Gaming bodies seek Amit Shah's intervention to stop RMG ban in India

Gaming associations warn that banning real-money games could shut 400 firms, endanger 2 lakh jobs, reduce tax revenue, and push users to offshore gambling operators

In a joint letter, online skill gaming associations have sought Home Minister Amit Shah’s intervention against a proposed Bill seeking to ban all forms of real-money games (RMGs) in India, warning that the move could force over 400 companies to shut down and put more than 200,000 jobs at risk. 

Industry bodies — the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) — said a blanket prohibition on the platforms would “strike a death knell” for the industry.

 

The bodies have requested a meeting with the Home Minister’s office.

 

They cautioned that a blanket ban could drive millions of Indian users to offshore entities, fly-by-night operators, and matka networks — platforms that operate outside any legal framework, lack safeguards, and are prone to unsafe practices.

   

The proposal to impose an absolute prohibition on such platforms comes at a time when there are close to 500 million gamers in India, with the sector having attracted foreign direct investment (FDI) of more than Rs 25,000 crore, as per industry estimates.

 

Major companies in the sector include Dream11, Games24x7, Junglee Games, Mobile Premier League (MPL), Head Digital Works, Zupee, Gameskraft, and Nazara Technologies, among others.

 

“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 joint letter said.

 

They added that online skill gaming could contribute to Prime Minister Narendra Modi’s vision of a $1-trillion digital economy.

 

The government has finalised a draft legislation to ban all forms of online RMG in India and will introduce it in Parliament on Wednesday.

 

The draft Bill, cleared by the Union Cabinet on Tuesday, is likely to bar “offering, aiding, abetting, inducing, or otherwise in the offering of any online money gaming service” and declares it an offence.

 

Aimed at curbing the sharp spike in online gaming addiction among children and youth, which has triggered mental health issues and financial losses, the Bill also bans any person and advertisement from promoting online money games.

 

Furthermore, the draft Bill proposes that banks, financial institutions, or any other person should not facilitate transactions related to online real-money games.