Indian Online Money Gaming Companies Push for Oversight, Not Ban

India’s online money gaming industry is mounting a fierce resistance to the “The Promotion and Regulation of Online Gaming Bill, 2025,” with major trade associations warning that such a prohibition could devastate a sector worth billions of dollars and force millions of players onto illegal platforms.

In a letter penned to Home Minister Amit Shah, three of the industry's most prominent organizations: the All India Gaming Federation, the E-Gaming Federation and the Federation of India Fantasy Sports have called for the government to abandon the proposal claiming that the legislation would "strike a death knell" for legitimate operators while failing to protect consumers.

Real Money Gaming Industry Warns About Economic Impact

The industry coalition painted a stark picture of the economic consequences of a blanket ban, placing the livelihoods of more than 200,000 people at risk. The federations describe “skill-based gaming” as a sunrise sector critically important to the Prime Minister’s $1 trillion digital economy vision. The letter talks about the sector’s economic impact, noting that the industry’s aggregate enterprise valuation exceeds INR 2 lakh crore ($24.3 billion), with annual revenues of over INR 31,000 crore ($3.8 billion) and tax contributions above INR 20,000 crore ($2.4 billion).

The legitimate sector, as defined by the federations, supports upwards of 200,000 direct and indirect jobs and has attracted foreign direct investment inflows surpassing INR 25,000 crore ($3 billion).

Industry representatives maintain that prohibition would not serve its intended purpose of safeguarding users. Instead, they argue, a blanket ban would drive millions of Indian players away from regulated, tax-paying platforms to “illegal matka networks, offshore gambling websites, and fly-by-night operators” that operate outside the scope of any oversight or consumer protection. The federations warn that not only would user safety be severely compromised, but the national exchequer would also suffer massive losses.

Industry Members Have Requested Progressive Regulations

According to the letter, the estimated goods and services tax (GST) revenue loss from activity shifting to offshore gambling operators conservatively stands at over $4 billion, a figure that surpasses the entire revenue of India’s legitimate online gaming sector. 

Instead of prohibition, the industry is advocating for what it calls "progressive regulation" — a transparent and enforceable framework that would ensure user safety, promote responsible gaming practices, and allow legitimate platforms to continue operating while contributing to government revenues.

The federations have requested an urgent meeting with the Home Minister's office to present their data and policy recommendations. They emphasized the need for collaboration between government and industry to balance public welfare concerns with the sector's economic potential.

The proposed legislation comes as governments worldwide grapple with how to regulate online gaming, balancing concerns about gambling addiction and consumer protection against the economic benefits of a rapidly growing digital entertainment sector.

The gaming industry's response suggests the battle over regulation is far from over, with significant economic and policy implications hanging in the balance.