Bill to regulate online gaming tabled in Lok Sabha
Union Minister Ashwini Vaishnaw on Wednesday tabled the Promotion and Regulation of Online Gaming Bill, 2025, in Lok Sabha that encourages e-sports and online social games, while prohibiting harmful online money gaming services, advertisements, and financial transactions related to them.
The bill also proposes to outlaw all online betting and gambling (Satta and Jua) activities – from online fantasy sports to online gambling (like Poker, Rummy and other card games) and online lotteries, the Ministry of Electronics and IT said in a statement, minutes after introduction of the Bill.
It proposes the creation of a central authority to provide coordinated policy support, strategic development, and regulatory oversight of the sector. It seeks to prohibit online money games involving betting and wagering, particularly those operating across state borders or from foreign jurisdictions.
Aimed at protecting youth and vulnerable populations, the bill also focuses on preventing adverse social, economic, psychological and privacy-related harms. It seeks to safeguard the integrity of financial systems, maintain public order, and ensure responsible use of digital technologies, while establishing a uniform national legal framework in the public interest.
Vaishnaw had earlier informed Parliament that the government’s policies are designed to ensure an open, safe, trusted and accountable Internet for its users. To this end, steps have already been taken to regulate financial transactions and strengthen user data protection on digital platforms, including gaming.
In recent years, the government has introduced a 30% income tax on net winnings from online games (effective AY 2024–25) and imposed 28% GST on online gaming from October 1, 2023. Offshore suppliers of money gaming are also being regulated under the IGST Act.
Industry seeks Amit Shah’s intervention against blanket ban
Meanwhile, leading industry bodies – the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS) – have written to Union Home Minister Amit Shah, urging him to intervene against any move for a blanket ban on real-money games, including those based on skill.
In their joint representation, the associations argued that such a ban would severely impact India’s ₹2 lakh crore online skill-gaming industry, which they described as integral to the Prime Minister Narendra Modi’s vision of a $1 trillion digital economy.
The sector currently generates ₹31,000 crore in annual revenue, contributes over ₹20,000 crore in taxes, and supports more than 2 lakh jobs. It has attracted ₹25,000 crore in FDI up to mid-2022 and continues to grow at a 20% CAGR, with its valuation expected to double by 2028. The number of online gamers in India has risen from 36 crore in 2020 to over 50 crore in 2024.
The gaming bodies said to Shah, “On behalf of the millions of young entrepreneurs, developers, and professionals working in India’s sunrise digital skill gaming sector, we write to you with the deepest respect and gravest concern regarding the news reports about the draft bill that seeks to ban all real money games, including those based on skill. 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.”
The gaming bodies urged the government to pursue progressive regulation instead of prohibition, stating that India has the opportunity to become a global leader in gaming, technology and digital entertainment.
“We earnestly request your urgent intervention and seek an opportunity to present our case, along with solutions that ensure responsible gaming while protecting users. We firmly believe that progressive regulation and not prohibition is the way forward for the legitimate Indian industry. With your guidance, India can set a global example by building a safe, transparent, and thriving digital gaming ecosystem,” the joint statement said.
