While gaming industry organisations are anguishing over the online gaming Bill, which was passed in Lok Sabha yesterday, people have also raised issues whether the law, as and when enacted, will lead to revenue losses for the cricket and broadcast industry.

According to a PTI report, industry bodies representing India’s online skill-gaming sector have written to Union Home Minister Amit Shah, seeking his “urgent intervention” against a draft Bill that proposes to ban all real-money games, including those based on skill.

The ‘Promotion and Regulation of Online Gaming Bill 2025’, which cleared the Lok Sabha yesterday, could spell the end of “real money gaming platforms”, that have stakes in the sponsorship market of Indian sports, most significantly cricket, a PTI report stated.

The contents of the Bill, which aims to regulate one of the fastest growing industries, is music to the ears for the Esports fraternity in the country.

But the multi-billion dollar fantasy gaming industry comprising companies that have spent big money in sponsorship of cricket might see a marked dip in their revenues.

A media report states few industries are as intertwined with real money gaming as Indian cricket. Dream11, for instance, currently holds the Indian cricket team’s title sponsorship rights at approximately Rs. 358 crore, while My11Circle is the official fantasy partner of the IPL, paying a staggering Rs. 625 crore for a five-year deal.

In addition, current and former cricket stars command personal endorsement contracts worth tens of crores from fantasy gaming platforms, the PTI report stated.

With the Bill prohibiting cash-based gaming models, these sponsorship streams could dry up, directly impacting the BCCI’s central revenue pool and team and league sponsors. Franchise-based leagues in cricket, kabaddi and football that rely on gaming sponsorships too could get impacted. Individual player endorsements may shrink dramatically.

Sports lawyer Vidushpat Singhania believes Indian cricket will survive, but not without consequences, according to the PTI report.

“Cricket is huge in India and there won’t be any dearth of sponsors for Indian cricket and its properties. However, the personal sponsorship market can shrink because of this bill. Also fan engagement will be affected,” Singhania told PTI.

He, however, explained that fantasy games can still run a subscription based model.

The gigantic revenue stream of all these fantasy gaming apps will certainly diminish due to the ban and hence money flowing back into the sport will decrease markedly.

The online gaming regulation Bill looks to create a regulatory body that will look after four diverse segments — esports, educational gaming, social and casual gaming and real money gaming. Of these, there will be restrictions on online money games, states the document which is in possession of PTI.

As per “PROHIBITIONS” clause, “No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service.

“No bank, financial institution, or any other person facilitating financial transactions or authorisation of funds shall engage in, permit, aid, abet, induce or otherwise facilitate any transaction or authorisation of funds towards payment for any online money gaming service.”

The “OFFENCES AND PENALTIES” clause clearly terms real money gaming as a criminal offence which could lead to jail and humongous fine for the service provider.

Clause 9. (1) reads: Any person who offers online money gaming service in contravention of section 5 shall be punished with imprisonment for a term which may extend to three years or with fine which may extend to one crore rupees or with both.

Clause 9. (2) reads: Any person who makes or causes to make advertisement in any media, in contravention of section 6, shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to fifty lakh rupees or with both.

Industry Sends SOS To Amit Shah: Meanwhile, in the joint letter, the online gaming federations warned that such a blanket prohibition would be a “death knell” for the industry, destroying jobs and pushing crores of users towards illegal offshore betting and gambling platforms.

The letter, dated August 19, was sent on behalf of the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS), PTI added.

The letter stated 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 percent compound annual growth rate (CAGR), doubling by 2028.

The total number of Indian online gamers grew from 36 crore (360 million) in 2020 to over 50 crore (50 million) 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 federations 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 said.

They 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 letter said.

“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, Chief Executive Officer of AIGF; Joy Bhattacharjya, Director General of FIFS and Anuraag Saxena, Chief Executive Officer of EGF.

(Image courtesy a Dream11 advertising campaign)