India's ban on real money gaming (RMG) is sending shockwaves through the global gaming industry, leading to massive financial impairments for major players who had invested heavily in the burgeoning Indian market. The implementation of the Promotion and Regulation of Online Gaming Act, 2025, which bans online games involving real money, has forced companies to shut down operations and re-evaluate their presence in the country.
Gaming giants like Flutter Entertainment are reporting substantial write-downs. Flutter, a UK-based company, disclosed a $556 million impairment charge after its India unit, Junglee Games, ceased real-money rummy operations. This contributed to Flutter's overall net loss of $789 million in Q3 2025. CEO Peter Jackson expressed his disappointment, noting the company's significant investments in India over the past few years and the lack of consultation before the ban was enacted. Junglee Games will now focus on providing free-to-play gaming content while Flutter explores mid-term strategies for the Indian market.
Domestic companies are also feeling the pinch. Nazara Technologies, an Indian gaming firm, recorded an impairment of ₹914.7 crore on its investment in Moonshine Technologies, the parent company of PokerBaazi. Several gaming platforms have either shut down or scaled down their operations in India. Hike shut down its RMG app Rush, WinZo exited the RMG segment to expand into the US, and MPL (Mobile Premier League) halted all cash gaming in India. MPL's founder, Sai Srinivas, stated that the new law instantly wiped out 50% of the group's revenue.
The ban's impact extends beyond gaming companies. Payment firms are experiencing reduced transaction volumes as gaming-related payments decline. While larger payment aggregators may weather the storm, smaller ones heavily reliant on gaming transactions could face significant profitability challenges. The fintech industry as a whole earned an estimated ₹1,500 crore in revenue from gaming-linked transactions in the last financial year, a revenue stream that has now been abruptly cut off.
The Indian government's decision to ban RMG stems from concerns about rising gambling addiction, economic safeguards, and the protection of young gamers. The policy prohibits all forms of online games where real money is wagered, including fantasy sports leagues with entry fees and card games like rummy. The government aims to promote healthy gaming habits and prevent money laundering.
However, critics argue that the ban overlooks the distinction between games of skill and games of chance, potentially stifling legitimate businesses. Industry experts also point out the significant economic contributions of the RMG sector, including tax revenues, job creation, and foreign direct investment. The RMG sector contributed nearly ₹20,000–₹25,000 crore annually in direct and indirect taxes and supported over 200,000 direct and indirect jobs.
The ban has led to significant revenue losses and market shrinkage. India's online gaming market was projected to reach $5 billion by 2025, with RMG contributing over 80%. Analysts predict a 40-50% contraction in the short term. There are also concerns that the ban could push users towards unregulated offshore platforms, leading to further tax leakages.
The future of RMG in India remains uncertain. While some companies are exploring free-to-play models and potential legal challenges, the ban has undoubtedly created a challenging environment for the industry. The government's stance on RMG reflects a broader trend of increased regulatory scrutiny in the online gaming sector, signaling a need for companies to adapt and innovate to navigate the evolving landscape.
