Shares of leading gaming firms came under heavy pressure on Wednesday after the Union Cabinet approved the Online Gaming Bill, which proposes a sweeping ban on all real money games, including those that are skill-based.
The development sparked concern across the industry and triggered a sell-off in gaming counters on the stock market.
Nazara Technologies led the decline, with its stock tumbling close to 7 per cent to touch Rs 1,307.30 apiece, while Delta Corp also suffered losses, falling 1.72 per cent to Rs 94.88 apiece as of 11:02 AM. Shares of OnMobile Global slipped 2.7 per cent and traded at Rs 53.73, around 11:04 AM.
Proposed Ban and Tougher Regulations
The draft law introduces stringent provisions for penalties and punishment, including a blanket prohibition on online games involving betting or gambling. The bill also seeks to bar celebrities from endorsing or promoting betting-linked gaming platforms. Those found violating the rules could face legal action.
Expected to be tabled in the Lok Sabha later today, the bill aims to separate casual online games from those involving financial stakes. While entertainment-focused digital games will remain unaffected, they may even gain official recognition, with the possibility of inclusion in global Olympiad events over the next decade, reported News18.
On the taxation front, the government is weighing options to categorise betting-related apps as ‘sin goods’ under the Goods and Services Tax (GST) framework, potentially subjecting them to levies as high as 40 per cent.
Industry Raises Alarm Over Impact
The Centre has framed the move as part of its broader agenda to regulate the rapidly expanding online gaming sector, address financial misuse, and build safeguards against illegal activities. However, industry associations argue that the Draft Gaming Bill, 2025, could cripple the ecosystem.
India’s online skill-gaming sector is currently valued at more than Rs 2 lakh crore and employs over 2 lakh people. Industry bodies fear this workforce could face job losses if the proposed ban comes into effect. In a joint appeal to Union Home Minister Amit Shah, the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and Federation of Indian Fantasy Sports (FIFS) sought urgent intervention.
The associations cautioned that the measure would not only devastate over 400 registered companies but also drive millions of Indian gamers towards offshore gambling platforms, which operate without regulatory oversight.
A Tipping Point for the Sector
The sharp fall in gaming stocks on Wednesday reflects investor apprehension over the future of the industry. With a bill of such wide-ranging consequences set to be introduced in Parliament, the sector faces what many insiders describe as an existential challenge.
If passed, the legislation could redefine India’s digital gaming landscape, shifting the focus entirely to recreational and non-monetary games, while shutting down avenues for real money play. The industry, investors and policymakers are now bracing for an intense debate in the weeks ahead.