The future of India’s online gaming industry hangs by a thread, with a draft bill in the Lok Sabha proposing a complete ban on such platforms. Gaming industry bodies warned that the move would “strike a death knell” for the sector, which employs thousands and has attracted billions in investment.
Mint chalks out the start of online gaming startups in India, key milestones, GST hurdles, state bans, the landmark Supreme Court case, and now the proposed blanket ban on the industry.
- 2017: Telangana became the first state in India to ban all forms of online gaming, including skill-based games.
- 2019: Dream 11, the biggest Indian fantasy sports platform founded in 2008, saw its valuation cross $1 billion. It became the country’s first gaming unicorn.
- 2020: Andhra Pradesh followed Telangana and banned all online gambling.
- 2022: Tamil Nadu became the third state to ban games like Rummy and Poker.
- 2022: In September that year, online gaming platforms faced major headwinds after receiving tax notices exceeding ₹1 trillion, issued in multiple tranches over the next one year, claiming the companies misrepresented revenues. These notices were retrospective, dating back to 2017 when goods and services tax (GST) was first implemented.
- 2021 and 2022: Games24x7, founded in 2006, and Mobile Premier League, founded in 2018, attained unicorn status.
- 2020 to 2023: Lockdowns were enforced amid the COVID-19 pandemic, which forced people indoors and led to a surge in virtual gaming.
- 2023: The government reclassified online gaming, along with casinos and horse racing, as “actionable claims”, putting them in the same bracket as lotteries and betting. Starting 1 October that year, a uniform 28% GST was applicable on the entire entry fee or deposit, instead of just the platform’s commission. Gaming companies opposed the move, claiming that their platforms were skill-based, not gambling and retrospective taxes were “unfair and damaging”.
- 2023: By the end of the year, real money gaming companies accounted for an 83% share of the online gaming industry, according to a December 2023 EY report. The online gaming industry saw ₹22,931 crore investments from domestic and foreign investors between 2020 and 2024, according to EY.
- May 2025: The Supreme Court granted a stay on GST show cause notices issued to online gaming companies, putting on hold proceedings related to the over ₹1 trillion tax demand.
- August 2025: A draft bill was introduced in Lok Sabha proposing to criminalise the entire online gaming industry. Three major industry bodies have written to the government, urging it to withdraw its proposed blanket ban, while gaming startups are preparing to take the Centre to court to challenge the proposal.
