Online Gaming Bill: 2 lakh jobs, Rs 20,000 cr in GST at risk, industry warns
Under the draft bill, banks and financial institutions will be prohibited from facilitating fund transfers for online money gaming. It also seeks to bar advertisements promoting real-money gaming, while encouraging the growth of E-sports and skill-based non-monetary online games.
- Aug 19, 2025,
- Updated Aug 19, 2025 7:57 PM IST
India’s fast-growing online gaming sector is staring at a potential wipeout, with the government preparing to introduce the “Promotion & Regulation of Online Gaming Bill 2025” in Parliament. According to sources, the draft legislation seeks to prohibit all money-based online games, irrespective of whether they involve skill or chance. The bill proposes a ban on offering and advertising such games and disallows banks and financial institutions from processing any related transactions.
The companies most exposed include market leaders such as Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle. Together, they have helped build one of the country’s most dynamic consumer-tech sectors, employing thousands and attracting major foreign investment. Executives at these firms have so far declined to speak on record, with insiders describing a state of shock and saying they will wait until the bill is tabled before making any public comment.
The industry as a whole today employs more than 200,000 professionals in high-skill roles spanning engineering, product development, marketing, and operations. Over 400 start-ups have entered the space in recent years, drawing nearly Rs 25,000 crore in foreign direct investment. Analysts warn that a blanket ban will not only lead to mass job losses but could also shake investor confidence in India’s wider digital economy.
The fiscal impact on the government itself is also significant. The gaming sector contributes nearly Rs 20,000 crore annually in taxes. At a time when the economy is slowing and revenues are under pressure, critics question whether the exchequer can afford to forgo such inflows. There are also second-order effects: gaming platforms are among the biggest spenders on advertising, media, and technology services, with annual spends of about Rs 6,000 crore. A freeze on the sector would leave a dent in these allied industries as well.
User safety remains another concern. India’s 45 crore online gamers currently engage on regulated platforms with checks and balances. A ban, industry voices argue, could push them to unregulated offshore sites that are beyond the ambit of Indian law, raising risks of fraud, predatory practices, and addiction.
The government is framing the proposed ban as a measure to address addiction and safeguard users. However, for an industry once celebrated as a sunrise sector and a pillar of India’s digital economy, the draft legislation poses nothing less than an existential crisis.
India’s fast-growing online gaming sector is staring at a potential wipeout, with the government preparing to introduce the “Promotion & Regulation of Online Gaming Bill 2025” in Parliament. According to sources, the draft legislation seeks to prohibit all money-based online games, irrespective of whether they involve skill or chance. The bill proposes a ban on offering and advertising such games and disallows banks and financial institutions from processing any related transactions.
The companies most exposed include market leaders such as Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle. Together, they have helped build one of the country’s most dynamic consumer-tech sectors, employing thousands and attracting major foreign investment. Executives at these firms have so far declined to speak on record, with insiders describing a state of shock and saying they will wait until the bill is tabled before making any public comment.
The industry as a whole today employs more than 200,000 professionals in high-skill roles spanning engineering, product development, marketing, and operations. Over 400 start-ups have entered the space in recent years, drawing nearly Rs 25,000 crore in foreign direct investment. Analysts warn that a blanket ban will not only lead to mass job losses but could also shake investor confidence in India’s wider digital economy.
The fiscal impact on the government itself is also significant. The gaming sector contributes nearly Rs 20,000 crore annually in taxes. At a time when the economy is slowing and revenues are under pressure, critics question whether the exchequer can afford to forgo such inflows. There are also second-order effects: gaming platforms are among the biggest spenders on advertising, media, and technology services, with annual spends of about Rs 6,000 crore. A freeze on the sector would leave a dent in these allied industries as well.
User safety remains another concern. India’s 45 crore online gamers currently engage on regulated platforms with checks and balances. A ban, industry voices argue, could push them to unregulated offshore sites that are beyond the ambit of Indian law, raising risks of fraud, predatory practices, and addiction.
The government is framing the proposed ban as a measure to address addiction and safeguard users. However, for an industry once celebrated as a sunrise sector and a pillar of India’s digital economy, the draft legislation poses nothing less than an existential crisis.