India’s Real-Money Gaming Ban: A Booming Industry Brought to Its Knees

India’s gaming industry, once the poster child of the country’s digital economy, has been jolted by the government’s sweeping ban on real-money online games. The Promotion and Regulation of Online Gaming Bill, 2025—now law following presidential assent—has outlawed all forms of money-based games while promoting e-sports and free-to-play social formats.

For an industry that had just begun to mature—powering sports sponsorships, creating jobs, and attracting global investment—the move has come as a shock.

From Boom to Bust Overnight

Until a few weeks ago, India’s real-money gaming (RMG) sector was thriving. More than 400 startups operated in the space, collectively generating nearly ₹2.3bn ($27.7m) in annual taxes and sustaining over 200,000 jobs. The biggest of them, Dream11, was valued at $8bn and enjoyed the prestige of sponsoring the Indian cricket team.

But with the stroke of a pen, that ecosystem has been dismantled. Dream Sports CEO Harsh Jain admitted that “95% of Dream11’s revenues and 100% of its profits disappeared overnight.” Still, he struck a conciliatory note, pledging no layoffs and stressing the company’s intent to pivot rather than fight: “The government has made it clear they don’t want this right now. We want to focus entirely on the future and not live in the past.”

Cricket Feels the Shockwaves

The ban’s fallout extends beyond gaming firms. The Board of Control for Cricket in India (BCCI) terminated its sponsorship deal with Dream11 shortly after the law was passed. For a sport where gaming platforms had become ubiquitous commercial partners—from the IPL to bilateral series—the sudden vacuum raises pressing questions about sponsorship pipelines.

Industry Voices: “No Nuance, No Transition”

Industry insiders argue that the government acted hastily, collapsing an entire sector without a roadmap. Smrita Singh Chandra, who previously led policy communications at Dream11, summed up the frustration in a LinkedIn post: the ban, she wrote, was introduced “without transition, nuance, or consideration of economic realities.”

That sentiment is echoed by Mumbai-based gaming lawyer Jay Sayta, who called the legislation a “massive setback” for investors. He noted that companies had built business models on the back of court rulings which recognised fantasy sports, rummy, and poker as “games of skill” distinct from gambling. The new Act makes no such distinction, applying a blanket ban across both skill and chance-based games.

Legal Challenge vs. Compliance

The sector’s response has been divided. A23, a platform offering rummy and poker, has filed a petition in the Karnataka High Court, arguing that the law “criminalises the legitimate business of playing online games of skill” and asking that it be struck down when applied to skill-based categories.

In contrast, most big players have opted against confrontation. Zupee suspended all paid games, shifting to free-to-play social gaming. Its founder Dilsher Singh Malhi said the company “fully respects the legislative process and remains committed to operating and innovating within the framework of the law.”

Similarly, Gameskraft announced it would comply with the ban while working on “constructive dialogue with policymakers” and “responsible innovation.”

The Road Ahead

For policymakers, the intent is clear: curb addiction, protect consumers, and clamp down on money laundering. IT Minister Ashwini Vaishnaw told Parliament that online money games had harmed 450 million Indians, triggering losses of over ₹200bn ($2.4bn) and even cases of “depression and suicides”—though the source of these figures is unclear.

But the cost of such a blunt policy tool is steep. Beyond jobs and tax revenue, the ban risks drying up foreign investment in India’s wider digital economy and cutting off a critical source of sports sponsorship.

For now, the industry is split between compliance and resistance. But one thing is certain: India’s gaming story has entered a new, uncertain chapter. Whether courts reassert the “skill vs. chance” distinction or the government softens its stance, the outcome will determine not just the fate of fantasy sports and poker apps, but the entire nexus between gaming and sport in India.