The Indian stock market witnessed early tremors today as shares of Nazara Technologies and Delta Corp declined sharply following the Union Cabinet’s nod to the Online Gaming Regulation Bill, 2025. Nazara Tech dropped over 6% intraday, while Delta Corp slipped more than 4%, reflecting investor fears about the future of real-money gaming in India.
The proposed bill, which is expected to be introduced in Parliament later today, calls for a nationwide ban on online games involving financial stakes—even those that rely on player skill rather than chance.
What the Bill Proposes
The Online Gaming Bill, 2025, to be tabled by Electronics and IT Minister Ashwini Vaishnaw, seeks to establish a centralized legal framework for digital gaming. However, a controversial clause calls for banning all forms of real-money gaming—without distinguishing between games of skill and chance.
This sweeping approach has sparked backlash across the gaming ecosystem, with stakeholders warning of severe consequences for the industry, jobs, and innovation.
Industry Reacts: ‘This Could Break a Thriving Sector’
Industry groups including the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of India Fantasy Sports (FIFS) have publicly criticized the bill. In a joint statement, they warned that over 2 lakh jobs are at risk and more than 400 gaming startups could shut down if the legislation passes in its current form.
“This bill could wipe out a regulated industry, forcing users toward illegal, offshore gambling websites and underground betting apps,” the statement read.
Economic Impact Could Be Severe
India’s online gaming sector has grown at a rapid pace—clocking a compound annual growth rate of 20% between 2020 and 2024. The number of gamers surged from 360 million in 2020 to over 500 million by 2024.
Industry estimates suggest the sector’s valuation has crossed ₹2 lakh crore, with annual revenues of ₹31,000 crore and tax contributions exceeding ₹20,000 crore. The sector has also drawn ₹25,000 crore in foreign direct investment (FDI) in recent years.
Fears of a Surge in Illegal Gaming
In a letter to the Union Home Minister, industry associations cautioned that banning Indian platforms could unintentionally promote illegal operators.
“Without legal alternatives, users may turn to unregulated and risky websites that operate outside Indian jurisdiction, leading to greater consumer harm and loss of government oversight,” the letter warned.
Looking Ahead: Sector Braces for Turbulence
While the government’s intent is to regulate online gaming and curb illegal gambling, many argue that a blanket ban is not the solution. Critics urge a more nuanced framework that differentiates between games of skill and chance, promotes responsible gaming, and safeguards both consumers and legal businesses.
As the bill heads to the Lok Sabha, uncertainty looms over the fate of a digital sector once seen as a sunrise industry. For now, the market has responded with caution—and possibly, a glimpse of what’s to come.
