The central government has cracked down on real money online gaming platforms, enacting the online gaming bill into law. These platforms account for approximately ₹4,500 crore in advertising spending during IPL and major sporting events. The implementation of the bill could significantly impact the advertising industry and sports organizers.
Online Gaming Bill: The central government officially enacted the online gaming bill on Friday after receiving presidential approval, which imposes restrictions on real money online gaming platforms and esports. These platforms account for approximately ₹4,500 crore of advertising spending in India, spanning IPL, regional sports leagues, and prime-time television. Experts suggest that the bill's implementation could result in considerable financial and media revenue losses for the advertising industry, broadcasters, and sports organizers.
Government's Strict Action
The central government has taken a major step to clamp down on real money online gaming platforms. The online gaming bill, passed by Parliament, has also received presidential approval a day later, making it now a law. Under this law, all games played for money, esports, and online social gaming platforms will be banned.
The government believes that real money gaming has become a serious problem for society. This step has been taken in view of its negative impact. According to experts, after the implementation of this law, the future of these platforms is under a cloud of uncertainty, and the advertising industry may be directly affected.
Potential Loss of ₹4,500 Crore to the Advertising Industry
Analysts estimate that if real money gaming platforms are shut down, the Indian advertising industry could face a setback of around ₹4,500 crore. These companies have had a significant share of advertising spending on the Indian Premier League (IPL), regional sports leagues, and prime-time television. A substantial decrease in media revenue is expected as a result.
According to Ambika Sharma, Founder and Chief Strategist of Pulp Strategy, real money gaming companies have been among the highest advertising spenders in the last four years. They account for approximately 6-7 percent of India's total advertising expenditure annually. This share increases even further during IPL and other major sporting events.
Impact on Sports and Broadcasters
Experts believe that most small and online league gaming companies depend on advertising. If these advertisements are stopped, broadcasters and streaming platforms may have to bear a loss of approximately ₹2,000 crore.
Sports will be hit the hardest. For many years, fantasy apps and real-money gaming brands have been a major source of advertising in IPL and other major sporting events. Without them, there will be a large void that other advertisements will not be able to fill immediately.
What is the Online Gaming Bill?
The Online Gaming Promotion and Regulation Bill is now law. It will be fully effective after the notification is issued. The government believes that real money online gaming has become a serious problem for society and this step is necessary to prevent its negative effects.
After this law comes into effect, real money gaming companies and their advertising networks will be directly affected. Experts say that the advertising industry, sports organizers, and media platforms should be prepared for this change.
