Just a few months ago, India’s online real-money gaming sector was thriving, boasting a multi-billion-dollar marketplace that attracted significant investments and captivated over 155 million users. Brands like Dream11, My11Circle, MPL, WinZO, Nazara, and Zupee became household names, their advertisements dominating cricket broadcasts and digital platforms. However, the landscape is shifting rapidly as a new law challenges this booming ecosystem, with Dream11, the flagship of Indian fantasy sports, reportedly leading the retreat.
The lower house of parliament recently endorsed the “Promotion and Regulation of Online Gaming Bill, 2025”. While it encourages esports and casual gaming without monetary stakes, it imposes a sweeping ban on all real-money games, including both skill and chance-based games along with their advertisements and any financial transactions linked to them. Violators may face up to three years in prison, hefty fines of ₹10 million, or both, with celebrities promoting these games also at risk of penalties.
For Dream11, which reported earnings of ₹6,384 crore in FY23—over two-thirds of which stemmed from real-money gaming—the new law poses an existential risk. Internal communications indicate the company is gearing up for a strategic pivot, shifting its focus to Fancode and international game formats, reminiscent of MPL’s previous overseas ventures. This shift suggests that even industry giants may now prioritize survival over local market dominance.
The implications are staggering. Indian real-money gaming startups collectively boast a valuation of around ₹2 trillion, generating revenues of ₹31,000 crore, contributing approximately ₹20,000 crore in taxes annually, and employing over 200,000 individuals. Industry associations warn that this blanket ban could lead to the closure of over 400 companies and significant job losses. Nazara Technologies, a key investor in platforms like PokerBaazi and Classic Rummy, experienced a nearly 13% drop in share price following the bill’s passage.
Experts in the industry have voiced strong objections. The All India Gaming Federation labels the legislation a “death knell,” arguing that it fails to differentiate between games of skill and games of chance. Rather than mitigating financial risks, this law may push players towards illegal offshore platforms and matka networks, which operate without regulations, consumer protections, or tax contributions.
The law also raises significant concerns regarding proportionality and due process. Critics highlight that financial harm incidents often involve unregulated offshore betting apps, not compliant Indian companies. By banning legitimate platforms, India risks dismantling lawful businesses while doing little to curb illegal gambling. The ambiguity surrounding terms like esports, casual gaming, and online money gaming further adds to the uncertainty, potentially jeopardizing the broader AVGC (Animation, Visual Effects, Gaming, and Comics) ecosystem.
From an investment perspective, this move is alarming. Global funds, including Tiger Global and Peak XV Partners, have heavily invested in Indian real-money gaming startups. A sudden ban could obliterate billions in investments, tarnish India’s standing as a reliable digital economy, and halt innovation in one of the country’s fastest-growing sectors. It is plausible that we may witness companies quietly relocating operations offshore or entirely shutting down domestic RMG services.
Publicly, casual gaming and esports companies have embraced the law, viewing it as an opportunity to refine their IP and monetization strategies without regulatory hurdles. However, the broader industry fears that the government may inadvertently stifle innovation, disrupt jobs, and foster an illegal economy that is more challenging to regulate.
For Dream11 and other major players, the upcoming months will be pivotal. Will they pivot to international markets, diversify their offerings, or challenge the law in court? Legal disputes seem unavoidable, given the looming questions regarding proportionality and constitutionality under Article 19(1)(g). The industry stands at a crossroads, with millions of gamers and thousands of employees facing an uncertain future. India’s reputation as a hub for digital innovation hangs in the balance.
