To ban or not to ban?

A ban on online gaming involving money is interesting as it has been proposed not from a moralistic point of view but because it could lead to big losses for those involved.

- Madan Sabnavis Chief economist, Bank of Baroda

Gaming for money is a euphemism for gambling. Interestingly, gambling isn't totally banned in India. Lottery is still popular and legal in some states while gambling in casinos is permitted in others, as is horse racing. Gaming was banned in some southern states but flourished in others. Its size, according to market estimates, is upwards of ₹20,000 crore.

The decision to ban is bold and probably timely. The apologists argue it will hit the economy in several ways. First, the government will lose revenue as tax was levied on the amount involved and not just the gain. Second, a lot of investment including FDI has entered and will dry up. Third, many jobs will disappear. Fourth, the ad support to high-profile games like the IPL will take a hit. Fifth, financial channels that have offered payment gateways have to be doubly sure of their use by the firms. Finally, the counterargument is that business will shift to overseas platforms. Clearly, the government is aware of the fallout and is prepared to deal with it.