The landscape of online gaming in India is undergoing a significant transformation as the government moves to implement a ban on real-money gaming. This shift has prompted several prominent startups in the sector to halt their operations, marking a pivotal moment in the industry.
Legislative Changes Impacting the Gaming Sector
On Thursday, the Indian Parliament’s upper house approved the Promotion and Regulation of Online Gaming Bill, 2025, which aims to prohibit real-money gaming while fostering casual online games and esports. This legislative action follows the bill’s passage in the lower house just a day prior, with only presidential approval remaining before it becomes law—a formality anticipated to occur shortly.
Startups React to the New Law
In the wake of the bill’s approval, several Indian startups, including notable names in the gaming industry, have begun winding down their real-money gaming operations. Companies such as Dream Sports and Mobile Premier League (MPL) have taken immediate steps to inform employees and users about the cessation of their gaming services.
Dream Sports Takes Action
Dream Sports, a key player in the fantasy sports arena, has already shut down its newly launched quick-play fantasy app, Dream Picks. While some of its other applications, like Dream11, remain operational for now, the company has indicated plans to completely discontinue its real-money gaming services once the new legislation is enacted.
MPL and Other Startups Follow Suit
Similarly, MPL has suspended all real-money gaming activities and is no longer accepting deposits. Users have been notified through the app that they can withdraw their remaining balances starting from August 22, 2025. Other startups, including Zupee and Probo, have also ceased their real-money gaming operations, opting to focus on free-to-play games instead.
Impact on Employees and Future Prospects
The shutdown of these operations has left many employees in search of new job opportunities, with numerous individuals sharing their job hunt experiences on social media. The uncertainty surrounding job security has led to concerns about potential layoffs as companies adjust to the new regulatory environment.
Industry Valuation and Future Growth
Despite the challenges posed by the new legislation, the real-money gaming sector in India boasts a substantial enterprise valuation of approximately ₹2 trillion (around $23 billion). The industry has been a significant contributor to the economy, generating substantial revenues and tax contributions. Industry experts had projected a robust growth trajectory, anticipating a compound annual growth rate of 28% that could double the industry’s size by 2028.
Government’s Stance on Online Gaming
The Indian government has expressed its commitment to fostering a safe and innovative gaming environment through this new legislation. Officials believe that the bill will not only promote esports and casual gaming but also mitigate the potential negative impacts associated with online gambling.
As the gaming landscape evolves, stakeholders in the industry will need to adapt to the new regulations while exploring alternative avenues for growth and engagement in the gaming community.