Just a few months ago, India’s online real-money gaming world was booming. The sector was a multi-billion-dollar playground. It pulled in massive investments and entertained over 155 million users. Dream11, My11Circle, MPL, WinZO, Nazara, and Zupee were household names. Their ads dominated cricket broadcasts and digital screens everywhere. But now, the landscape is changing fast. A new law threatens to upend this thriving ecosystem. Dream11, the poster child of Indian fantasy sports, is reportedly leading the retreat.
The lower house of parliament recently passed the “Promotion and Regulation of Online Gaming Bill, 2025.” While it supports esports and casual gaming without monetary stakes, it imposes a blanket ban on all real-money games. This includes games of skill or chance, their advertisements, and any financial transactions connected to them. Anyone offering these games could face up to three years in prison, a fine of ₹10 million, or both. Celebrities promoting such games could also face penalties.
For Dream11, which earned ₹6,384 crore in FY23 with over two-thirds coming from real-money gaming, the law is an existential threat. Internal communications show the company is preparing for a major pivot. Dream11 is shifting focus to Fancode and international game formats, a move reminiscent of MPL’s earlier overseas expansion. This signals that even the biggest players may now prioritize survival over domestic dominance.
The repercussions are enormous. Indian real-money gaming startups collectively have a valuation of around ₹2 trillion, generate revenues of ₹31,000 crore, contribute roughly ₹20,000 crore in taxes annually, and employ over 200,000 people. Industry bodies warn that the blanket ban could shutter over 400 companies and lead to massive job losses. Nazara Technologies, a major investor in platforms like PokerBaazi and Classic Rummy, saw its share price fall nearly 13% after the bill passed.
Industry experts have been vocal. The All India Gaming Federation calls the legislation a “death knell.” They argue that the ban fails to distinguish between games of skill and games of chance. Instead of eliminating financial risk, it may drive players to illegal offshore platforms and matka networks, which operate without safeguards, consumer protection, or taxes.
The law also raises questions about proportionality and due process. Critics point out that incidents of financial harm often involve offshore betting apps, not regulated Indian companies. By shutting down compliant platforms, India risks destroying legitimate business while doing little to curb illegal gambling. The lack of clarity around terms such as esports, casual gaming, and online money gaming adds further uncertainty, potentially impacting the broader AVGC (Animation, Visual Effects, Gaming, and Comics) ecosystem.
From an investor’s perspective, the move is alarming. Global funds, including Tiger Global and Peak XV Partners, had heavily invested in Indian real-money gaming startups. A sudden ban could wipe out billions in investments, undermine India’s reputation as a stable digital economy, and stall innovation in one of the country’s fastest-growing sectors. It is not far-fetched to speculate that we may see companies quietly relocating operations offshore or shutting down domestic RMG services altogether.
Publicly, casual gaming and esports companies have welcomed the law, seeing it as a chance to focus on building IP and monetization strategies without regulatory ambiguity. Yet, the broader industry worries that the government may unintentionally crush innovation, disrupt jobs, and fuel an illegal economy that is harder to monitor.
For Dream11 and other major players, the next few months will be critical. Will they pivot to overseas markets, diversify their offerings, or challenge the law in court? Legal challenges seem inevitable, as questions about proportionality and constitutionality under Article 19(1)(g) loom large. The industry is at a crossroads. Millions of gamers and thousands of employees face an uncertain future, and India’s reputation as a hub for digital innovation hangs in the balance.
