Top Indian startups in the real-money gaming space have begun shutting down operations after New Delhi effectively banned the sector through new legislation that is now on the verge of becoming law.
On Thursday, the upper house of the Indian Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025. The bill proposes a complete ban on real-money gaming while aiming to promote casual online games and esports. The vote came just a day after the bill cleared the lower house, leaving only presidential assent before it becomes law, a formality expected to happen soon.
Shortly after the bill passed in Parliament, Indian unicorns Dream Sports and Mobile Premier League, along with other startups like Gameskraft, Probo, and Zupee, began shutting down their real-money gaming operations. Some of these companies informed employees of their decision following the bill’s passage in the lower house on Wednesday, while others began notifying users directly through their apps.
Dream Sports, which counts investors including Tiger Global, Multiples, Alpha Wave Global, and TCV, has shut down its recently launched quick-play fantasy gaming app, Dream Picks. Its other apps involving real-money transactions, including the widely-popular Dream11 and Dream Play, were still operational at the time of filing. However, it has been learned that the Mumbai-based startup plans to shut down its real-money gaming business entirely once the legislation comes into effect.
At a town hall meeting on Wednesday, the startup informed its employees about the implications of the law. Dream Sports was also planning to expand outside India and had some partnership talks for its Indian real-money business earlier this week that were about to be finalized. A Dream Sports spokesperson declined to comment.
Similar to Dream Sports, MPL, backed by investors including Peak XV, Times Internet, MSA Novo, and Crown Capital, has suspended all real-money games and is no longer taking deposits. A notification on the MPL app stated that deposit cash minus GST would be available for withdrawal from August 22, 2025.
Zupee, backed by investors including WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, and Z47, has also shut down real-money games with immediate effect. A Zupee spokesperson stated that in line with the new bill, the company is discontinuing paid games, but its popular free titles will continue to be available for all users for free.
Probo, another Peak XV-backed startup which also counts Elevation Capital and The Fundamentum Partnership among its key investors, stopped its real-money gaming operations after Parliament greenlit the legislation. The Gurugram-based startup said it respects the government’s decision and has discontinued its operations with immediate effect until further notice.
Bootstrapped startup Gameskraft has also stopped accepting money on its rummy apps as a result of the legislation. Similarly, Times Internet-owned fantasy cricket game Cricbuzz11 has discontinued its operations, notifying users that deposits net of GST will be refunded to their bank accounts within 30 days.
In addition to the shutdown of real-money gaming operations, many employees at these startups have begun searching for new jobs, with hundreds posting about their job hunt on social media. One employee stated that they 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.
Even though these startups could challenge the law in the Indian Supreme Court once it comes into effect, most have chosen not to pursue that route. A public policy expert working with some of these startups stated that such a challenge would be a tough fight in the Supreme Court.
Real-money gaming startups in India have a combined enterprise valuation of approximately 2 trillion rupees, or 23 billion dollars. They generate cumulative revenues of around 310 billion rupees, or 3.6 billion dollars, and contribute roughly 200 billion rupees, or 2.29 billion dollars, annually in direct and indirect taxes according to estimates cited by industry bodies. They also project a 28 percent compound annual growth rate that would double the industry’s size by 2028.