The rapidly growing online gaming sector in India is on the brink of a potential serious crisis as the central government is preparing to introduce the Online Gaming Promotion and Regulation Bill 2025 in Parliament. Major gaming companies argue that if the government imposes restrictions through this bill, the sector could lose 200,000 jobs, also impacting government revenue.
Sources indicate that the draft bill proposes a ban on all money-based online games of skill or luck. It suggests blocking the offering and advertising of such games and urges banks and financial institutions to halt related transactions.
Direct Impact on Major Companies
The bill is expected to greatly affect companies like Dream11, Games24x7, Winzo, Gameskraft, 99Games, KhelOFantasy, and My11Circle. These market leaders have collectively developed one of the most dynamic consumer-tech sectors in the country, providing employment to thousands and attracting substantial foreign investment.
However, officials from these companies have publicly refrained from commenting on the bill. Sources suggest they are waiting for the bill's presentation.
Potential Loss of 200,000 Jobs: Report
According to Business Today, the online gaming sector currently employs over 200,000 professionals in high-skilled areas such as engineering, product development, marketing, and operations. In recent years, over 400 startups have entered the sector, securing nearly ₹25,000 crore ($3 billion) in direct foreign investment.
Analysts warn that a broad government ban could lead to massive job losses and undermine investor confidence in India's digital economy.
Impact on Government Revenue
Analysts also highlight the potential financial impact on the government. The gaming sector currently contributes approximately ₹20,000 crore ($2.4 billion) in tax revenue annually. Amid a slowing economy and revenue pressure, critics question whether the government can afford to lose such revenue.
Ripple Effects on Other Industries
The effects of a gaming sector ban would extend to other industries, as gaming platforms are significant spenders on advertising, media, and tech services, with annual expenditures around ₹6,000 crore ($720 million). Banning this sector would severely impact these related industries.
Moreover, user safety remains a pressing concern. With 450 million online gamers in India playing across various platforms, the industry argues that a ban could drive users to unregulated foreign sites outside Indian law, increasing risks of fraud, violence, and addiction.
