Rama Krishna Sangem
Experts are divided over the Modi government’s move to ban Online gaming. India’s booming online gaming industry faces its biggest crisis yet. Some see it a huge loss to the online gaming industry and business while others look at it as a social evil – equal to gambling which leads to financial problems to millions of innocent people and a cause to suicides or mental depression.
Many developed countries allow online gaming as a professional activity. But, India is unable to handle this digital marvel cum mania. Of course, there is political pressure on the Government to check the extra-leisurely activity that makes youth indolent and lazy.
The Online Gaming Bill 2025, tabled in the Lok Sabha, seeks to ban all money-based online games — from rummy and poker to fantasy sports. Industry bodies like the All India Gaming Federation (AIGF) warn the bill could deliver a death knell to a ₹2 lakh crore sector that employs over 2 lakh people and contributes ₹20,000 crore annually in GST.
With valuations of giants like Dream11 ($8B) and MPL ($2.5B) at stake, the fallout could be massive — wiping out jobs, FDI, and innovation. Supporters, however, argue the crackdown is necessary to curb fraud, addiction, and illegal gambling. Will India regulate or ban?
Once India’s fastest-growing digital entertainment sector is now at a crossroads. The Union Cabinet has cleared the Online Gaming Bill, setting the stage for a sweeping overhaul that promises a boost for esports, while real-money platforms like Dream11, Games24x7, Winzo, and more — the giants of India’s online gaming boom — face a crippling existential crisis.
What does the Bill say?
The bill seeks to regulate online gaming platforms and curb the surge in illegal betting activities. Sparked by fraud cases linked to betting apps and celebrity promotions, the draft law aims to bring the entire space under a structured legal framework.
If passed (not if, as the government has enough support to pass the Bill), it would ban all money-based online games — whether based on skill or chance — outlaw advertisements for such platforms, and block banks and financial institutions from processing transactions. Violators could face up to three years in jail and fines, according to the draft.
Money involved
India’s online gaming industry, valued at $3.7 billion today and projected to touch $9.1 billion by 2029, depends overwhelmingly on real-money games. Nearly 86% of its current revenue comes from RMG formats. The bill could erase that lifeline, leaving the sector staring at a collapse. Industry estimates peg the current enterprise valuation at over Rs. 2 lakh crores, with Rs. 31,000 crores in annual revenue and Rs. 20,000 crores in direct and indirect taxes. Growing at a 20% CAGR, it was on track to double by 2028 — a forecast now under severe threat.
Gaming is different from betting
Esports stakeholders have hailed the move as a much-needed separation between gaming and betting. They draw a line between online gaming and betting . Betting is outright gambling, where there is no skill involved in it.But, gaming is a kind of sport where some skills are required.
“This bill marks a historic turning point for Indian esports. By drawing a clear line between skill-based competitive gaming and betting, it safeguards the integrity of our ecosystem while opening doors for structured growth. Esports is a sport- built on skill, discipline and years of grind. With government recognition and the right infrastructure, India is now poised to become a global powerhouse in esports and gaming culture,” said Animesh ‘Thug’ Agarwal, Co-founder, S8UL.
We need to see, if the parliament passes the Bill in the present form or makes some amendments to it.
