The Indian online gaming industry is facing a significant upheaval as major players like Dream Sports (Dream11), Mobile Premier League (MPL), and Gameskraft begin to suspend their real-money gaming (RMG) services in response to the recently passed Promotion and Regulation of Online Gaming Bill, 2025. This legislative move, which bans all online money games, has sent shockwaves through the industry, prompting immediate shutdowns and strategic shifts.
The Promotion and Regulation of Online Gaming Bill, 2025, was recently approved by both houses of Parliament. The bill aims to regulate online gaming, with a focus on preventing addiction and financial harm, particularly among middle-class youth. Union Minister Ashwini Vaishnaw highlighted the government's concern over the negative impacts of online money games, citing psychological disorders, compulsive behavior, and financial losses as key reasons for the ban.
In light of the new legislation, MPL announced a complete suspension of its money gaming operations in India. In a statement, the company emphasized its respect for the rule of law and commitment to compliance. MPL assured users that while new deposits would no longer be accepted, they could seamlessly withdraw their balances. The company plans to continue offering free-to-play competitive gaming experiences in India, reaffirming its long-term commitment to the Indian market.
Dream Sports, the parent company of Dream11, is also preparing to cease its real-money gaming operations. CEO Harsh Jain reportedly informed employees that there is no legal way to continue operations once the law takes effect. This decision will significantly impact Dream Sports, as a substantial portion of its revenues are generated from Dream11's paid fantasy contests. Sources indicate that RMG contributes over 67% of Dream Sports' annual revenue. Dream11 has already notified users that it is pausing all "Pay to Play" Fantasy Sports contests on its platform and assured them that their account balances are safe and available for withdrawal.
Gameskraft, another key player in the RMG sector, has also announced the suspension of its money-based gaming services. A company spokesperson stated Gameskraft's intent to engage constructively with policymakers. Games24x7, the operator of platforms like RummyCircle and My11Circle, has stopped taking user deposits but has yet to issue a public response. Zupee, another online gaming platform, has announced that they are discontinuing paid games, but their free titles will continue to be available for all users.
The ban on real-money games is expected to have far-reaching consequences for the Indian gaming industry. Industry experts have warned that the ban could result in business closures and job losses. The All India Gaming Federation (AIGF) has expressed concern that the bill could affect crores of genuine gamers and drive them to illegal offshore betting platforms. The online gaming market in India is currently valued at $3.7 billion and is projected to reach $9.1 billion in 2029, but 86% of today's revenue comes from real money format games.
Dream Sports is planning to shift its focus to other verticals like FanCode, DreamSetGo, and Dream Game Studios. The company may also explore new game formats for overseas markets. This transition may involve cost-cutting measures, including potential layoffs, as the RMG business employed a significant portion of the firm's workforce.
The new legislation also has implications for advertisers and financial institutions. The bill prohibits advertisements for online money games and restricts banks from processing related transactions. Violators could face imprisonment of up to three years or fines. Celebrities promoting real-money games could face jail time and fines.
The Promotion and Regulation of Online Gaming Bill, 2025, has drawn a sharp line between e-sports and online money games. E-sports, recognized as competitive, skill-based games, are permitted, while online social games without real-money stakes remain legal but require registration.
While the government aims to protect vulnerable individuals from the potential harms of online money games, the industry is concerned about the economic impact of the ban. The ban represents a dramatic shift from collaborative regulation attempts to complete prohibition. The industry will likely seek interim relief and explore alternative regulatory frameworks.
