India’s booming real-money gaming industry has hit a major roadblock after the Indian Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, which effectively bans all forms of paid gaming. The legislation, now awaiting presidential assent, is expected to become law within days — marking the most disruptive moment in the history of India’s online gaming market.
The bill aims to promote esports and casual online games while completely restricting real-money gaming (RMG) activities. Within hours of the bill’s passage, leading startups including Dream Sports, Mobile Premier League (MPL), Zupee, Probo, Gameskraft, and Cricbuzz11 began pulling the plug on their cash-based gaming operations. Notifications on apps warned users that deposits are no longer being accepted, while refund mechanisms were activated to return pending balances.
For instance, MPL issued an in-app notice clarifying that deposit cash minus GST would be available for withdrawal starting August 22, 2025. Similarly, Gameskraft’s Rummy platforms announced refunds within 30 days, while Zupee reassured users that its free-to-play titles like Ludo Supreme and Snakes & Ladders would remain unaffected.
Dream Sports, backed by heavyweight investors like Tiger Global and Alpha Wave Global, has already shut down its Dream Picks app and hinted at a full withdrawal from the RMG segment once the law takes effect. Its flagship Dream11 fantasy platform, widely considered the face of India’s gaming economy, remains operational for now, but industry insiders suggest that a complete exit is imminent. At a recent internal town hall meeting, Dream Sports reportedly informed employees about the regulatory shift and warned of organizational restructuring.
Interestingly, Dream Sports had been exploring global expansion opportunities and even engaging in new partnerships for its Indian RMG business days before the legislation. Those plans have now collapsed.
The ban is already triggering a wave of job insecurity across the sector. Hundreds of employees have taken to LinkedIn and X (formerly Twitter) to announce job hunts, citing fears of large-scale layoffs. A public policy expert consulting with affected startups admitted that while these companies could challenge the law in the Supreme Court, most are hesitant given the political weight behind the legislation.
The stakes are enormous: India’s real-money gaming startups collectively boast a valuation of ₹2 trillion ($23 billion), generate annual revenues of ₹310 billion ($3.6 billion), and contribute nearly ₹200 billion ($2.29 billion) in taxes. Industry bodies had lobbied for reconsideration, pointing to a projected 28% CAGR that could double industry size by 2028. The bill’s passage has now put all these forecasts in jeopardy.
Supporters of the ban argue that real-money gaming fuels addiction, financial losses, and regulatory loopholes, while advocates counter that India is shutting down a thriving digital industry instead of regulating it. With unicorns like Dream Sports and MPL retreating, investors will likely redirect capital toward esports, casual gaming, and international markets where regulatory landscapes are more favorable.
The Online Gaming Bill 2025 has fundamentally altered the trajectory of India’s gaming ecosystem. What was once a multi-billion-dollar industry poised for exponential growth is now being dismantled at legislative speed. While Dream Sports, MPL, Zupee, and others may survive by pivoting to free games or overseas markets, India’s real-money gaming era appears to be ending before it reached its peak.
