Having tabled the bill that seeks to regulate online gaming, the government is now faced with the dilemma of separating the wheat from the chaff in differentiating between online betting that robs people of money and promoting “creative economy” that creates job opportunities.
The Promotion and Regulation of Online Gaming Bill 2025, which was introduced in the Lok Sabha on Wednesday is an outcome of at least three-and-a-half years of efforts by the government to curb loss of money to the tune of crores of rupees, said a source privy to the matter, adding that rules were being bypassed by real money gaming players.
Having realised that online real money gaming is becoming a problem in the society, government officials said they decided to forego revenue losses in favour of people’s welfare.
An official source said government estimates place at least 45 crore people losing nearly ₹20,000 crore annually in online real money gaming.
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The government, said the source, tried to check fraud 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.
"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.
While action against entities involved in money gaming will primarily be taken by state governments under the bill, those who play the games will be treated as victims and not punished.
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.
But, while the bill aims to curb money losses, it also attempts at drawing a line to prevent eSports and online social gaming from losing popularity, which it clubs under “creative economy” that helps in creating jobs.
"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.
Meanwhile, industry bodies representing real money game players – India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) – have protested against the government’s move in a letter to the Home Minister, Amit Shah.
The letter states 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 per cent compound annual growth rate (CAGR), doubling by 2028, in lieu of which, a move as extreme as prohibiting playing of these games can fire back, claim the bodies.
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