In a letter, All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS) said: “Such a blanket prohibition would strike a death knell for this legitimate, job-creating industry, and would cause serious harm to Indian users and citizens.” Further, it said that the Bill, if passed, will cause serious harm to Indian users and citizens. 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. 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 said.

Economic and employment significance

According to industry bodies, online skill gaming is a sunrise sector with an enterprise valuation of over ₹2 lakh crore, over ₹31,000 crore in revenue, over ₹20,000 crores in annual direct and indirect taxes, and is set to grow by 20 per cent CAGR to reach even greater heights and double by 2028. The total number of Indian online gamers grew from 36 crores in 2020 to over 50 crores in 2024. India’s gaming industry attracted FDI of over 25,000 crores till June 2022. The industry currently supports over 2 lakh direct and indirect jobs, and these numbers are expected to grow substantially in the next few years.

“The only beneficiary of this bill will be the illegal offshore gambling operators. If legitimate Indian businesses are shut down, unregulated actors will fill the vacuum. This will erode state and national tax revenues while leaving Indian users exposed to unregulated platforms,” the letter said while requesting urgent intervention and seeking an opportunity to present our case, along with solutions that ensure responsible gaming while protecting users.

“We firmly believe that progressive regulation and not prohibition is the way forward for the legitimate Indian industry. With your guidance, India can set a global example by building a safe, transparent, and thriving digital gaming ecosystem,” the letter said.

Published on August 20, 2025