Gaming
India’s gaming giants face extinction as government prepares blanket ban
MUMBAI: India’s booming online gaming sector is bracing for devastation after electronics and information technology minister Ashwini Vaishnaw introduced the Promotion and Regulation of Online Gaming Bill, 2025, in the Lok Sabha on Wednesday. The proposed legislation threatens to outlaw all real-money gaming platforms, regardless of whether they involve skill or chance—a move that could obliterate 86 per cent of the industry’s current revenue streams.
The bill proposes harsh penalties for violators: up to three years imprisonment and fines of Rs 1 crore for operators, and two years jail plus Rs 50 lakh fines for advertisers. Banks and financial institutions facilitating transactions for money games face similar punishment. Repeat offenders could face between three and five years behind bars with higher fines.
Market leaders including Dream11, Games24x7, Winzo, GamesKraft and My11Circle now face an existential crisis. India’s online gaming market, currently valued at $3.7 billion and projected to reach $9.1 billion by 2029, could see its financial lifeline severed overnight.
The All India Gaming Federation, E-Gaming Federation and Federation of India Fantasy Sports have written jointly to home minister Amit Shah, warning that the legislation would “destroy over 200,000 jobs, result in over 400 companies shutting down, and weaken India’s position as a digital innovator.”
The industry argues that legitimate platforms will be forced to close, pushing crores of users towards illegal matka networks, offshore gambling sites and unregulated operators. The sector has grown into a Rs 2 trillion industry, generating Rs 31,000 crore in annual revenue and over Rs 20,000 crore in taxes whilst expanding at 20 per cent compound annual growth rate.
The bill defines an online money game as one where users pay fees or deposit money “in expectation of winning in return of money or other stake.” It explicitly excludes esports and online social games such as casual entertainment formats without monetary stakes. A proposed Online Gaming Authority would determine whether games qualify as money games and oversee the sector.
MeitY secretary S Krishnan said the legislation aims to recognise the industry’s creative intent whilst restricting undesirable segments. The government cited instances of severe financial distress and suicides linked to online money gaming during cabinet deliberations, noting particular concerns about addiction among children and youth.
The move represents a decisive shift from tax-and-regulate to prohibit-and-enforce. Authorities have already imposed a 28 per cent goods and services tax on gaming revenues since October 2023, followed by a 30 per cent tax on net winnings from FY 2024-25. Over 1,400 illegal betting and gambling sites have been blocked since 2022.
Players themselves will not face criminalisation under the proposed law, being treated as victims rather than offenders. Free-to-play and subscription-based games where users pay fixed fees without wagering during gameplay will remain permissible.
Industry insiders warn the legislation could violate constitutional principles whilst strengthening illegal offshore operators—described as “one of the biggest national security threats to the country today.” India’s gamer base has grown from 360 million in 2020 to over 500 million in 2024, with foreign direct investment in the sector crossing Rs 25,000 crore by June 2022.
The Lok Sabha session was adjourned until 2pm shortly after the bill’s introduction amid opposition protests, leaving the industry’s fate hanging in the balance.
Gaming
Dream Sports sees 100 plus exits after gaming ban forces overhaul
Company splits into eight units as real money gaming law hits revenue.
MUMBAI: For a company built on fantasy leagues, reality has suddenly rewritten the rulebook. More than 100 employees have exited Dream Sports, the parent of Dream11, after the company reorganised its operations following India’s ban on real money online gaming. The shake up came after the Promotion and Regulation of Online Gaming Act, 2025 came into force in August 2025, prohibiting games where users deposit money expecting winnings. The regulation struck at the heart of the fantasy gaming industry and dramatically affected Dream Sports’ core business, wiping out about 95 percent of its revenue and all of its profits.
In response, the Mumbai based company shifted into what chief executive officer Harsh Jain described as “startup mode”, splitting its operations into eight independent business units in December.
Around 700 employees were reassigned across these newly formed ventures based on their experience and interests. However, roughly 15 percent opted to leave the company.
A spokesperson for Dream Sports said many of those who exited were experienced professionals accustomed to running scaled businesses rather than early stage ventures.
“Since some of these employees were experienced with running high scale businesses and not startups, around 15 percent chose to leave and join other scaled companies or start ventures of their own,” the spokesperson said.
Despite the departures, the company noted that the attrition rate is only slightly higher than its earlier level of around 10 percent before the ban. Dream Sports now has close to 950 employees and is not currently hiring, choosing instead to focus on stabilising its existing workforce.
The restructuring has transformed Dream Sports from a fantasy gaming company into a broader sports entertainment platform. The eight units now operate independently, each focusing on different segments of the sports and technology ecosystem.
These include Dream11, sports streaming platform Fancode, sports travel service DreamSetGo, mobile game Dream Cricket and artificial intelligence initiative Dream Sports AI, which includes sports analytics platform Dream Play.
Other ventures include fintech product Dream Money, open source initiative Dream Horizon and the philanthropic arm Dream Sports Foundation.
As part of cost saving efforts, Dream Sports also relocated its headquarters from Bandra Kurla Complex to Worli earlier this year. The new office, called Dream Sports Stadium, brings teams from its various brands together under one roof to improve collaboration and operational efficiency.
Jain had earlier said the company removed bonus lock in timelines for employees hired in recent years, allowing those who wished to leave to exit with pro rata payouts.
“We want people who are fully into the startup mode and willing to work for it, and we will share that reward if it comes,” he said.
Founded in 2008 by Harsh Jain and Bhavit Sheth, Dream Sports was last valued at 8 billion dollars after raising 840 million dollars in 2021 from investors including Falcon Edge Capital, DST Global, D1 Capital Partners, RedBird Capital Partners, Tiger Global Management, TPG and Footpath Ventures.
The new gaming law has forced several companies in the fantasy gaming sector to either shut down or pivot their business models, signalling a significant reset for one of India’s fastest growing digital entertainment industries.
