A new bill has been introduced in the Lok Sabha by the central government to regulate the online gaming industry in India. The bill, titled ‘Online Gaming Promotion and Regulation Bill,’ aims to curb money-related online gaming and its advertising. Penalties for non-compliance include imprisonment or fines, or both, for those who offer or advertise such games. The bill distinguishes between these games and e-sports and online social games. The bill proposes that anyone found providing online money gaming services in violation of the specified provisions could face up to three years in jail or a fine of up to one crore rupees, or both. Advertisers who violate the rules could face a prison sentence of up to two years and/or a fine of up to 50 lakh rupees. Additionally, individuals involved in any type of transaction related to online money gaming could face imprisonment of up to three years or a fine of up to one crore rupees, or both. For repeated violations related to online money gaming, there could be stricter imprisonment (3-5 years) and fines. The aim of the bill is to regulate online gaming by promoting online social games and e-sports, and in the public interest, to ban online money gaming. This is due to its use in money laundering and other illegal activities. Dream11, Games24x7, WinZO, Gameskraft, 99Games, KheloFantasy, and My11Circle, which are major players in the market, now face a crisis. The Indian online gaming market is currently valued at $3.7 billion and is estimated to more than double to $9.1 billion by 2029. The All India Gaming Federation (AIGF) has written to the Home Minister, requesting immediate intervention regarding the bill, stating that a complete ban could seriously harm the sector. One industry insider stated that the government’s approach is misleading and could cause more harm than good. The Indian gaming market is currently valued at ₹31,938 crore, with Real Money Gaming (RMG) playing a major role. RMG alone is expected to generate approximately 85.7%, or ₹27,438 crore, of the total revenue in 2024. Over 45 crore Indians play online games. The sector is valued at $25 billion and contributes over ₹25,000 crore in taxes annually. Over 2 lakh people are employed in the online gaming sector. FDI of ₹25,000 crore comes into this industry. A ban could lead to an annual tax loss of ₹20,000 crore for the government. Approximately ₹6,000 crore is spent on promotion and technology every year. There are over 1100 gaming companies in the country, including over 400 startups. A gaming landscape study from HP in 2023 reported on a survey of 3,000 gamers across 15 cities. The survey revealed that 58% of women spend up to 12 hours a week on gaming. The figure for men is 74%. In North India, 54% of women are engaged in serious gaming, while 74% of women in West India are.
