New Delhi: As the Cabinet approved a bill to regulate online gaming which is likely to be introduced in the Lok Sabha on Wednesday, leading industry representatives have requested an urgent meeting with the government, saying that the Bill, if passed, “will cause serious harm to Indian users and citizens”.
In the letter, jointly written by the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS), the industry leaders said they “truly believe that the online skill gaming industry can be one of the cornerstones of Prime Minister’s vision for a $1 trillion digital economy”.
“We are confident that with your support, India’s gaming sector can continue to grow responsibly, create employment, contribute significant tax revenues, and keep illegal operators at bay,” the gaming organisations said in the letter.
The Bill seeks to bring online gaming platforms under a legal framework and introduce penalties for gambling through digital apps. The proposed law flags concerns over addiction, fraud, and inconsistencies across state laws and has provisions for penalty and punishment.
The Ministry of Electronics and Information Technology could be designated as central regulator for online gaming. The bill is also meant to put an end to unauthorised online betting.
According to gaming federations, online skill gaming is a sunrise sector with over Rs 2 lakh crore enterprise valuation, over Rs 31,000 crore in revenue, over Rs 20,000 crore in annual direct and indirect taxes, and is set to grow by 20 per cent CAGR to reach even greater heights and double by 2028.
The total number of Indian online gamers grew from 36 crore in 2020 to over 50 crore in 2024.
“India’s gaming industry attracted FDI of over 25,000 crores till June 2022. The industry currently supports over 2 lakh direct and indirect jobs, and these numbers will grow substantially in the next few years,” the letter further said.
They said that “a blanket prohibition would strike a death knell for this legitimate, job-creating industry, and would cause serious harm to Indian users and citizens”.
“By shutting down regulated and responsible Indian platforms, it will drive crores of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without any safeguards, consumer protections, or taxation,” the letter said.
The proposed ban would not only kill these opportunities but also deter global investment and investor sentiment, destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India’s position as a digital innovator, it added.
“The only beneficiary of this bill will be the illegal offshore gambling operators,” the letter noted.
The government has been in the process of regulating the online gaming sector, imposing 28 per cent GST on online gaming activities since October 2023.
(IANS)
