India’s leading gaming federations have raised alarm over reports of a proposed bill that would ban online skill-based games, cautioning that such a move could devastate the country’s digital economy. The All-India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) have jointly written to Home Minister Amit Shah, expressing their “gravest concern” about the draft legislation.
According to them, a blanket ban on real-money skill games would effectively “sound the death knell” for a legitimate and job-creating sector, while simultaneously pushing millions of users toward unregulated, unsafe platforms. Instead, they argue, India should focus on smart regulation that can safeguard users, preserve jobs, and ensure healthy tax contributions to the economy.
Indian gaming groups start protesting Modi’s plan to impose a ban on online games played with money, like fantasy cricket, rummy et al. It “would strike a death knell for this legitimate, job-creating industry, and would cause serious harm to Indian users.” pic.twitter.com/CaSlAKJBHX
— Aditya Kalra (@adityakalra) August 20, 2025
Key Takeaways
- Courts in India have consistently ruled that skill-based games are not gambling, making a blanket ban appear unconstitutional.
- Such a move would drive millions of players to illegal offshore gambling sites, exposing them to fraud, financial loss, and addiction.
- The legitimate online gaming sector, valued at $25 billion, contributes over ₹25,000 crore in annual taxes and supports more than 1 lakh jobs.
- Between January 2021 and June 2022 alone, the industry attracted over $2 billion in foreign direct investment (FDI), which now stands at risk.
- A ban could undercut India’s ambition of becoming a global digital leader and derail its $1 trillion digital economy vision.
- The only real winners from such a prohibition would be offshore gambling operators.
A Threat to India’s Digital Future
In their letter, the federations describe online skill gaming as a “sunrise sector” with an enterprise valuation of more than ₹2 lakh crores and annual revenues topping ₹31,000 crores. Growing at a steady compound annual growth rate of about 20 percent, the sector is projected to double by 2028, further cementing its role in the country’s digital ecosystem.
They warn that a ban would not just be economically damaging but also unconstitutional. Article 19(1)(g) of the Constitution protects the right to conduct trade and business, and both High Courts and the Supreme Court have, for over seven decades, upheld that skill-based games fall outside the ambit of gambling. Such a ban, they argue, would also clash with Articles 14 and 19(1)(a), threatening fundamental rights.
The letter highlights another concern: Indian operators are currently the “last line of defence” against unregulated offshore platforms. If the domestic industry is wiped out, illegal actors would take over, eroding tax revenues, compromising user safety, and weakening India’s digital sovereignty. Conservative estimates suggest that GST losses from offshore gambling operators could exceed $4 billion—ironically, more than the entire revenue of India’s legitimate industry.
At present, the online gaming sector supports over 2 lakh direct and indirect jobs, spanning engineers, developers, animators, designers, and content creators. If the bill passes, more than 400 companies could be forced to shut down, erasing these jobs overnight.
Industry leaders stress that online gaming is not merely an entertainment space but also a cornerstone of India’s $1 trillion digital economy vision. They have requested the government to provide an opportunity to present a progressive framework that clearly distinguishes between games of skill and games of chance. Such a model, they say, would prioritize user safety, strengthen grievance redressal mechanisms, and secure steady tax revenues for the exchequer.
#RegulateNotBan Trends as Netizens Rally Against Blanket Ban
A sweeping wave of citizen support for India’s online gaming industry has taken over social media, with #RegulateNotBan trending across platforms. The momentum follows the passing of the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha, spearheaded by IT Minister Ashwini Vaishnaw, which proposes a blanket ban on several gaming formats and now awaits discussion in the Rajya Sabha. Adding to the chorus, the country’s leading online gaming companies have submitted a formal petition to the government, urging for balanced regulation instead of prohibition.
The public outcry is no longer limited to gamers. Professionals, entrepreneurs, and investors are voicing alarm over the bill’s wider economic fallout; particularly its chilling effect on Foreign Direct Investment (FDI), innovation and India’s digital growth story. The industry has come together with an online petition urging support of the masses to to reject or amend the Promotion and Regulation of Online Gaming Bill, 2025.
Netizens rallying under the trend argue that instead of a ban, balanced regulation is essential to protect jobs, safeguard investments, and strengthen India’s position as a global digital hub.
Frequently Asked Questions
Q1. What is the difference between games of skill and games of chance?
A1. Games of skill are those where the outcome is determined by the player’s knowledge, experience, training, and attention, while games of chance rely on luck or random outcomes, such as a coin toss or a dice roll. Courts in India have repeatedly upheld the distinction, ruling that games like poker and fantasy sports are based on skill.
Q2. How many people play online games in India?
A2. According to the letter from the gaming federations, there are over:
- 50 crore online gamers in India as of 2024. Another source states that over
- 450 million Indians play online games, with many engaging in skill-based games.
Q3. Why do gaming federations believe a ban would help illegal operators?
A3. The federations argue that banning regulated Indian platforms would not stop people from playing online games. Instead, it would force millions of users to seek out illegal offshore betting websites, which operate without any safeguards, consumer protection, or taxation. This would leave users vulnerable to fraud and addiction, and the government would lose out on significant tax revenue.
