Online Gaming Bill Tabled in Lok Sabha: Betting Banned, E-Sports Recognized

Union Minister Ashwini Vaishnaw on Wednesday introduced the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha. The draft legislation seeks to encourage e-sports and social online games while imposing a complete ban on betting and gambling activities, including poker, rummy, lotteries, and fantasy sports involving money.

The bill proposes the setting up of a central authority that will act as the nodal agency for the domestic gaming sector. This authority would frame uniform rules, coordinate policy support, and monitor financial and legal compliance.

The central government, while introducing the bill, stated that the move is aimed at protecting young and vulnerable users from the social, financial and psychological risks of online betting, while ensuring digital platforms “operate responsibly”.

In recent years, the government has already brought stricter tax measures for the industry. A 30% tax on net winnings from online games came into effect in FY25, while a 28% GST on money-based online games has been applicable since October 2023. Offshore gaming companies too have been brought under the indirect tax framework to prevent revenue leakage.

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However, the proposal for a blanket ban has triggered pushback from the industry. Leading associations — the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of India Fantasy Sports (FIFS) — have written to Union Home Minister Amit Shah, asking for his intervention.

The groups argue that prohibiting all money-based games would deal a severe blow to India’s fast-growing skill-gaming sector, which is valued at about Rs 2 lakh crore. The industry today generates more than Rs 31,000 crore in revenues, contributes over Rs 20,000 crore in taxes, and provides jobs to over 2 lakh people. It has also drawn around Rs 25,000 crore in foreign investment and continues to grow at a healthy pace, with its valuation expected to double by 2028, as per research reports. 

Meanwhile, industry leaders have urged the government to opt for regulation instead of prohibition. They believe that with appropriate safeguards, India has the opportunity to become a global hub for gaming and digital entertainment, while ensuring user safety and transparency.