Fantasy sports platform Dream11 has ceased all of its paid contests, marking a significant shift in its operational model in response to the newly enacted Promotion and Regulation of Online Gaming Law, 2025. This move follows the passage of the bill by the Indian parliament, which effectively bans money-based online games across the country.
The Promotion and Regulation of Online Gaming Bill, 2025, was recently passed by both the Lok Sabha and Rajya Sabha. The bill aims to prohibit online money games that involve betting and wagering of money or anything of monetary value. It also restricts advertisements that promote money-based gaming platforms and bars banks and financial institutions from processing transactions linked to such games. The government has stated that the legislation is designed to curb addiction, financial ruin, and social distress caused by predatory gaming platforms that thrive on misleading promises of quick wealth.
Dream11, a major player in the fantasy sports arena, has responded by transitioning to a free-to-play model. In a statement, the company conveyed its decision to stop all paid contests on the platform and pivot entirely to a free-to-play online social game. Dream11 stated that it respects the law and will fully comply with "The Promotion & Regulation of Online Gaming Law, 2025". The company also noted that it has always been a law-abiding entity and has conducted its business in compliance with the laws.
The impact of the new online gaming law extends beyond Dream11, affecting other major players in the real-money gaming (RMG) sector, including Mobile Premier League (MPL), Zupee, and Gameskraft. These platforms have also reportedly begun suspending contests and paid games on their platforms. The law's reach encompasses not only rummy and poker apps but also fantasy gaming giants, potentially impacting advertising, employment, sports sponsorships, and even GST revenues.
The new law does carve out exceptions for esports and educational games. The government has indicated that it will promote these categories as part of the digital economy. This suggests a strategic direction towards fostering the growth of esports and other non-money-based games in India.
The Indian gaming market has experienced substantial growth in recent years. As of 2024, it stood at USD 3.7 billion and is projected to reach USD 9.1 billion by 2029. India accounts for a significant portion of the global gaming user base and app downloads. The new regulations, while posing challenges for platforms dependent on money-based games, could also open doors for structured growth, investment, and global competitiveness in the Indian esports sector.
The penalties for violating the new law are strict, including fines ranging from ₹50 lakh to ₹2 crore, imprisonment of up to three years, and even potential platform shutdowns. The bill also holds celebrities and influencers accountable, imposing strict penalties on those who endorse or promote illegal betting or gambling platforms.
The move by Dream11 and other RMG platforms to suspend paid contests marks a turning point in India's online gaming industry. The long-term effects of the new law remain to be seen, but it is clear that the regulatory landscape for online gaming in India is undergoing a significant transformation. It is possible that gaming groups may approach the Supreme Court to challenge the ban.
