Mumbai: Startups such as Dream11, Probo, Zupee, Nazara-backed Moonshine Technologies that runs PokerBaazi, Games 24×7, and Mobile Premier League (MPL) are shutting down their main business of real-money online gaming, multiple people familiar with the matter said. This comes after the Rajya Sabha passed a bill to ban online real-money gaming on Thursday.
The Promotion and Regulation of Online Gaming Bill, 2025 was passed by the Lok Sabha a day earlier, and now requires the President’s assent for it to become a law. The legislation bans platforms that allow users to pay entry fees or wager money on fantasy sports, poker, rummy etc.
“There was a townhall yesterday where (Harsh) Jain (founder and CEO of Dream11) addressed the company employees and updated them about the bill’s contours—and that Dream11 will shut down the RMG business to comply with it. The company is likely to now focus on its other verticals for growth,” a person with knowledge of the development said on Wednesday.
“Nazara’s investment in Pokerbaazi, a real-money gaming company, is at risk,” a company executive, who did not want to be identified, said, adding that overall revenues of the parent would be unaffected.
With the ban in India, some like MPL are looking to shift their focus on overseas markets.
“MPL will move its focus to its business in Europe, US and Latam (Latin America) and may redouble focus on its free to play/publishing business in India,” a third person with direct knowledge of the matter said, adding that the industry will challenge this in the court.
“Zupee remains fully operational. In line with the new Online Gaming Bill 2025, we are discontinuing paid games, but free titles like Ludo Supreme, Ludo Turbo, Snakes & Ladders, and Trump Card Mania will continue to be available for all users for free,” a company spokesperson said.
Nazara and MPL did not respond to requests for comment. Dream11 and Games 24×7 declined to comment.
Elevation and Peak XV-backed Probo also faces a similar fate. “As unfortunate as it is, we respect the government of India’s latest online gaming bill. In light of this development, Probo has decided to discontinue its real-money gaming (RMG) operations with immediate effect until further notice. We remain steadfast in our vision to innovate and build information markets from India, for the world.”
These moves come after the Union cabinet on Tuesday cleared the Promotion and Regulation of Online Gaming Bill, 2025, which seeks a complete ban on any game involving money. The bill prohibits not only play but also payments and advertising for services such as fantasy sports apps Dream11 and My11 Circle, online rummy platforms RummyCulture and RummyCircle, and casual games like Pool Champs and Online Carrom.
Nazara’s shares slumped during market hours before recovering to close just 1.3% lower at ₹1,205.60 apiece on the BSE on Thursday.
The company had clarified on Wednesday that it had no direct involvement in the real-money gaming space, although it holds a 46.07% stake in Moonshine Technologies Pvt. Ltd, which runs PokerBaazi. Nazara invested over ₹800 crore in Moonshine through a mix of cash and stock last year, and also holds convertible shares worth ₹255 crore.
Broader impact adverse
The broader impact is adverse as this sector, which employees over 200,000 people, could see a complete overhaul of its operations alongside layoffs and steep pay cuts. The financial impact is also severe as several global investors have over the past five years pumped in a staggering $2.8 billion into India’s real-money gaming market—the largest sub-component of the domestic online gaming sector. However, the real-money gaming market’s growth hinges on resolution of the taxation issues and regulatory clarity.
While Dream11 and Mobile Premier League cornered a bulk of the venture capital money, other companies including FanCraze, and Rario have also raised funds from investors, betting big on India’s gaming sector, show data from Venture Intelligence.
Prominent investors in India’s online gaming space include Tiger Global, TPG, ChrysCapital, Kalaari Capital, DST Global, Alpha Wave Global, RTP Global, Steadview Capital, Lumikai, Peak XV, and Malabar Investments, the data showed.
The Supreme Court is expected to pronounce its decision later this year on whether fantasy sports and online poker and rummy should be treated as games of skill or games of chance or gambling. Its verdict will determine if real-money gaming startups have to pay nearly $20 billion (about ₹1.5 trillion) in retrospective tax claims from the Directorate General of GST Intelligence.
Real-money gaming platforms accounted for nearly two-thirds, or $2.4 billion, of the overall Indian online gaming industry’s $3.8 billion revenue in FY24, according to gaming investment firm Lumikai. Dream11, Gameskraft, and Games24x7 alone accounted for $1.36 billion of the revenue.
‘Prohibition may push industry underground’
Several experts believe that a prohibitionist approach could push legitimate operators underground, reduce tax collections, and stifle innovation in a sector recognized globally for its potential. They have called for a reconsideration of the bill to adopt a more nuanced and consultative approach that distinguishes between games of skill and chance, while ensuring responsible practices.
“We acknowledge the government’s decision to ban real money gaming and fully respect that this step has been taken after careful consideration of the social and regulatory concerns associated with the sector,” said Shweta Rajpal Kohli, president & chief executive of Startup Policy Forum. The forum, which counts Dream11 and Mobile Premier League among its members, is an industry alliance for the new age economy.
“At the same time, we believe India’s gaming industry holds significant potential for innovation, entrepreneurship, and job creation,” she said.
Kohli added that the forum is committed to working constructively with the government to explore regulatory frameworks within and outside this legislation by enabling stakeholder consultations with an aim of balancing responsible innovation with robust consumer protection.