The recent enactment of the Promotion and Regulation of Online Gaming Law, 2025, has sent shockwaves through India's online gaming industry, leading to significant operational changes for major players like Dream11. In the wake of this legislation, which bans real-money gaming (RMG), Dream11's CEO, Harsh Jain, has made it clear that the company will not legally challenge the government's decision.

Jain stated, "The government has made it clear they don't want this. We won't waste energy fighting…we'd rather build for the future than litigate the past". This decision reflects a pragmatic approach, prioritizing the company's long-term strategy over a potentially lengthy and resource-draining legal battle.

The new law prohibits the promotion and operation of gaming apps that require users to pay money to win cash prizes. This has led Dream11 to halt all paid contests on its platform and pivot entirely to a free-to-play model. Dream11 has also stopped paid contests on its Dream Picks and Dream Play apps. The company has assured users that their existing wallet balances remain safe and fully withdrawable.

Dream11, which had a valuation of $8 billion in 2021, scaled after courts recognized fantasy gaming as a "game of skill" over the past five years. However, the new law necessitates a complete reset. Jain acknowledged that the abrupt shutdown is the hardest blow in the company's 18-year journey.

Other companies, including Gameskraft, MPL, Zupee, Games24x7 and Probo, have also suspended or shut down their RMG operations. Gameskraft has paused "Add Cash" and "Gameplay services" on its rummy apps. My11Circle has also suspended all gaming services that involve real money.

The government's decision to ban RMG stems from concerns about addiction, financial loss, and potential misuse of these platforms for financial fraud, money laundering, and activities that compromise national security. IT Minister Ashwini Vaishnaw stated that "Online money games are a public health risk. When it comes to saving youngsters, the priority will always be that".

While Dream11's primary business model has been disrupted, the company is focusing on its other verticals, including FanCode, DreamSetGo, and Dream Game Studios. Dream Sports is also betting on sports AI, creator-led fan engagement, and fintech experiments. Dream Sports is expected to shift focus to other arms such as FanCode, DreamSetGo, Dream Game Studios and investments like Willow TV and CricBuzz. In addition, Dream Sports has launched Dream Money, a personal money management app.

Despite the challenges, Jain remains optimistic about the future. He noted that Dream11 still has a substantial user base of 260 million, 800 employees, and sufficient cash reserves for a multi-year runway.

The online gaming law is expected to have a wide-ranging impact on the industry. Experts predict potential job losses, reduced foreign investment, and a decrease in tax revenue. The ban is expected to deal a ₹4,500-crore hit to the gaming and advertising ecosystem. RMG platforms have been significant advertisers in cricket leagues and primetime television, so broadcasters and sports franchises could face major revenue shortfalls.

While Dream11 has decided not to challenge the ban, other real-money gaming companies are reportedly preparing to file writ petitions in high courts, arguing that the law violates constitutional protections.

Dream11 released a statement saying, "We have always been and always will be a law-abiding company, and have conducted our business in compliance with the laws...While we believe that progressive regulations would have been the right way forward, we will respect the law and will fully comply with 'The Promotion & Regulation of Online Gaming Law, 2025'".