India’s Real Money Gaming Ban Drives Industry Pivot

In August 2025, the government passed the Online Gaming Bill, prohibiting all online games involving monetary deposits with the expectation of winnings. This legislative move effectively reset a digital sector valued at more than $3.7 billion, which supported over 1.5 million jobs and contributed significantly to the country’s digital advertising ecosystem. While operations for RMG companies have been drastically limited, leading businesses are adopting new strategies to remain relevant, including expansions into finance, entertainment, and platform-based gaming models.

The regulatory changes impacting the RMG sector did not arrive without warning. A 28 percent GST on RMG, imposed in 2023, had already put significant pressure on margins, leading to layoffs and affecting profitability. Additional fragmentation resulted from state-level bans in places such as Tamil Nadu and Telangana, with legal decisions often upholding restrictions on games based on the distinction between skill and chance. The Online Gaming Bill, receiving presidential approval on August 22, 2025, established a nationwide prohibition on all RMG activities. Supporters of the bill cite consumer protection and reduced risk of addiction as primary benefits. Industry observers have, however, noted the substantial impact on jobs, advertising spends, and the large volume of venture capital invested in the sector.

The economic effects extend to digital advertising, with RMG firms previously spending almost INR 17,000 crore annually on marketing. Several companies have responded by refunding user deposits and revising operational plans. The sector is now seeking new opportunities amid these changes.

Dream Sports is Exploring Fintech and Global Expansion

Dream Sports, the parent company of Dream11, had historically relied on paid fantasy sports contests for a substantial portion of its revenue, which recently totaled more than INR 6,300 crore. In response to the new regulations, Dream11 has disabled all paid contests, transitioning its platform to focus on social and free-to-play formats. Other properties such as Dream Picks have been either discontinued or repurposed.

Dream Sports also introduced "Dream Money," a personal finance application currently being piloted in the market. The app enables users to invest in digital gold, fixed deposits, and systematic investment plans, tapping into the company’s extensive user base of over 200 million. In addition to fintech, Dream Sports continues to invest in non-gaming assets such as FanCode and is looking towards international expansion to diversify its business.

WinZO is Moving into Short-Form Content and New Markets

WinZO, previously known for combining casual gaming with RMG, has also adjusted its approach. Following the implementation of the ban, WinZO launched ZO TV, an in-app short-video platform that offers "micro dramas" in various genres, including romance and fantasy. Early episodes are provided free, with a pay-per-episode model used for additional content. These changes are designed to compete in India’s growing short-form video market.

At the same time, WinZO is expanding internationally, currently active in markets including Brazil and the United States. Its new subscription-based offerings and partnerships aim to position the company as a diverse platform for mobile entertainment, not limited to gaming alone.

MPL is Promoting Creator Tools and Global Free-to-Play Games

Mobile Premier League (MPL), which previously offered a large array of money-based games, suspended these services in response to regulatory requirements. MPL had already begun to diversify before the ban, with nearly half of its revenue now originating from international markets. The company is focusing on a creator-first approach through Blast+, its new developer toolkit for releasing and monetizing games. The shift is toward puzzle games, board games, and other free-to-play models that do not involve monetary stakes. These efforts coincide with increased investment in international markets and further development of in-house technologies and studio partnerships.

Other Players

RummyCircle (Games24x7), Head Digital Works, and Junglee Games have halted operations and are yet to make a move. As the regulatory landscape changes, the sector is witnessing substantial business model innovation and the prioritization of skill-based play, entertainment, and financial services.

While there is ongoing debate about the societal benefits and costs of these regulatory actions, industry adaptation remains evident. The next phase for India’s digital entertainment sector is likely to be defined by innovation and international collaboration.