Is the Industry Urging an Urgent Meeting with the Government Over the Online Gaming Bill?
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Synopsis
As the online gaming bill nears introduction in the Lok Sabha, industry leaders claim it poses severe risks to Indian users. They argue for urgent discussions with the government to prevent detrimental effects on a burgeoning sector that significantly contributes to the economy and employment.
Key Takeaways
- Urgent meeting requested by industry leaders
- Bill could harm Indian users and the economy
- Online skill gaming sector has significant growth potential
- Government aims to regulate illegal betting
- Over 50 crore gamers in India projected by 2024
New Delhi, Aug 20 (NationPress) As the Cabinet has given its nod to a bill aimed at regulating online gaming, which is expected to be introduced in the Lok Sabha this Wednesday, prominent industry leaders have urgently called for a meeting with the government. They argue that the proposed Bill, if enacted, “will inflict serious damage on Indian users and citizens.”
In a letter co-authored by the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of India Fantasy Sports (FIFS), the industry representatives expressed their belief that the online skill gaming sector could play a pivotal role in realizing the Prime Minister’s dream of a $1 trillion digital economy.
“With your backing, we believe that India's gaming industry can evolve responsibly, create jobs, contribute significantly to tax revenues, and help curb illegal operators,” stated the gaming organizations in their correspondence.
The Bill aims to establish a legal framework for online gaming platforms and impose penalties for gambling through digital applications. It raises concerns about addiction, fraud, and the lack of uniformity across state laws while outlining penalties and punishments.
The Ministry of Electronics and Information Technology may be appointed as the central authority for regulating online gaming. Additionally, the Bill seeks to eradicate unauthorized online betting.
Gaming federations assert that the online skill gaming industry is a burgeoning sector, boasting an enterprise valuation of over Rs 2 lakh crore, with revenues exceeding Rs 31,000 crore and contributing over Rs 20,000 crore in annual direct and indirect taxes. The sector is poised to grow at a CAGR of 20%, potentially doubling by 2028.
The number of online gamers in India surged from 36 crore in 2020 to more than 50 crore in 2024.
“India's gaming industry attracted FDI of over 25,000 crores by June 2022, and it currently supports more than 2 lakh direct and indirect jobs. These figures are expected to rise significantly in the coming years,” the letter further indicated.
The leaders cautioned that “a blanket ban would be detrimental to this legitimate, job-creating industry, causing severe repercussions for Indian users and citizens”.
“By shutting down regulated and responsible Indian platforms, it will push millions of players into the hands of illegal matka networks, offshore gambling sites, and unscrupulous operators who lack safeguards, consumer protections, or tax compliance,” they added.
The proposed prohibition would not only eliminate job opportunities but also deter global investment and investor confidence, jeopardize over 2 lakh jobs, lead to the closure of more than 400 companies, and undermine India's status as a digital innovator.
“The sole beneficiaries of this bill will be the illegal offshore gambling operators,” the letter concluded.
The government has been working on regulating the online gaming industry, imposing a 28% GST on online gaming operations since October 2023.
Point of View
It is imperative to recognize the delicate balance between regulation and innovation in the online gaming industry. While the government's intention to regulate is evident, it is crucial to engage with industry stakeholders to ensure that any measures enacted do not stifle growth or drive users towards illegal platforms. A collaborative approach is essential for advancing India's digital economy while safeguarding consumer interests.
NationPress
07/10/2025
Frequently Asked Questions
What is the main concern of the industry regarding the bill?
The industry is concerned that the bill, if passed, could cause significant harm to Indian users and the gaming ecosystem, driving players towards illegal platforms.
What are the expected benefits of the online skill gaming sector?
The sector is projected to contribute significantly to employment, tax revenues, and the overall digital economy, with a potential valuation of over Rs 2 lakh crore.
What action has the government taken regarding online gaming regulations?
The government has imposed a 28% GST on online gaming activities and is in the process of establishing a legal framework for the industry.
How many online gamers are there in India?
The number of online gamers in India has increased from 36 crore in 2020 to over 50 crore in 2024.
What could be the impact of a blanket ban on online gaming?
A blanket ban could lead to significant job losses, deter investments, and push users towards unregulated and unsafe gambling options.
