Gaming bodies urge Amit Shah to intervene against proposed ban on real money games

Industry bodies representing India's online skill-gaming sector have written to Union Home Minister Amit Shah, seeking his "urgent intervention" against a reported draft Bill that proposes to ban all real-money games, including those based on skill.

In a joint letter, the federations warned that such a blanket prohibition would be a "death knell" for the industry, destroying jobs and pushing crores of users towards illegal offshore betting and gambling platforms.

The letter, dated August 19, was sent on behalf of the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS).

The letter stated that the online skill gaming industry is a "sunrise sector" with an enterprise valuation of over Rs 2 lakh crore and annual revenue exceeding Rs 31,000 crore. It contributes over Rs 20,000 crore in direct and indirect taxes annually and is projected to grow at a 20 per cent compound annual growth rate (CAGR), doubling by 2028.

The total number of Indian online gamers grew from 36 crore in 2020 to over 50 crore in 2024, it noted, adding that the industry has attracted Foreign Direct Investment (FDI) of over Rs 25,000 crore till June 2022 and currently supports over two lakh direct and indirect jobs.

"Such a blanket prohibition would strike a death knell for this legitimate, job-creating industry, and would cause serious harm to Indian users and citizens.

“This Bill, if passed, will 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 industry bodies said.

The industry bodies asserted that a ban would also deter global investment and investor sentiment, result in over 400 companies shutting down, and weaken India's position as a digital innovator.

The letter cautioned that instead of protecting people, the Bill risks exposing them to "fraud, exploitation, and unsafe practices," which may end up helping illegal offshore operators.

“Our sector represents not just entertainment, but the creation of an indigenous, future-ready industry at the intersection of emerging technology, creativity, and entrepreneurship. Today, thousands of startups, young engineers, and content creators rely on this ecosystem.

“The only beneficiary of this bill will be the illegal offshore gambling operators. If legitimate Indian businesses are shut down, unregulated actors will fill the vacuum. This will erode state and national tax revenues while leaving Indian users exposed to unregulated platforms,” it added.

Arguing for "progressive regulation and not prohibition," the bodies requested a meeting with the minister to present their case and discuss solutions that would ensure responsible gaming while protecting users and the industry.

The letter was signed by Roland Landers, Chief Executive Officer of AIGF; Joy Bhattacharjya, Director General of FIFS; and Anuraag Saxena, Chief Executive Officer of EGF.