India’s Real-Money Gaming Ban Sparks Massive Losses

India’s real-money gaming (RMG) market has entered one of its most turbulent periods in years, with financial damage mounting across domestic and international operators. The disruption began after the government rapidly pushed through the Promotion and Regulation of Online Gaming Bill 2025, prompting a nationwide halt of money-based online games, even though the law still awaits formal enforcement. Over the past three months, companies have recorded more than $840 million in write-downs while thousands of employees have lost their jobs.

The bill passed at remarkable speed in late August. Parliament approved the measure on 21 August, and three days later President Droupadi Murmu signed the legislation into law. The act blocks any online platform that offers paid games, whether rooted in chance or designed around skill—poker, rummy, fantasy sports and similar formats all fall under the prohibition. Only esports, educational titles and social gaming are encouraged under the new framework.

Although the statute outlines penalties of up to Rs21 crore and potential prison terms reaching three years for violators, the government has not yet issued the notification required to activate enforcement. Celebrities and influencers endorsing money-based games also face legal risk, but players themselves do not. India Technology Minister Ashwini Vaishnaw argued that RMG operators “exploit users with false promises of profit” and insisted that the act “avoids a big evil that is creeping into society”.

Industry leaders countered that the sudden ban has pushed users toward offshore operators outside India’s oversight. Jaya Chahar of JCDC Sports remarked that the move “pushes fan engagement away from regulated Indian platforms into unregulated offshore spaces, which defeats the very intent of consumer protection”. Smrita Singh Chandra, formerly of Dream11, criticized the “overnight ban” and wrote, “Declaring a platform illegal after years of validation, taxation and judicial recognition isn’t just wrong. It is deeply unethical.”

The economic consequences have been severe. According to figures cited across quarterly earnings, Flutter Entertainment wrote down $556 million following the shutdown of its Junglee Games unit. Nazara Technologies reported an impairment of Rs9.15 billion tied to Moonshine Technologies, while Clairvest marked an unrealized loss of Rs7.6 billion. Delta Corp also reduced asset values across several affiliated gaming companies.

The wider financial ecosystem has felt the strain as well. Paytm’s impairment related to First Games Technology contributed to a 98 percent drop in net profit. Mobikwik reported an eightfold rise in losses, and UPI payment volumes connected to gaming slid from 351 million in July to 270 million in August. Leading platforms including Dream11, MPL, Zupee, WinZO, Gameskraft and Hike shut down cash-gaming modes within days of the bill’s passage.

Industry analysts estimate that listed companies alone have written off more than Rs70 billion, while total revenue losses have surpassed Rs100 billion. The government is projected to lose approximately Rs56 billion in GST, TDS and income-tax revenue. About 7,000 employees across operations, technology and support roles have been laid off.

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Legal experts warn that the prolonged delay in notifying the law is compounding uncertainty. Technology lawyer Jay Sayta said, “It is surprising that the government, which passed the legislation with alacrity—completing the entire process from cabinet approval to presidential assent in less than 96 hours—is now unable to issue a notification appointing a date to bring the law formally into force for the last three months.” He added that banks are still permitted to serve gaming companies until notification is issued, after which operators “would immediately have to cease all operations.”

Media and technology attorney Probir Roy Chowdhury expressed concern that the shift away from earlier plans for self-regulation could deter future investment, saying the reversal signals that policymakers may “arbitrarily dismantle a thriving sector, creating significant regulatory risk”.

Prior to the shutdown, India’s RMG market reportedly contributed around Rs20,000 crore annually in tax revenue and supported nearly 20,000 direct and indirect jobs. For now, the industry remains in limbo as companies await the government’s decision on when enforcement will officially begin.

Source:

, agbrief.com, November 17, 2025.