The government’s upcoming Promotion and Regulation of Online Gaming Bill, 2025 could wipe out as much as ₹20,000–₹22,000 crore in annual tax revenues, sources told CNBC-TV18. The bill, expected to be tabled in Parliament soon, seeks to prohibit online real money games entirely, an industry that contributed significantly to GST and TDS collections in FY25.Revenue at risk
According to sources, the online gaming industry paid ₹20,000–₹22,000 crore in tax revenues last fiscal (FY25). This included:
₹15,000–₹18,000 crore from GST, and
₹3,000–₹4,000 crore from TDS.
A complete ban could erase this entire revenue stream, dealing a blow to government finances at a time when tax buoyancy is critical.What the bill proposesAlso Read: Online Gaming Bill 2025 proposes ban on online money games, heavy penalties for violations
The bill is expected to introduce sweeping prohibitions aimed at curbing online real money gaming. Key provisions include:
Ban on offering online money games.
Ban on advertising such games.
Ban on fund transfers to gaming platforms.
The legislation is likely to define “online money games” broadly as any game, whether of skill or chance, played by paying fees or depositing money.Heavy penalties proposedThe draft bill proposes stiff penalties for violations:
Hosting online real money games – jail term up to 3 years and fine of ₹1 crore.
Advertising such games – jail term up to 2 years and fine of ₹50 lakh.
Facilitating financial transactions – jail term up to 3 years and fine of ₹1 crore.
Industry impactIndia’s online gaming sector has been one of the fastest-growing segments of the digital economy, creating jobs in technology, marketing, and fintech. A blanket ban, without differentiating between games of skill and chance—may not only jeopardise employment but also push players towards offshore or illegal platforms, experts fear.While the government is prioritising consumer protection, addiction risks, and prevention of financial losses, the move could reignite debate over whether regulation, rather than prohibition, would serve India’s interests better.(Edited by : Sheersh Kapoor)
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