NEW DELHI: The online gaming industry has appealed to the government not to impose a blanket ban on all real money games.
In a letter written to Home Minister Amit Shah, a coalition of India's leading online gaming industry associations and representatives have sounded the alarm over the draft bill that seeks to ban all real money games, including those based on skill.
All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of India Fantasy Sports (FIFS) have collectively urged the minister to intervene, arguing that the proposed legislation would "strike a death knell" for the legitimate industry and cause "serious harm" to Indian users.
The federations argued that the online skill gaming sector is a "sunrise sector" and a key pillar of the Prime Minister's vision for a $1 trillion digital economy. The letter highlights the industry's substantial economic contributions, including an enterprise valuation of over Rs 2 lakh crores, annual revenue of over Rs 31,000 crores, and tax contributions exceeding Rs 20,000 crores. The industry also supports over 2 lakh direct and indirect jobs and has attracted foreign direct investment (FDI) of over 25,000 crores.
The federations warned that a ban would be a misguided and harmful policy. Instead of protecting citizens, they argue, it would drive millions of players away from regulated platforms and toward "illegal matka networks, offshore gambling websites, and fly-by-night operators" that operate without any safeguards or taxation. According to a summary document accompanying the letter, the GST loss from offshore gambling operators alone is conservatively estimated at over $4 billion, which is more than the entire revenue of the legitimate Indian industry. The letter also claims that helping illegal offshore operators would be one of the "biggest national security threats to the Country today".
Furthermore, the document contends that a blanket ban would be unconstitutional, as the Supreme Court and various High Courts have repeatedly ruled over the past 70 years that skill-based games are not gambling. Such a ban, the federations argue, would violate the fundamental right to carry on trade and business guaranteed by Article 19(1)(g) of the Constitution.
Instead of prohibition, the federations are advocating for "progressive regulation". They believe that a clear, transparent framework can ensure user safety, responsible gaming, and tax revenue while allowing the industry to continue its growth. The letter humbly requests an urgent meeting with the Home Minister's office to present their case and offer solutions.