Blanket ban on online real money gaming will kill jobs, revenue, innovation: Priyank Kharge

Karnataka IT minister Priyank Kharge on Wednesday, 20 August, attacked the Centre’s nationwide ban on online real money gaming (RMG), calling it “yet another Modi government blunder in policymaking.”

Priyank Kharge, son of Congress president Mallikarjun Kharge, warned that the move would severely impact state revenues, jobs, startups, and investments. “India earns ₹20,000 crore annually from GST and income tax via online RMG. With this ban, states lose that revenue,” he posted on X.

The minister said over 2,000 gaming startups and more than two lakh jobs in IT, AI, and design could be wiped out, while ₹23,000 crore in FDI received over the past five years may dry up. “A ban kills India’s gaming talent pool and pushes entrepreneurs abroad,” he said, noting that nearly ₹7,000 crore spent annually on ads, data centres, sponsorships, and cybersecurity would also disappear.

Priyank Kharg warned that prohibition would drive users to unregulated offshore platforms worth ₹8.2 lakh crore annually, exposing them to money laundering, terror financing, and data theft. Even the Financial Action Task Force (FATF) and Rashtriya Raksha University have flagged such risks, he said.

Knee jerk blanket ban on Online Real Money Gaming without consulting stakeholders or states is another masterstroke by Modi Sarkar in bad policy making.

Here’s why:

Revenue hit: India earns ₹20,000 Cr annually from GST & income tax via online RMG. The ban means states lose…

— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) August 19, 2025

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With the Supreme Court still hearing whether the Centre or states have the authority to regulate gaming, Priyank Kharge questioned the urgency behind the ban. Instead of prohibition, he advocated a regulatory framework for skill-based platforms, strict enforcement of IT Rules, 2021, and whitelisting of legitimate operators.

“A well-balanced regulation will ensure jobs, revenue, safer users, national security, and global innovation,” Priyank Kharge said, warning that a blanket ban would only fuel illegal markets and stifle innovation.

The Union Cabinet on Tuesday cleared the Promotion and Regulation of Online Gaming Bill, which prohibits online money gaming and related advertisements, while distinguishing them from eSports and online social games. The bill prescribes up to three years in prison or fines up to ₹1 crore for operators, and penalties of up to ₹50 lakh for advertisers. It also proposes to formally recognise eSports to boost India’s entry into the global competitive gaming space.

With PTI inputs