People lose Rs 20,000 crore per year in online gaming: Data

NEW DELHI: Much against the arguments put forth by gaming companies against the ban on real-money gaming, the government estimates that around 45 crore people lose close to Rs 20,000 crore every year in online real-money gaming, according to data provided by an official source on Wednesday.

The source said the government believes that online real-money gaming is turning into a "major problem for society," and decided to prioritise people's welfare over the revenue loss it will suffer on account of the ban. "There is a rough estimate that 45 crore people lose money every year. Total impact of the loss is estimated to be around Rs 20,000 crore," the source said, on a day when the Promotion and Regulation of Online Gaming Bill, 2025 was tabled and passed in the Lok Sabha.

"Every parliamentarian has raised concerns about the ill effects of online gaming involving money. Between revenue from one-third of the industry segment and social welfare, the government has chosen welfare of society," the source said.

The bill proposes to promote e-sports and online social gaming while banning money gaming in any form. "There will be a budget for it, and schemes and authority for their promotion. They comprise two-thirds of the industry. It will create job opportunities for the online gaming industry," the source said.

Action under the bill against entities involved in money gaming will be taken mainly by state govts.

Any person offering an online money gaming service in violation of stipulated provisions will face imprisonment of up to three years or a fine that may extend to Rs 1 crore, or both. The provisions also stipulate imprisonment of up to two years and/or a fine of up to Rs 50 lakh, or both, for those putting out advertisements in contravention of rules.

Several online real-money gaming platforms "masquerade as game of skills" entities to differentiate themselves from gambling or betting, the source said. "Those who play the games are victims. They will not be punished as per the bill, but there will be action against those who provide real-money gaming platforms, facilitate transaction services, etc," the source said.

The government has been making efforts for the last three-and-a-half years, which were being bypassed by the real-money gaming players.

"Government tried to check it through GST, but it was being bypassed. There was a proposal for a regulatory body, but that was impacted by a conflict of interest. The provisions under the bill were drafted after several complaints were received from the public and their representatives," the source said.