In a desperate bid to save India’s booming online skill-gaming sector, industry bodies—the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS)—sent a joint letter to Union Home Minister Amit Shah on August 19, 2025, urging his “urgent intervention” against the proposed Promotion and Regulation of Online Gaming Bill, 2025. The draft bill, approved by the Union Cabinet and slated for introduction in the Lok Sabha on August 20, 2025, seeks to impose a blanket ban on all real-money games (RMG), irrespective of whether they involve skill or chance, threatening the survival of a sector valued at over Rs 2 lakh crore.
The letter, signed by AIGF CEO Roland Landers, FIFS Director General Joy Bhattacharjya, and EGF CEO Anuraag Saxena, labels the proposed ban a “death knell” for an industry that generates Rs 31,000 crore in annual revenue, contributes Rs 20,000 crore in taxes, and employs over 2 lakh people directly and indirectly. With a 20% compound annual growth rate, the sector is projected to double by 2028, having grown from 36 crore gamers in 2020 to over 50 crore in 2024. It has also attracted Rs 25,000 crore in foreign direct investment (FDI) up to June 2022. The federations warn that the ban could force over 400 startups, including market leaders like Dream11, Games24x7, and Winzo, to shut down, eroding investor confidence and stifling India’s digital innovation.
The bill proposes stringent penalties: up to three years in jail and fines of Rs 1 crore for operators, two years and Rs 50 lakh for promoters, and bans on financial transactions linked to RMG, effectively cutting off the industry’s lifeline. Industry leaders argue this will push India’s 45 crore gamers to unregulated offshore platforms and illegal “matka” networks, exposing them to fraud, addiction, and national security risks like money laundering and terror financing. “The only beneficiary will be illegal offshore gambling operators,” the letter states, highlighting the loss of tax revenue and consumer protections.
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Critics, including Congress leader Priyank Kharge, have called the bill a “knee-jerk” move, advocating for regulation over prohibition to safeguard jobs and innovation. Posts on X from @samidhas and @chandrarsrikant echo the industry’s alarm, warning of Rs 20,000 crore in tax losses and Rs 25,000 crore in FDI write-offs. The federations have requested an urgent meeting with Shah to propose a “progressive regulation” framework, emphasizing responsible gaming and user safety to maintain India’s global leadership in digital entertainment.
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