The Ministry of Electronics and Information Technology (MeitY) has come out in strong defense of the Promotion and Regulation of Online Gaming Bill 2025, which seeks to ban real-money online games in India.
S. Krishnan, IT Secretary, described the bill as a “balanced” framework that provides long-awaited clarity to the fast-growing gaming industry. He stressed that while money-based games will be prohibited, the creative side of gaming—such as social games and esports—remains protected.
The bill, cleared by the Union Cabinet on August 19 and scheduled to be tabled in the Lok Sabha on August 20, prohibits offering or facilitating online money games, whether based on skill or chance, if played with stakes or fees in expectation of monetary rewards.
Krishnan clarified that the law targets platforms, not players:
“There is no criminalisation of players. We have only set rules for the platforms providing these money games.”
Despite assurances, industry bodies like AIGF, EGF, and FIFS have warned that a blanket ban could devastate the sector, which employs over 200,000 people and contributes ₹20,000 crore in taxes annually. They argue that such a move risks driving users towards unregulated offshore platforms accessed via VPNs.
Also Read: GST Reform Puts Lottery-Dependent States Under Pressure
The online skill-gaming sector, valued at over ₹31,000 crore in revenues, is among India’s fastest-growing digital industries, with unicorns like Dream11, Games24x7, and MPL leading the space. A ban could hit investor sentiment in the broader tech and digital economy, dampening near-term growth.
The online gaming market is projected to double by 2028, growing at 20% CAGR.
A ban on real-money games could reduce revenue streams for listed gaming and tech firms like Nazara Technologies.
Concerns over VPN-based access and offshore operators remain a major enforcement challenge.
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