is the Online Gaming Bill 2025?
The Promotion and Regulation of Online Gaming Bill, 2025 proposes to outlaw all online betting and gambling (Satta and Jua) activities, including Poker, Rummy, and other online games and online lotteries involving money. The government said in a statement on Wednesday that the bill seeks to ban all entities offering, operating, or facilitating online money games, irrespective of their skill, chance-based nature. The government has taken this move as it wants to protect India's youth from predatory real-money games, as they form addiction in participants.
How Much Loss Will the Online Gaming Bill Cause?
The online gaming industry wrote to the Union Home Minister Amit Shah, urging him to protect responsible platforms.
In a joint letter, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of India Fantasy Sports (FIFS) said in a recent letter that the bill would destroy2 lakh jobs, resulting in the shutdown of 400 companies.
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It said the enterprise valuation of the industry was Rs 2 lakh crore. It said it was generating Rs 31000 crore in annual revenue and contributing Rs 20000 crore in taxes.
The industry is growing at a 20 per cent CAGR and is expected to double by 2028.
"Sir, on behalf of the millions of young entrepreneurs, developers, and professionals working in India's sunrise digital skill gaming sector, we write to you with the deepest respect and gravest concern regarding the news reports about the draft Bill that seeks to ban all real money games, including those based on skill," the industry bodies had stated.
Who Will Be Most Affected by the Online Gaming Bill?
Dream11, MPL, Games24X7, Winzo, Zupee, and publicly listed Nazara Technologies are among those hit by the bill. The industry is estimated to be Rs 78551 crore by 2029.
Kazim Rizvi, Founding Director of public policy think-tank The Dialogue, told ET that GST revenues from gaming surged to Rs 6,909 crore, and TDS collections crossed Rs 1,080 crore in FY24. These figures will be adversely impacted if the bill becomes law.
The bill has proposed up to 3 years' imprisonment or Rs 1 crore fine or both for violators.