NEW DELHI: Karnataka IT and biotechnology minister Priyank Kharge on Wednesday criticised the Centre’s blanket ban on online real money gaming (RMG), calling it "another masterstroke by Modi Sarkar in bad policy making."
Kharge, son of Congress president Mallikarjun Kharge, warned that the move would hurt state revenues, investment, and jobs, putting at risk over 2,000 gaming startups and more than two lakh positions in IT, AI, and design.
"India earns Rs 20,000 crore annually from GST and income tax via online RMG. The ban means states lose this revenue stream," Kharge said through a post on X.
The minister highlighted how an FDI of Rs 23,000 came in over the past 5 years, but shutting India’s digital industry could drive global investors away.
“Ecosystem collapse: Rs 7,000 Cr spent annually on ads, data centres, sponsorships, cyber security will all be gone overnight,” Kharge said.
Pointing out that the Supreme Court is still considering whether regulation lies with the Centre or the states, Kharge asked, “why the rush to ban now?”
He also urged the strict enforcement of IT Rules, 2021, saying, "a well-balanced regulation will ensure jobs, revenue, safer users, national security and global innovation."
Noting the “unintended consequences” of the proposed blanket ban, Kharge said, “Bans don’t stop addiction or suicides. Instead, they push users to unregulated offshore platforms worth Rs 8.2 lakh Cr annually, where Government has no control at all.”
The Online Gaming Bill, titled the Promotion and Regulation of Online Gaming Bill, 2025, was cleared by the cabinet and was introduced in the Lok Sabha on Wednesday. The government termed it a move that “strikes a balanced path, encouraging innovation and youth engagement through safe and positive online gaming, while firmly prohibiting harmful online money games.”
The bill seeks to boost e-sports and social online games while introducing a blanket ban on real-money gaming, betting, and gambling. It covers fantasy sports, poker, rummy, and online lotteries while also banning related ads and financial transactions.
The definition does not include e-sports, which the government recognises as a legitimate competitive sport.
The Bill imposes strict penalties where operators of illegal money gaming platforms could face up to three years in jail or fines of up to Rs 1 crore, advertising such platforms may bring two years’ imprisonment or fines up to Rs 50 lakh, and financial institutions enabling related transactions could face similar penalties. Repeat offenders would be subject to harsher sentences and higher fines.
Kharge, son of Congress president Mallikarjun Kharge, warned that the move would hurt state revenues, investment, and jobs, putting at risk over 2,000 gaming startups and more than two lakh positions in IT, AI, and design.
"India earns Rs 20,000 crore annually from GST and income tax via online RMG. The ban means states lose this revenue stream," Kharge said through a post on X.
Knee jerk blanket ban on Online Real Money Gaming without consulting stakeholders or states is another masterstroke by Modi Sarkar in bad policy making.
— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) August 19, 2025
Here’s why:
Revenue hit: India earns ₹20,000 Cr annually from GST & income tax via online RMG. The ban means states lose…
The minister highlighted how an FDI of Rs 23,000 came in over the past 5 years, but shutting India’s digital industry could drive global investors away.
“Ecosystem collapse: Rs 7,000 Cr spent annually on ads, data centres, sponsorships, cyber security will all be gone overnight,” Kharge said.
Pointing out that the Supreme Court is still considering whether regulation lies with the Centre or the states, Kharge asked, “why the rush to ban now?”
He also urged the strict enforcement of IT Rules, 2021, saying, "a well-balanced regulation will ensure jobs, revenue, safer users, national security and global innovation."
Noting the “unintended consequences” of the proposed blanket ban, Kharge said, “Bans don’t stop addiction or suicides. Instead, they push users to unregulated offshore platforms worth Rs 8.2 lakh Cr annually, where Government has no control at all.”
The Online Gaming Bill, titled the Promotion and Regulation of Online Gaming Bill, 2025, was cleared by the cabinet and was introduced in the Lok Sabha on Wednesday. The government termed it a move that “strikes a balanced path, encouraging innovation and youth engagement through safe and positive online gaming, while firmly prohibiting harmful online money games.”
The bill seeks to boost e-sports and social online games while introducing a blanket ban on real-money gaming, betting, and gambling. It covers fantasy sports, poker, rummy, and online lotteries while also banning related ads and financial transactions.
The definition does not include e-sports, which the government recognises as a legitimate competitive sport.
The Bill imposes strict penalties where operators of illegal money gaming platforms could face up to three years in jail or fines of up to Rs 1 crore, advertising such platforms may bring two years’ imprisonment or fines up to Rs 50 lakh, and financial institutions enabling related transactions could face similar penalties. Repeat offenders would be subject to harsher sentences and higher fines.
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