Major Gaming Platforms Shut Down as India Bans Real-Money Games

Major gaming companies are shutting down operations across India as new regulations take effect. The ban on Indian real-money gaming apps has created widespread disruption in the country’s digital entertainment industry, according to TechCrunch.

On Thursday, August 21, 2025, the upper house of the Indian Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025. The bill seeks to ban real-money gaming while promoting casual online games and esports. It cleared the lower house a day earlier and now only received presidential approval on Friday, August 22, 2025.

India’s real-money gaming startups are valued at about $23 billion and generate annual revenues of $3.6 billion, while contributing nearly $2.29 billion in taxes, according to industry body estimates shared with the Prime Minister and Home Minister this week. The sector is projected to grow at 28% CAGR, potentially doubling by 2028.

Regulatory Crackdown Intensifies

The ban on real-money gaming in India in 2025 represents the government’s strongest action yet against online gambling activities. Authorities cite concerns about addiction, financial fraud, and social harm as primary reasons for the restrictions.

State governments across India have been implementing similar bans throughout the year. The coordinated approach suggests a nationwide shift in policy toward stricter gaming regulations.

Law enforcement agencies have also increased scrutiny of gaming companies operating in gray areas. Many platforms that previously operated legally now find themselves facing potential legal challenges.

Fantasy Sports Industry Hit Hard

The fantasy sports ban in India has particularly impacted companies like Dream Sports, which operates the popular Dream11 platform. Fantasy sports had been one of the fastest-growing segments in India’s digital economy.

Dream Sports reported having over 140 million registered users before the ban took effect. The company generated significant revenue through entry fees and advertising partnerships with major sports leagues.

The ban covers all forms of fantasy cricket, football, and other sports that involve monetary transactions. Users can no longer participate in paid contests or win cash prizes through skill-based gaming. Dream Sports, Zupee and Mobile Premier League (MPL) are among the biggest names pulling out of the Indian market. These companies built massive user bases over several years before the regulatory crackdown began.

A Zupee spokesperson said in a statement, “In line with the new Online Gaming Bill 2025, we are discontinuing paid games, but our hugely popular free titles like Ludo Supreme, Ludo Turbo, Snakes & Ladders, and Trump Card Mania will continue to be available for all users for free.“

Legal Framework Changes

The online gaming law in India, which bans real-money apps, has created a complex regulatory environment for gaming companies. Different states have implemented varying degrees of restrictions, making compliance extremely difficult.

Some companies have attempted to modify their business models to comply with new regulations. However, most have found it impossible to operate profitably without real -money transactions.

Legal experts suggest the current framework leaves little room for companies to continue operations. The broad definition of prohibited activities covers most forms of competitive gaming that involve monetary stakes.

A public expert said, “This assessment is accurate — they will have a tough fight in the Supreme Court.”

Industry Impact and Job Losses

India’s online gaming regulation impacts more than individual companies. Thousands of employees across the gaming sector are losing their jobs as companies shut down operations.

India’s gaming industry has become a significant employer in the country’s technology sector. Many startups and established companies have invested heavily in building gaming platforms and hiring skilled developers.

Advertising revenues for sports broadcasters and content creators have also declined significantly. Many influencers and content creators built their careers around gaming content and sponsorships.

One employee said, “We no longer have a secure job, as these companies are expected to cut some roles in the coming days to sustain their business and satisfy investors.“

Companies Scramble for Solutions

MPL and other gaming platforms are exploring alternative business models that comply with new regulations. Some companies are considering offering free-to-play games without monetary rewards.

International expansion has become a priority for many Indian gaming companies. Platforms are redirecting their focus toward markets with more favorable regulatory environments.

Several companies are also investing in non-gaming digital entertainment products. The shift represents a major strategic pivot for businesses that built their success around gaming.