India's recent ban on real-money gaming has sent shockwaves through the country's booming online gaming industry, with major players like Dream Sports and MPL (Mobile Premier League) announcing the shutdown of their real-money game offerings.
The decision follows the passage of the Online Gaming Bill 2025 by India's parliament, a sweeping legislation aimed at curbing financial risks and addiction associated with such platforms, as reported by TechCrunch.
The Rise and Fall of Real-Money Gaming in India
This sector, once valued at over $23 billion, has been a significant driver of digital entertainment and employment, supporting around 1.3 lakh jobs and major sponsorships like the IPL.
Companies like Dream Sports, which operates the popular Dream11 platform, and MPL have attracted millions of users and substantial investments from global firms like Tiger Global and Peak XV over the past decade.
Immediate Impact on Startups and Users
The immediate fallout includes the suspension of real-money games on platforms like MPL, Zupee, and Games24x7, leaving millions of users—estimated at over 450 million—without access to these services.
Industry insiders fear massive layoffs and financial losses, with annual revenue hits potentially exceeding $2.2 billion, as companies scramble to pivot to other verticals or markets.
A History of Regulatory Challenges
This isn't the first time the industry has faced scrutiny; previous measures like the 28% GST imposition in 2023 already dented profits for many firms, with Dream11 reporting an expected 80% drop in operating profit for FY24.
The government has also been tightening compliance, with earlier plans to bring such platforms under anti-money laundering laws to address concerns over untraceable funds and financial ruin among players.
What Lies Ahead for Indian Gaming?
While the ban targets real-money games, the Online Gaming Bill 2025 also promotes esports and casual gaming, signaling a potential shift in focus for the industry towards non-monetary formats.
Some experts speculate this could open doors for alternative technologies like crypto-based gaming, though regulatory hurdles in India’s Web3 space remain a challenge.
For now, companies like Dream Sports and MPL are exploring international expansion and diversifying their portfolios, but the road ahead looks uncertain for an industry once hailed as a cornerstone of India's digital economy.
As this story unfolds, the balance between regulation and innovation will be critical in shaping the future of gaming in India, a market with immense potential yet significant challenges.
Andrew Lee
