Online Money Gaming a Major Problem for Society: Official Source

The Centre has realised that online real money gaming has been a major problem for society and chose to forego revenue loss in preference to people's welfare, a government source said on Wednesday.

The government has tabled "Promotion and Regulation of Online Gaming Bill 2025" in the Lok Sabha, which proposes to promote eSports and online social gaming while banning money gaming in any form.

"Online gaming involving money has become a major problem for society. Every Parliamentarian has raised concerns about its ill effects. Between revenue from one-third of the industry segment and society welfare, the government has chosen society welfare," the source said.

According to the source, actions against entities involved in money gaming under the bill will be mainly taken by state governments.

The bill proposes that any person offering an online money gaming service in violation of the stipulated provisions will face imprisonment of up to three years or a fine that may extend to ₹1 crore or both. The provisions also stipulate imprisonment of up to two years and or a fine of up to ₹50 lakh, or both, for those indulging in advertisements in contravention of rules.

Several online real money gaming platforms masquerade themselves as a "game of skills" to differentiate themselves from gambling or betting, the source said.

"Those who play the games are victims. They will not be punished as per the bill, but there will be action on those who provide real money gaming platforms, facilitate transaction services, etc," the source said.

On the other hand, the bill seeks to promote eSports and online social games, which are a part of the creative economy.

"There will be a budget for it, schemes and authority for their promotion. They are two-thirds of the industry. It will create job opportunities for the online gaming industry," the source said.

The government has been making efforts for the last three and a half years, which were being bypassed by the real money gaming players, the source added.

"The government tried to check it through GST, but it was being bypassed. There was a proposal for a regulatory body, but it was impacted by a conflict of interest. The provisions under the bill were taken after several complaints were received from the public and their representatives," the source said.

Meanwhile, industry bodies representing real money game players -- India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) -- in a letter to Home Minister Amit Shah raised concerns over the bill, saying it would kill the job-creating industry.

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 ₹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.