In a significant legislative move, India’s Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, effectively banning real-money gaming across the nation. This development has prompted leading startups in the sector, including Dream Sports and Mobile Premier League (MPL), to begin shutting down their real-money gaming operations.
Legislative Background
The bill, which received approval from both the lower and upper houses of Parliament, now awaits the President’s assent—a procedural step expected to be completed shortly. The legislation aims to eliminate real-money gaming while promoting casual online games and esports. This move reflects the government’s commitment to fostering a safer digital environment and addressing concerns related to gambling and its societal impacts.
Immediate Industry Impact
Following the bill’s passage, several prominent companies have taken swift action:
– Dream Sports: Known for its flagship app Dream11, Dream Sports has ceased operations of its recently launched quick-play fantasy gaming app, Dream Picks. While Dream11 and Dream Play remain operational for now, the company plans to shut down all real-money gaming activities once the legislation is enacted. During a recent town hall meeting, employees were briefed on the impending changes and the company’s strategic response.
– Mobile Premier League (MPL): Backed by investors such as Peak XV and Times Internet, MPL has suspended all real-money games and halted deposit acceptance. Users have been notified that their deposit balances, minus Goods and Services Tax (GST), will be available for withdrawal starting August 22, 2025.
– Zupee: Supported by investors including WestCap Group and Tomales Bay Capital, Zupee has discontinued its paid gaming services. However, popular free titles like Ludo Supreme and Snakes & Ladders will continue to be accessible to users.
– Probo: This startup has halted its real-money gaming operations in compliance with the new legislation, expressing respect for the government’s decision and indicating a pause in such activities until further notice.
– Gameskraft: The company has stopped accepting money on its rummy apps, aligning with the new regulatory framework.
– Cricbuzz11: Owned by Times Internet, this fantasy cricket game has ceased operations, informing users that deposits, net of GST, will be refunded within 30 days.
Employee and Economic Repercussions
The abrupt cessation of real-money gaming operations has led to significant workforce implications. Many employees from these startups are now seeking new employment opportunities, with numerous individuals sharing their job searches on social media platforms. An anonymous employee expressed concerns about job security, anticipating potential role reductions as companies strive to adapt to the new legal landscape and meet investor expectations.
The real-money gaming industry in India has been a substantial economic contributor, with a combined enterprise valuation of approximately ₹2 trillion (around $23 billion). The sector has generated cumulative revenues of ₹310 billion (approximately $3.6 billion) and contributed ₹200 billion (about $2.29 billion) annually in direct and indirect taxes. Industry bodies have projected a 28% compound annual growth rate, which would have potentially doubled the industry’s size by 2028.
Government’s Perspective
Prime Minister Narendra Modi highlighted the government’s commitment to transforming India into a hub for gaming, innovation, and creativity. He emphasized that the new bill aims to encourage esports and online social games while protecting society from the adverse effects of online money gaming.
Historical Context and Regulatory Landscape
The ban on real-money gaming is the culmination of a series of regulatory measures aimed at addressing concerns related to online gaming and gambling:
– Taxation Changes: In July 2023, the Goods and Services Tax Council imposed a 28% tax on online gaming, casinos, and horse racing, eliminating distinctions between games of skill and chance. This move was met with criticism from industry stakeholders, who argued that it equated legitimate online skill gaming with gambling.
– Investor Appeals: In response to the taxation changes, prominent investors, including Tiger Global and Peak XV, urged Prime Minister Modi to reconsider the tax regime, citing potential write-offs of $2.5 billion and the loss of one million direct and indirect jobs.
– Industry Differentiation Efforts: In July 2024, a coalition of over 70 video game companies in India sought to distinguish themselves from real-money gaming firms. They requested the government to create clear categories for video games and real money games to avoid unintended consequences from regulatory measures.
– Platform Policies: In June 2024, Google paused its experiment to expand real-money games on the Play Store, citing challenges due to the lack of a central authority to approve such apps in certain regions.
Future Outlook
While the immediate response from real-money gaming companies has been to cease operations, the long-term impact on the industry remains to be seen. Some companies may explore legal challenges to the legislation, though initial assessments suggest a challenging path in the Supreme Court. Others might pivot towards casual gaming and esports, aligning with the government’s focus on promoting these segments.
The ban underscores the delicate balance between fostering innovation in the gaming industry and addressing societal concerns related to gambling. As the regulatory environment continues to evolve, stakeholders will need to navigate these changes strategically to sustain growth and compliance.
