The Indian government recently introduced a bill in the Lok Sabha aimed at regulating online gaming. The ‘Online Gaming Promotion and Regulation Bill’ proposes to ban online gaming related to money or its advertisement, with penalties including imprisonment and fines for those who offer or advertise such games. The bill differentiates these games from e-sports and online social games, promoting the latter. Violators of the bill’s provisions for offering online money gaming services may face up to three years in prison, a fine of up to one crore rupees, or both. Advertisers who violate the rules may be imprisoned for up to two years and/or fined up to 50 lakh rupees. Those involved in transactions related to online money gaming could face similar penalties. Repeat offenses related to online money gaming could result in stricter penalties, including imprisonment of 3-5 years and fines. The objective of the bill is to regulate online gaming by promoting online social games and e-sports while prohibiting money-related online gaming in the public interest, due to its use in money laundering and other illegal activities. Leading players in the market, like Dream11 and others, are now facing potential challenges. The Indian online gaming market is currently valued at $3.7 billion and is projected to more than double to $9.1 billion by 2029. The All India Gaming Federation (AIGF) has appealed to the Home Minister, expressing concerns that a complete ban could severely harm the industry. The current size of the Indian gaming market is estimated at ₹31,938 crore. Real Money Gaming (RMG) plays a significant role, accounting for approximately 85.7% of the total revenue, or ₹27,438 crore, in 2024. More than 45 crore Indians play online games. The sector is currently valued at $25 billion and contributes over ₹25,000 crore in taxes annually. The online gaming sector employs over 2 lakh people, with ₹25,000 crore in FDI flowing into the industry. A complete ban could result in an annual tax loss of ₹20,000 crore for the government. Approximately ₹6,000 crore is spent annually on promotion and technology. There are over 1100 gaming companies in the country, including over 400 startups. A 2023 HP Gaming Landscape Study surveyed 3,000 gamers across 15 cities, revealing that 58% of women spend up to 12 hours per week on gaming, while the figure for men is 74%. In North India, 54% of women are engaged in serious gaming, compared to 74% in West India.
