Ban on real money games to curb negative impact on society: Ashwini Vaishnaw

The IT minister said that the government held regular consultation with the gaming industry for almost three years and dismissed claims that the bill was introduced in a hurry

Union minister Ashwini Vaishnaw on Wednesday defended the Centre’s Online Gaming Bill prohibiting all online real money games in the country, saying the government has to prioritise the safety of the society over the demands of businesses. The bill has been cleared by both Houses of Parliament.

In an interview to CNBC-Awaaz, the IT minister said that the government held regular consultation with the gaming industry for almost three years and dismissed claims that the bill was introduced in a hurry.

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Defending the bill, the minister said the government has tried to encourage the good parts of the industry and discourage the segments that could have a negative impact.

“… If you look at the industry, there are three segments - esports, online social gaming and online money gaming. The first two have good social impact and we are trying to encourage them. Online money gaming has harmful impact on the society and for the last few years we were trying to contain it,” Vaishnaw told CNBC-Awaaz.

“This bill was required because the impact these games were having on the society has reached a significant level. Several families have lost their life’s earnings and, in many cases, people are committing suicides due to mounting debt. Therefore, this bill needs to be taken forward," he added.

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Vaishnaw clarified that it was not about game of luck vs game of skill. Rather, it was a case of prioritizing society’s wellbeing above everything else.

“We have been in constant dialogue with the industry’s stakeholders for a long time… we have received feedback from the society about the negative impact. When we balance the needs of our society, youths and the middle class against an industry’s demands, we will always give primary importance to the society,” he said.

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The minster added the new bill provides legal mechanism for the recognition of esports that provides opportunity for commercialization.

“We have clearly defined esports in the bill and recently the national sports governance act was passed in the Parliament and in that we have created a legal mechanism for recognition of esports. Through this bill esports will get legal recognition and it can be commercialized later,” he told the channel.

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Fears of job losses

The gaming industry has termed the bill as a “death knell”, saying it will lead to job cuts and major losses for the companies involved. However, Vaishnaw said the government is committed to turning India into a gaming hub and various institutes are involved in channelizing innovations for employment generation.

“But if there is something that can hurt the society, for example drugs, the government will always take steps to curb such activities.”

Vaishnaw did not give any details on the timeline of the implementation of the bill or whether the companies will be provided any opportunity to change the nature of their games.

“Let’s see. Let the bill be passed,” he had said earlier.

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The Promotion and Regulation of Online Gaming Bill, 2025 was passed by the Union Cabinet on August 19 and was later passed in the Lok Sabha on August 20. The Bill was cleared by Rajya Sabha on August 21.

The gaming industry said a ban on the real gaming business could deliver a $25-billion setback and hit direct and indirect employment of 200,000 people.

Moreover, the move could push people more towards illegal gaming platforms and undermine national digital security. According to the industry, the government loses out on GST revenues of over $4 billion from offshore betting platforms, higher than $3.5 billion that the domestic business generates.

The real money gaming industry contributes Rs 25,000 crore in taxes to the exchequer annually, the industry said.

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