The 'Promotion and Regulation of Online Gaming Bill 2025', which was tabled in Lok Sabha, seeking to ban money gaming in any form, by making them punishable with imprisonment of up to three years or a fine that may extend to Rs 1 crore or both, is set to adversely affect payment aggregators who would lose business, and lead to job losses.Â
India embraces the positive power of gaming! 🇮🇳
— Ministry of Information and Broadcasting (@MIB_India) August 20, 2025
The Online Gaming Bill, 2025 aims to boost eSports and social gaming — while taking a firm stand against harmful money gaming practices.
A bold move for a safer, smarter gaming future! pic.twitter.com/mzmnCOK4Lq
Gaming companies and online gaming merchants depend on multiple aggregators like Razorpay, Cashfree, PhonePe, Easebuzz and PayU, among others, for transactions. According to a Moneycontrol report, most of such aggregator firms are expected to be impacted by the ban on games like Dream11, My11Circle, KheloFantasy, MPL (Mobile Premier League), Games24x7, PokerBaazi, Rummy, Classic Rummy Winzo, Zupee, GamesKraft, Parimatch, Head Digital Works, and 99Games.
The Promotion and Regulation of Online Gaming Bill, 2025 is here to boost innovation & protect citizens!
— Ministry of Information and Broadcasting (@MIB_India) August 20, 2025
The Bill encourages e-sports & online social games while prohibiting harmful online money gaming services, advertisements & financial transactions related to them.… pic.twitter.com/TyMphGFeIt
Sources have been quoted as saying that the online gaming industry contributes to nearly 10 per cent of the annual revenue of some of the payment aggregators.
The Times of India quoted industry experts as saying that nearly two lakh jobs in 400 companies, and investment of Rs 25,000 crore are at risk due to the ban. An annual GST contribution of Rs 20,000 crore too would be impacted.
It has been pointed out that several startups, engineers, and content creators depend on the online gaming ecosystem for their livelihoods.
The ban would "destroy over 2 lakh jobs, result in over 400 companies shutting down, and weaken India's position as a digital innovator," All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS) said in a joint letter to the government.
According to them, the bill would be the "death knell" for a legitimate, fast-growing sector, reports news agency ANI.
They claimed that the online skill gaming is a sunrise sector which has an enterprise valuation of over Rs 2 lakh crore.Â
"Sir, on behalf of the millions of young entrepreneurs, developers, and professionals working in India's sunrise digital skill gaming sector, we write to you with the deepest respect and gravest concern regarding the news reports about the draft bill that seeks to ban all real money games, including those based on skill," the industry bodies noted.
