Skill gaming bodies write to Amit Shah to stop real-money gaming ban, warn of large-scale job and investment risks

Real-money gaming

India’s online skill-gaming sector has urged Home Minister Amit Shah to intervene against a proposed bill that seeks to ban all real-money games (RMG), warning it would devastate a fast-growing industry, kill over 200,000 jobs and drive users to unregulated offshore platforms.

In a joint appeal, three leading industry bodies - the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) - said the blanket ban risks undermining Prime Minister Narendra Modi’s vision for a $1 trillion digital economy.

In a letter dated August 19, the skill gaming industry bodies said the proposed legislation, if enacted, would “strike a death knell” for the legitimate, regulated online gaming industry in India. Moneycontrol has viewed a copy of the letter.

AIGF has over 120 members that include companies such as Mobile Premier League (MPL), Nazara Technologies, Gameskraft, Zupee, and Head Digital Works (A23). Meanwhile, EGF represents the country's top rummy and poker operators such as Games24x7, Junglee Games, Head Digital Works, while FIFS counts fantasy sports major Dream11 as its founding member.

The sector has three unicorns: Dream11, Games24x7, and MPL. It is also one of the few sectors in India's digital economy with multiple companies generating sizeable profits.

India's online gaming bill

This move comes as the government looks to table an online gaming bill, called Promotion and Regulation of Online Gaming Bill 2025, in the Lok Sabha on August 20 after it received the Union Cabinet nod on August 19.

The bill "prohibits" offering, aiding, abetting, inducing online money games and online money gaming services. Online money game is defined as an online game, irrespective of whether it is based on skill or chance that is played by paying a fee, depositing money or other stakes in expectation of winning in return of money or other stakes.

"India has the unique opportunity to lead the world in gaming, technology, and digital entertainment. Our sector represents not just entertainment, but the creation of an indigenous, future-ready industry at the intersection of emerging technology, creativity, and entrepreneurship," the letter stated.

The Bill, if passed, will cause serious harm to Indian users and citizens, it mentioned "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" it stated.

"Instead of protecting people, this Bill risks exposing them to fraud, exploitation, and unsafe practices may end up helping illegal offshore operators which is one of the biggest national security threats to the country today" the letter stated.

Online skill gaming has generated over Rs 31,000 crores in revenue, and has contributed over Rs 20,000 crores in annual direct and indirect faxes. The sector is set to grow by 20 percent CAGR and double by 2028, as per the letter.

RMG apps accounts for the bulk of revenues of India's overall gaming industry which is estimated to cross $9.2 billion in revenue by FY29 at a 20 percent CAGR over the next five years.