‘Death knell for industry’: Gaming ban to kill 2 lakh jobs, shut 400 companies, warn bodies

India’s top online gaming associations have written to Home Minister Amit Shah, urging him to reject a proposed bill that seeks to ban real-money gaming. They warn that such a move would “strike a death knell” for a fast-growing digital industry that employs lakhs and contributes thousands of crores in taxes.

In a joint appeal dated August 19, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of India Fantasy Sports (FIFS) sought Shah’s “urgent intervention” to halt a draft bill that proposes blanket prohibition on all real-money games — including those based on skill.

“The bill, if passed, will cause serious harm,” the letter states. “It will drive crores of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators.”

The federations argue that rather than protecting users, the ban would dismantle a regulated industry and expose Indian citizens to unregulated, untaxed, and potentially exploitative platforms — many of which pose national security concerns.

With a combined enterprise value of over ₹2 lakh crore, the online skill gaming sector generated ₹31,000 crore in revenue and contributed over ₹20,000 crore in taxes annually. It employs more than 2 lakh people and has attracted ₹25,000 crore in FDI till mid-2022, according to the letter.

“Such a blanket prohibition would strike a death knell for this legitimate, job-creating industry,” it says, warning that over 400 companies could be forced to shut down and India’s image as a digital innovator would suffer.

Instead of prohibition, the industry bodies are advocating for progressive regulation to ensure consumer safety, responsible gaming practices, and continued economic growth.

They have requested a meeting with Shah to present alternatives that would “keep illegal operators at bay” while supporting India’s digital economy goals.