With India’s Promotion and Regulation of Online Gaming Bill, 2025 now passed, the fallout is already echoing across the gaming and digital economy sectors. Far from being merely regulatory, industry players warn of a looming crisis—one that threatens livelihoods, innovation, and economic growth.
Job Losses & Business Shutdowns
Industry bodies and companies alike have raised the alarm.The All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) warn that a blanket ban could erase over 200,000 jobs and shutter 400+ gaming firms.Earlier estimates included around 20,000 jobs and 300 closures, reflecting the escalating severity of the situation.
Economic Fallout & FDI Threats
The economic stakes are equally high. The industry contributes ₹20,000–₹31,000 crore in annual revenue and taxes, and the ban could wipe out ₹20,000 crore in GST collections. Foreign investors have poured ₹25,000 crore into this burgeoning sector.
Shift to Offshore Platforms & National Security Risks
Stakeholders are predicting a dangerous migration. A blanket ban risks pushing millions to offshore and unregulated platforms, stripping consumer safety, legal oversight, and accountability. Citing other global markets, industry leaders argue India needs progressive regulation, not outright prohibition.
Investor Confidence Takes a Hit
Market reaction was swift. Stocks like Nazara Technologies plunged 11% in one day, extending to a double-digit slide overall. The Industry calls the bill a potential “death knell” for Indian gaming.
Industry Pleas for Reconsideration
In a last-ditch bid, gaming bodies have written to Home Minister Amit Shah, urging a re-think and calling for differentiated regulation instead of a ban. Critics argue the bill conflates regulated, skill-based platforms with predatory gambling models. PwC projects the sector could double to ₹66,000 crore (~$8.6 billion) by 2028, highlighting lost potential if the ban stands.
Bottom Line
The Online Gaming Bill, conceived to curb risks, now threatens to derail India’s digital growth story. Without nuanced, tech-savvy regulation, the government risks not only financial disruption but also forfeiting India’s position as a global gaming powerhouse.
