Online Gaming Crackdown: Will Singapore, Dubai Come To E-Gaming Companies' Rescue?
India’s online gaming sector currently has an enterprise valuation of over Rs 2 lakh crore, generates annual revenues of Rs 31,000 crore, and contributes more than Rs 20,000 crore in taxes.
After crypto and bitcoin, will Dubai and Singapore come to rescue for Indian e-gaming companies as the Centre plans to introduce the controversial Promotion and Regulation of Online Gaming Bill 2025 proposing a ban on all real-money games?
This is a déjà vu moment that takes us back to the time when the government banned cryptocurrency exchanges and imposed taxes on them, leading many companies to shut down while others relocated to countries like Dubai and Singapore.
India’s top three online gaming industry associations have written to Union Home Minister Amit Shah, seeking urgent intervention against the proposed bill that aims to put a blanket ban on real-money games.
The government has introduced the Promotion and Regulation of Online Gaming Bill, 2025 in the Parliament on Wednesday, after its Cabinet approval on Tuesday. The proposed law seeks to ban advertising and endorsements of platforms offering real-money games. It also bars banks and NBFCs from processing related transactions.
India’s online gaming sector currently has an enterprise valuation of over Rs 2 lakh crore, generates annual revenues of Rs 31,000 crore, and contributes more than Rs 20,000 crore in taxes, as per association's letter. The sector also supports over 2 lakh jobs, directly and indirectly.
Dubai, Singapore— Better Options
Several countries have a favourable business environment for online gaming, but Dubai and Singapore's strong investor infrastructure, and ambition to become a global digital economy hub further draws start-ups and investors.
Dubai has launched the Dubai Program for Gaming 2033, that aims to build a strong gaming ecosystem by attracting top talent, creating jobs, and support innovation. The program also helps news businesses and startups, provides funding and mentorship, and promotes esports by organising tournaments and leagues.
The Gaming Visa was launched in May 2024 as part of Dubai Program for Gaming 2033. This visa targets people behind the games, developers, designers, animators, content creators, esports pros, and not just casual players or streamers.
On the other hand, Singapore has established itself as a growing market in esports. High-quality technology infrastructure, government backing and the developed economy make Singapore an important esports country and something of a hub for Southeast Asian esports.
Razer, Riot Games, and Ubisoft amongst major esports organisations and companies have headquarters or offices in the country. Meanwhile, the UK, the US and Australia, regulate and license online gaming business with strict KYC, advertising rules and enforcement.
Crypto Companies Big Move
Many crypto currency companies moved to Singapore and Dubai, after the Reserve Bank of India banned banks from doing business with crypto exchanges from July 2018.
Though the status of cryptocurrency transactions is still in limbo, in the absence of comprehensive legislation, India introduced taxation for cryptocurrency transactions. The flat 30% taxation on profits from cryptocurrency trading, mining, and sales makes India as one of the highest tax rates globally.
