What was once India’s fastest-growing digital entertainment sector is now at a crossroads. The Union Cabinet has cleared the Online Gaming Bill, setting the stage for a sweeping overhaul that promises a boost for esports, while real-money platforms like Dream11, Games24x7, Winzo, and more — the giants of India’s online gaming boom — face a crippling existential crisis.
What the bill really is
The bill seeks to regulate online gaming platforms and curb the surge in illegal betting activities. Sparked by fraud cases linked to betting apps and celebrity promotions, the draft law aims to bring the entire space under a structured legal framework.
If passed, it would ban all money-based online games — whether based on skill or chance — outlaw advertisements for such platforms, and block banks and financial institutions from processing transactions. Violators could face up to three years in jail and fines, according to the draft.
Big names like Dream11, Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle are among those directly affected.
The impact on real-money gaming
India’s online gaming industry, valued at $3.7 billion today and projected to touch $9.1 billion by 2029, depends overwhelmingly on real-money games. Nearly 86% of its current revenue comes from RMG formats. The bill could erase that lifeline, leaving the sector staring at a collapse.
Industry estimates peg the current enterprise valuation at over Rs. 2 lakh crores, with Rs. 31,000 crores in annual revenue and Rs. 20,000 crores in direct and indirect taxes. Growing at a 20% CAGR, it was on track to double by 2028 — a forecast now under severe threat.
What people in favour of the bill are saying
Esports stakeholders have hailed the move as a much-needed separation between gaming and betting.
“This bill marks a historic turning point for Indian esports. By drawing a clear line between skill-based competitive gaming and betting, it safeguards the integrity of our ecosystem while opening doors for structured growth. Esports is a sport- built on skill, discipline and years of grind. With government recognition and the right infrastructure, India is now poised to become a global powerhouse in esports and gaming culture,” said Animesh ‘Thug’ Agarwal, Co-founder, S8UL.
Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, stressed the importance of clarity:
“The government’s intent to recognize and promote esports, as highlighted in the recent bill, is an encouraging step towards building a structured and globally competitive ecosystem. However, for this vision to truly materialize, it is critical that the terminology used in the bill, particularly the distinctions between esports, online gaming, online social gaming, and online money gaming be clearly defined and uniformly understood.”
What the AIGF has said
The All India Gaming Federation (AIGF) has strongly opposed the bill, warning of catastrophic fallout for the industry if implemented as is.
“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. 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. 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 statement said.
The passage of the Online Gaming Bill could reshape India’s digital entertainment landscape overnight. On one side, esports professionals see an opportunity for recognition, structure, and global competitiveness. On the other, the real-money gaming sector — which powers most of the industry’s revenues — faces an existential crisis. With billions in market value, jobs, and tax contributions at stake, the coming weeks will decide whether this becomes a story of growth through regulation or collapse through prohibition.
