News Brief
Explained: How The Online Gaming Bill 2025 Could Reshape India’s Money Games Sector
Online gaming industry. (Representative image).
Union Minister Ashwini Vaishnaw tabled the Promotion and Regulation of Online Gaming Bill, 2025, in Parliament amid uproar by the Opposition for a debate on Bihar's electoral roll revision.
BJP MP Nishikant Dubey said online gaming has trapped youth across households, leading to financial ruin and even suicides, and called the bill a significant step by the Modi government to protect youth, women, and the poor.
Congress MP Shashi Tharoor said banning online gaming would only drive it underground, empowering criminal mafias, whereas legalising and taxing it could generate revenue for public causes.
He noted that many countries have adopted this approach and warned that with Parliament not functioning effectively, the bill may pass without proper debate.
What the Bill Proposes
As per the report in India Today, If passed in Parliament, the Bill will outlaw all money-based online games, whether of skill or chance, ban advertisements for such platforms, and bar banks from processing related transactions. Violators could face up to three years in prison and fines.
According to the government's citizen engagement platform, MyGovIndia, the Online Gaming Bill 2025 ensures gaming strengthens youth, not harms them.
It said that the bill will boost eSports and social games, create new job opportunities, stop illegal money gaming and harmful practices, and protect users from addiction and risks.
It further said that with the new Online Gaming Bill:
• Real-money apps will be out
• Betting and gambling will be banned
• No fake monetary-return promises
Impact on the Industry
The move poses an existential threat to industry leaders such as Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle.
India’s online gaming market, valued at $3.7 billion, was projected to grow to $9.1 billion by 2029. With 86 per cent of revenues tied to real-money formats, the law could wipe out the sector’s financial backbone overnight.
Industry Pushback
The All India Gaming Federation (AIGF) has urged Union Home Minister Amit Shah to intervene, warning that prohibition would drive crores of legitimate players toward illegal networks.
They noted its significant economic footprint, an enterprise valuation above Rs 2 lakh crore, annual revenues exceeding Rs 31,000 crore, and over Rs 20,000 crore in tax contributions.
The industry, they added, sustains more than two lakh jobs and has drawn FDI worth Rs 25,000 crore.
The draft reportedly leaves little ambiguity: all real-money transactions will be banned, banks and payment gateways cut off, and advertisements outlawed.
Only free-to-play or subscription-based formats without stakes will remain legal.
From Regulation to Prohibition
The proposal follows earlier measures: a 28 per cent GST on gaming revenues (2023), a 30 per cent tax on net winnings (FY 2024-25), and criminalisation of unauthorised betting under the Bharatiya Nyaya Sanhita.
Since 2022, authorities have blocked over 1,400 illegal sites. This bill marks a shift from taxing and regulating to outright prohibition.
Fallout for Jobs and Economy
Industry insiders cited in the India Today report warned that the sector, which supports over one lakh jobs and contributes more than Rs 25,000 crore annually in taxes, could collapse.
“A blanket ban will not protect Indians, it will kill jobs, drive users to illegal operators, and harm the economy,” one insider was quoted as saying, citing constitutional concerns under Articles 14 and 19.
With over 45 crore gamers in India, experts fear a ban could push users to offshore networks, exposing them to fraud, addiction, and lack of consumer safeguards.
The GST loss alone from such operators is estimated at $4 billion annually.
Investment Concerns
Between 2021 and mid-2022, the sector attracted over $2 billion in FDI.
The policy unpredictability could drive investors away, undermining India’s digital economy and slowing innovation.
Prohibition could cripple growth, innovation, and digital sovereignty.
Instead, experts call for progressive regulation that distinguishes skill from chance, protects players, and secures tax revenues.
