India’s Real-Money Gaming Freeze Triggers Massive Losses

India’s real-money gaming (RMG) industry is spiraling into one of its largest downturns, as companies, investors and payment partners absorb escalating damage caused by a nationwide ban that remains stuck in regulatory limbo. The Promotion and Regulation of Online Gaming Act 2025 was fast-tracked through parliament in August and signed into law by President Droupadi Murmu just three days later, yet the government has still not issued the notification required to bring the law into effect.

A Rapid Ban Followed by Months of Paralysis

Once notified, the act will prohibit all money-based online games, covering everything from poker and rummy to fantasy sports, without distinguishing between games of skill and chance. It simultaneously endorses esports, educational games and social gaming. Penalties include fines up to Rs21 crore (US$113,000) and prison terms of up to three years for operators and endorsers, though players face no punishment.

Proponents of the ban say it was necessary to address the risks of gambling. Technology Minister Ashwini Vaishnaw argued that RMG platforms “exploit users with false promises of profit,” adding the law “avoids a big evil that is creeping into society.”

Opponents argue the abrupt transition has destabilized the sector. Jaya Chahar of JCDC Sports said the prohibition “pushes fan engagement away from regulated Indian platforms into unregulated offshore spaces, which defeats the very intent of consumer protection.” Former Dream11 communications officer Smrita Singh Chandra criticized the “overnight ban” implemented “without transition, nuance or consideration of economic realities,” writing: “Declaring a platform illegal after years of validation, taxation and judicial recognition isn’t just wrong. It is deeply unethical.”

Billions Lost Even Before Enforcement

Despite the lack of notification, uncertainty alone has produced widespread financial fallout. Storyboard18 reports more than Rs70 billion ($840 million) in asset write-downs among listed companies, with total revenue losses now exceeding Rs100 billion ($1.2 billion). The government is also facing an estimated Rs56 billion ($670 million) shortfall from GST, TDS and income-tax revenues.

The consequences are visible across corporate earnings. Flutter Entertainment recorded a $556 million impairment tied to Junglee Games. Nazara Technologies wrote down Rs9.15 billion ($110 million) on PokerBaazi-owner Moonshine Technologies. Clairvest Group reported a Rs7.6 billion ($92 million) unrealized loss, while Delta Corp marked Rs3.8 billion ($46 million) in impairments across multiple holdings.

Fintech partners have seen parallel damage. Net profit Paytm sank 98 percent after taking a Rs1.9 billion ($23 million) impairment linked to First Games Technology. Mobikwik posted an eightfold loss increase, and NPCI data shows gaming-related UPI transactions dropped from 351 million in July to 270 million in August.

Widespread Shutdowns and Investor Concerns

Within days of the bill’s passage, Dream11, MPL, Zupee, WinZO and Gameskraft suspended all cash-based formats, while Hike shut down its RMG app Rush entirely. Nearly 7,000 workers across operations, technology and support roles have been laid off.

Technology lawyer Jay Sayta criticized the government’s delay, noting that penalties “cannot legally be imposed” until the act is notified. Attorney Probir Roy Chowdhury warned the reversal from earlier self-regulation frameworks signals “significant regulatory risk” to investors.

Before the ban, India’s RMG sector contributed nearly Rs20,000 crore (US$42.256 billion) in annual taxes and supported around 20,000 jobs — underscoring the scale of disruption now facing the industry.

Source:

“India’s real-money gaming industry loses over $840M amid regulatory limbo: report”, agbrief.com. November 17, 2025