Priyank Kharge slams Centre’s Online Gaming Bill, calls for regulation over blanket ban

Karnataka IT-BT minister Priyank Kharge

Karnataka Information Technology & Biotechnology minister Priyank Kharge has slammed the Centre’s Online Gaming Bill, warning that a blanket ban will result in revenue loss, encourage illegal markets, and set back innovation in India’s growing digital sector.

Posting his views on social media platform X, Kharge wrote, “Knee-jerk blanket ban on Online Real Money Gaming without consulting stakeholders or states is another masterstroke by Modi Sarkar in bad policy making. A ban kills India’s gaming talent pool and pushes entrepreneurs abroad.”

Also, read: Online Gaming Bill: Proposed clampdown may put 2 lakh jobs at risk, lead to loss of Rs 20,000cr in tax revenue

The draft Promotion and Regulation of Online Gaming Bill, cleared by the Union Cabinet on Tuesday, prohibits online money gaming and related advertisements. The draft law prescribes penalties including imprisonment or fines. Those offering such services could face up to three years in jail or a fine of up to Rs 1 crore, while advertising them may attract a two-year jail term or a fine of up to Rs 50 lakh.

The Karnataka minister warned that the move will have significant economic and social consequences. He pointed out that India currently earns around Rs 20,000 crore annually from GST and income tax through online real money gaming.

“A ban means states will lose this revenue stream,” he said, adding that the sector supports over 2,000 gaming start-ups and more than two lakh jobs across IT, AI and design. The minister also noted that India has attracted Rs 23,000 crore in foreign direct investment over the last five years, which could dry up if the government shuts down the industry.

He further argued that the ecosystem built around the industry- worth nearly Rs 7,000 crore annually in advertising, data centres, sponsorships and cyber security- would collapse overnight.

According to Kharge, bans fail to address concerns of addiction or suicides, instead driving users to unregulated offshore platforms, estimated to be worth Rs 8.2 lakh crore annually. “These platforms remain outside government oversight, creating risks of money laundering, terror financing and data theft. Even the FATF and Rashtriya Raksha University have flagged such dangers,” he said.

He also questioned the timing of the bill, pointing out that the Supreme Court is still examining whether the Centre or states have jurisdiction over online gaming. “Why the rush to ban now? The solution isn’t prohibition,” he said.

Kharge advocated for a framework that regulates skill-based platforms, enforces existing IT Rules, 2021, and whitelists legitimate operators. He said a well-balanced regulatory approach would protect jobs, ensure revenue, safeguard users, strengthen national security and encourage global innovation.

“A blanket ban will not only lead to revenue loss, but will give rise to illegal markets that threaten national security. Regulation is the way forward,” the Congress leader said.