The government estimates that around 45 crore people lose close to ₹20,000 crore every year in online real money gaming, an official source said on Wednesday (August 20, 2025).
According to the source, the government has realised that online real money gaming is a major problem for society and chose to forego revenue loss in preference to people’s welfare.
“There is a rough estimate that 45 crore people lose money every year. The total impact of the loss is estimated to be tentatively around ₹20,000 crore,” the source added.
The government has tabled “Promotion and Regulation of Online Gaming Bill 2025” in the Lok Sabha, which proposes to promote eSports and online social gaming while banning money gaming in any form.
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“Online gaming involving money has become a major problem for society. Every Parliamentarian has raised concerns about its ill effects. Between revenue from one-third of the industry segment and society welfare, the government has chosen society welfare,” the source said.
According to the source, actions against entities involved in money gaming under the bill will be mainly taken by state governments.
The bill proposes that any person offering an online money gaming service in violation of the stipulated provisions will face imprisonment of up to three years or a fine that may extend to ₹1 crore or both. The provisions also stipulate imprisonment of up to two years and or a fine of up to ₹50 lakh, or both, for those indulging in advertisements in contravention of rules.
Several online real money gaming platforms masquerade themselves as a “game of skills” to differentiate themselves from gambling or betting, the source said.
“Those who play the games are victims. They will not be punished as per the bill, but there will be action on those who provide real money gaming platforms, facilitate transaction services, etc,” the source said.
On the other hand, the bill seeks to promote eSports and online social games, which are a part of the creative economy.
“There will be a budget for it, schemes and authority for their promotion. They are two-thirds of the industry. It will create job opportunities for the online gaming industry,” the source said. The government has been making efforts for the last three and a half years, which were being bypassed by the real money gaming players, the source added.
“The government tried to check it through GST, but it was being bypassed. There was a proposal for a regulatory body, but it was impacted by a conflict of interest. The provisions under the bill were taken after several complaints were received from the public and their representatives,” the source said.
Gaming bodies urge Amit Shah to intervene
Industry bodies representing India’s online skill-gaming sector have written to Union Home Minister Amit Shah, seeking his “urgent intervention” against a reported draft Bill that proposes to ban all real-money games, including those based on skill.
In a joint letter, the federations warned that such a blanket prohibition would be a “death knell” for the industry, destroying jobs and pushing crores of users towards illegal offshore betting and gambling platforms.
The letter, dated August 19, was sent on behalf of the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS). The letter stated that the online skill gaming industry is a “sunrise sector” with an enterprise valuation of over ₹2 lakh crore and annual revenue exceeding ₹31,000 crore. It contributes over ₹20,000 crore in direct and indirect taxes annually and is projected to grow at a 20% compound annual growth rate (CAGR), doubling by 2028.
The total number of Indian online gamers grew from 36 crore in 2020 to over 50 crore in 2024, it noted, adding that the industry has attracted Foreign Direct Investment (FDI) of over ₹25,000 crore till June 2022 and currently supports over two lakh direct and indirect jobs.
“Such a blanket prohibition would strike a death knell for this legitimate, job-creating industry, and would cause serious harm to Indian users and citizens.
“This Bill, if passed, will cause serious harm to Indian users and citizens. By shutting down regulated and responsible Indian platforms, it will drive crores of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without any safeguards, consumer protections, or taxation,” the industry bodies said.
Published – August 20, 2025 02:49 pm IST