Online gaming Bill introduced in Lok Sabha, industry bodies protest prohibition of real-money games

A Bill seeking to prohibit and regulate online gaming was introduced in the Lok Sabha on Wednesday (August 20, 2025) amid Opposition protests over electoral roll revision in Bihar.

Union Minister Ashwini Vaishnaw introduced the Bill as Opposition members continued to raise slogans and display placards.

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Manish Tewari (Congress) was asked by the chair to make his remarks on opposing the Bill at the introduction stage. However, he said the House should first take up a discussion on the Special Intensive Revision exercise in Bihar.

The Bill prohibits online money gaming or its ads and prescribes imprisonment or fine, or both, for those offering or advertising them. It seeks to differentiate such games from eSports or online social games.

The Bill also calls for the promotion of eSports and online social games.

Gaming bodies urge Amit Shah to intervene

 Industry bodies representing India’s online skill-gaming sector have written to Union Home Minister Amit Shah, seeking his “urgent intervention” against a reported draft Bill that proposes to ban all real-money games, including those based on skill.

In a joint letter, the federations warned that such a blanket prohibition would be a “death knell” for the industry, destroying jobs and pushing crores of users towards illegal offshore betting and gambling platforms.

The letter, dated August 19, was sent on behalf of the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS).

The letter stated 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 Rs 20,000 crore in direct and indirect taxes annually and is projected to grow at a 20% compound annual growth rate (CAGR), doubling by 2028.

The total number of Indian online gamers grew from 36 crore in 2020 to over 50 crore in 2024, it noted, adding that the industry has attracted Foreign Direct Investment (FDI) of over ₹25,000 crore till June 2022 and currently supports over two lakh direct and indirect jobs.

“Such a blanket prohibition would strike a death knell for this legitimate, job-creating industry, and would cause serious harm to Indian users and citizens.

“This Bill, if passed, will cause serious harm to Indian users and citizens. By shutting down regulated and responsible Indian platforms, it will drive crores of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without any safeguards, consumer protections, or taxation,” the industry bodies said.