Online games industry bodies have sought Union home minister Amit Shah’s “urgent intervention” against the Promotion and Regulation of Online Gaming Bill 2025 that proposes to ban all real-money games, including those based on skill.

The All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) have written a joint letter to Shah warning that such a blanket prohibition would be a "death knell" for the industry, destroy jobs and push crores of users towards illegal offshore betting and gambling platforms.

The letter was sent on Tuesday.

The 13-page bill, which has not yet been made public but has been reviewed by Reuters, describes an online money game as one played by a user by depositing money in expectation of winning monetary and other enrichment.

The bill says that no person "shall offer, aid, abet, induce or otherwise indulge or engage in" the offering of online money games and such services.

The letter to Shah from the industry bodies said that the online skill gaming industry is a "sunrise sector" with an enterprise valuation of over Rs 2 lakh crore and annual revenue exceeding Rs 31,000 crore.

It contributes over Rs 20,000 crore in direct and indirect taxes annually and is projected to grow at a 20 per cent compound annual growth rate (CAGR), doubling by 2028.

The total number of Indian online gamers grew from 36 crore in 2020 to over 50 crore in 2024, it noted, adding that the industry has attracted Foreign Direct Investment (FDI) of over Rs 25,000 crore till June 2022 and currently supports over two lakh direct and indirect jobs.

"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,” the letter said.

“This Bill, if passed, will cause serious harm to Indian users and citizens. By shutting down regulated and responsible Indian platforms, it will drive crores of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without any safeguards, consumer protections, or taxation.”

The industry bodies asserted that a ban would also deter global investment and investor sentiment, result in over 400 companies shutting down, and weaken India's position as a digital innovator.

The letter cautioned that instead of protecting people, the Bill risks exposing them to "fraud, exploitation, and unsafe practices," which may end up helping illegal offshore operators.

“Our sector represents not just entertainment, but the creation of an indigenous, future-ready industry at the intersection of emerging technology, creativity, and entrepreneurship. Today, thousands of startups, young engineers, and content creators rely on this ecosystem.

“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,” it added.

Arguing for "progressive regulation and not prohibition," the bodies requested a meeting with the minister to present their case and discuss solutions that would ensure responsible gaming while protecting users and the industry.

The letter was signed by Roland Landers, CEO of AIGF; Joy Bhattacharjya, director general of FIFS; and Anuraag Saxena, CEO, EGF.

Endorsements by top Indian cricketers and other marketing efforts have boosted appeal and investor interest of real money gaming apps such as the popular fantasy cricket games operated by startups Dream11 and Mobile Premier League.

Dream11 commands a valuation of $8 billion while Mobile Premier League is valued at $2.5 billion, PitchBook data show.

In fantasy cricket games on Dream11, users create their teams by paying as little as Rs 8 rupees with a total prize pool of Rs 12 lakh.

The apps become more popular during the Indian Premier League season.

The bill states that anyone who offers such money games could face a jail term of up to three years and a fine. "Such games often use manipulative design features, addictive algorithms ... while promoting compulsive behaviour leading to financial ruin," the bill says.