Online Gaming Bill Sparks Uncertainty for Dream11, Winzo and Others
India’s booming online gaming industry once hailed as the country’s fastest-growing digital entertainment sector is staring at its biggest shake-up yet. The Union Cabinet has cleared the Online Gaming Bill, a move that could transform the industry overnight.
While the proposed law promises structured growth for esports in India, real-money gaming (RMG) platforms like Dream11, Games24x7, Winzo, My11Circle, and others are facing an existential crisis.
What the Online Gaming Bill Proposes
The draft Online Gaming Bill aims to regulate digital gaming platforms and clamp down on illegal betting apps that have flourished in recent years. Triggered by rising fraud cases and celebrity-backed betting promotions, the bill seeks to bring the sector under a legal framework.
If passed, the bill would:
- Ban all money-based online games including those based on skill or chance.
- Prohibit advertisements for such platforms.
- Restrict banks and financial institutions from processing gaming transactions.
- Impose penalties of up to three years in jail and hefty fines for violations.
The sweeping ban directly threatens market leaders like Dream11, Games24x7, Winzo, GamesKraft, 99Games, and KheloFantasy.
The Bill’s Impact on India’s $3.7 Billion Industry
India’s online gaming industry is currently valued at $3.7 billion and projected to grow to $9.1 billion by 2029. However, nearly 86% of revenues come from real-money gaming formats.
Industry figures show:
- Enterprise valuation: Over ₹2 lakh crore
- Annual revenue: ₹31,000 crore
- Direct & indirect taxes: ₹20,000 crore
- Growth rate: 20% CAGR, set to double by 2028 before the bill’s intervention
Experts warn that the ban could wipe out the sector’s biggest revenue stream, threatening jobs, tax contributions, and investment.
Esports Industry Welcomes the Move
While RMG platforms are under fire, esports professionals see the bill as a breakthrough.
Animesh “Thug” Agarwal, Co-founder of S8UL, said:
“This bill marks a historic turning point for Indian esports. By drawing a clear line between competitive gaming and betting, it safeguards integrity while unlocking structured growth. With the right infrastructure, India can emerge as a global esports powerhouse.”
NODWIN Gaming Co-founder Akshat Rathee echoed the optimism but stressed the need for clarity:
“For this vision to materialize, clear distinctions between esports, online gaming, social gaming, and money gaming must be defined and uniformly understood.”
AIGF Sounds Alarm Over Blanket Ban
The All India Gaming Federation (AIGF) has strongly opposed the bill, calling it a potential death blow to India’s skill gaming sector.
In a statement, the AIGF warned:
“A blanket prohibition on real-money games, including skill-based ones, would strike a death knell for this legitimate, job-creating industry. Progressive regulation, not prohibition, is the way forward.”
The federation argued that banning real-money games would harm millions of entrepreneurs, developers, and young professionals while also driving users to unsafe, unregulated platforms.
What Lies Ahead for Indian Gaming?
The passage of the Online Gaming Bill could reshape India’s digital entertainment landscape overnight. On one side, esports could gain long-awaited recognition and government support. On the other, the RMG sector the backbone of the industry’s revenue faces collapse.
With billions in market value, tax revenue, and thousands of jobs hanging in the balance, the coming weeks will determine whether India’s online gaming story evolves through regulation or unravels through prohibition.
