Can Regulation Save India’s ₹31,600 cr Online Gaming Industry? (2025 Analysis)

Summary

The central government passed the Promotion and Regulation of Online Gaming Bill, 2025, targeting Real Money Games (RMGs) to curb addiction and illegal activity. Critics warn of major revenue loss and job cuts across hundreds of startups.

What the Bill Says

The Bill separates eSports and social games from RMGs (which include fantasy sports, rummy, poker). It effectively bans real-money games while encouraging non-monetary digital recreation.

Economic & Job Impact

Industry reports estimate the online gaming market could reach ₹31,600 crore by 2027, with much of revenue driven by RMGs. Industry bodies have warned the ban could shutter 400+ firms and put over two lakh jobs at risk.

Kerala Lottery: A Controlled Model

Kerala's state-run lottery shows how a tightly-regulated model can generate revenue and fund welfare schemes. The state restricts private lotteries and prohibits online ticket sales, channeling proceeds to public schemes.

What the UK Does Differently

The UK levies taxes on gambling revenue and enforces strict KYC, affordability checks, and self-exclusion measures — collecting billions in taxes while funding responsible-gambling programs.

Policy Options for India

• Create a single regulator with clear licensing
• Mandate KYC, affordability checks and ad restrictions
• Consider a Kerala-style state oversight or a UK-inspired tax & treatment model
• Phase regulations to allow business transition and protect jobs

FAQs

Will fantasy sports be affected? Yes — fantasy sports are classified under RMGs in the Bill and face restrictions.

Where can I find official notices? Check the ministry's publications and major news portals for updates.