The Indian government has tabled a bill in the Lok Sabha to regulate online gaming. The primary focus is on promoting and regulating online games, with specific measures aimed at banning money-related gaming and its advertisements. The bill outlines potential penalties including imprisonment and fines for those who offer or advertise such games. E-sports and online social games are distinguished from the money-related games. Those who violate the rules of the bill for providing online money gaming services face a possible three-year prison sentence, a fine of up to one crore rupees, or both. Advertisers who do not follow the guidelines might be penalized with up to two years in prison, and a fine of up to 50 lakh rupees, or both. Individuals engaged in related transactions are also subject to imprisonment, along with fines. Repeat offenses for money gaming may result in more severe penalties. The legislation aims to regulate online gaming by encouraging online social games and e-sports and by preventing the use of online money gaming for illicit activities. The industry is facing potential upheaval, with companies such as Dream11, facing potential challenges. The Indian online gaming market is currently valued at $3.7 billion and is projected to reach $9.1 billion by 2029. The All India Gaming Federation (AIGF) has expressed concerns and requested intervention from the Home Minister. The Indian gaming market is estimated to be worth ₹31,938 crore in 2024. Real Money Gaming (RMG) accounts for a significant portion of the revenue, estimated at ₹27,438 crore in 2024. Over 45 crore Indians are active online gamers. The sector’s current value is $25 billion, with an annual tax contribution exceeding ₹25,000 crore. The online gaming sector provides jobs for over 2 lakh individuals and attracts ₹25,000 crore in FDI. A ban could lead to an annual tax loss of ₹20,000 crore. The industry spends ₹6,000 crore annually on marketing and technology. India has over 1100 gaming companies, including over 400 startups. A recent study highlighted that 58% of women spend considerable time gaming weekly, while the figure for men is 74%. The study showed that 54% of women in North India engage in serious gaming, compared to 74% in West India.
