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The online gaming industry has raised alarm that the government’s proposed Bill seeking to ban all real money games, including those based on skill, could result in massive job losses and closure of companies. Industry bodies have written to Home Minister Amit Shah urging urgent intervention to protect responsible Indian gaming platforms.
In a joint letter, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS) said that the Bill, if passed, would “destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India’s position as a digital innovator. “
The bodies stressed that the move would strike a “death knell” for a legitimate, fast-growing sector that has been contributing significantly to the economy. The industry highlighted that online skill gaming is a sunrise sector with an enterprise valuation of over ₹2 lakh crores, generating ₹31,000 crores in annual revenue and contributing more than ₹20,000 crores in taxes.
It has been growing at 20 per cent CAGR and is expected to double by 2028. India’s online gamers grew from 36 crores in 2020 to more than 50 crores in 2024, while foreign direct investment in the sector crossed ₹25,000 crores till June 2022.The letter warned that shutting down regulated Indian platforms would push crores of users into the hands of illegal matka networks, offshore gambling websites, and unregulated operators.
These entities, the industry cautioned, operate without consumer safeguards, taxation, or accountability, posing risks of fraud, exploitation, and national security threats. “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 stated.
They added that thousands of startups, engineers, and content creators rely on this ecosystem for their livelihoods, and a blanket prohibition would kill future opportunities. The federations urged the government to consider progressive regulation instead of prohibition, noting that the industry has the potential to become one of the cornerstones of Prime Minister Narendra Modi’s vision of a $1 trillion digital economy.
They also requested an urgent meeting with Amit Shah’s office to present their case and suggest solutions that ensure responsible gaming while safeguarding users. “With your guidance, India can set a global example by building a safe, transparent, and thriving digital gaming ecosystem,” the letter concluded.
The government prepares to introduce the Promotion and Regulation of Online Gaming Bill, 2025. The Bill, to be moved by Electronics and Information Technology Minister, Ashwini Vaishnaw, seeks to establish a national-level framework to regulate the online gaming sector, while prohibiting money games that operate across states or from foreign jurisdictions.
Published on August 20, 2025
