I could sense the alarm in his voice. He heads one of the leading fantasy companies in the country and the Online Gaming Bill could be a potential death knell for the industry. “People are withdrawing monies every second,” he said. It is much like the closure of a bank. If a bank is collapsing for example the first instinct is to withdraw money and safeguard oneself. Save yourself first is always the immediate step. That’s what is happening with real money gaming all set to be banned in the country.
“All these domestic leagues, sports properties and clubs who get sponsorship from these companies will get impacted. Just navigate the landscape and you know that almost all of these domestic leagues are run with real money gaming funds. Once the monies stop, how will these companies invest? They will all shrink and it will have a cascading effect,” said an industry insider on condition of anonymity.
With the Bill already passed in the Lok Sabha and expected to be passed in the Rajya Sabha on Thursday, there is a sense of resignation all round. While the industry had written to the Shri Amit Shah for direct intervention, nothing has happened so far.
“How can anyone intervene? The Bill has been passed in the Lok Sabha. It will be passed in the Rajya Sabha. And then it is only natural that the President will give her consent and it will become an Act. I don’t see it getting stalled or anything tangible changing,” said a legal luminary following the Bill closely.
Sports sponsorship, it is certain, will get adversely impacted. Take cricket as an example. Every cricketer endorses some fantasy gaming app or the other and every league, from international ones like the Big Bash to local T-20 leagues, all use gaming money. Under pressure, these sponsorships will first get cut and there could be a spiralling effect on all these properties.
“BCCI will find a way. Even if the Indian team jersey partnership has to change, they will figure it out. There are takers. But what about the smaller properties and other sports. They were all being funded by these companies. Such things will come to a standstill,” said another industry insider.
While the subscription model will still be allowed, industry revenue is expected to shrink by 80-90 percent. “The companies don’t become illegal. They can’t continue with real money gaming. That’s the part which becomes illegal. The moot point is real money gaming was the pivot. That’s where the money is. And all that money will now be lost,” explained the legal eagle.
So what’s the future? “There is a problem," said the fantasy company owner. “We will have to pivot to some other business but it isn’t going to be easy. More than a few lakh people stand to lose their jobs and the losses could be in the tune of thousands of crores.”
While the industry said that more consultation was needed before bringing the bill, the negative social impact of this industry on the country cannot be denied either. That’s what the Bill says and that’s the underlying principle. The industry is watching. And the alarm bells are ringing.
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