India Real-Money Gaming Ban Hits Dream11, Nazara Tech, MPL; Shares Drop Amid $25B Industry Risk
- 20th August 2025
- 03:30:00 PM
- 3 min read
Mumbai | August 20 – India’s $25-billion real-money gaming (RMG) industry is on high alert as the government’s Promotion and Regulation of Online Gaming Bill 2025 threatens to upend one of the country’s fastest-growing digital sectors. The proposed legislation, introduced in the Lok Sabha on August 20 after Cabinet clearance, prohibits online money games and their promotion—prompting a sharp market reaction.
As on 2:45 pm today, Shares of Nazara Technologies fell over 10% to ₹1,253, Delta Corp slid 6.75% to ₹86.61min early trades today, and other listed platforms including Dream11 and MPL saw investor caution. The bill stipulates penalties of up to three years’ imprisonment or fines up to ₹1 crore for violations, with stricter rules for repeat offenders.
Industry experts warn that a blanket ban could backfire. Players may flock to illegal offshore platforms, matka operators, and unregulated apps—siphoning off revenue while undermining tax collections and digital sovereignty. Estimates put GST losses from offshore operators at over $4 billion, surpassing the $3.5 billion revenue generated by India’s domestic RMG sector, which contributes more than Rs 25,000 crore annually in taxes.
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Key players like Dream11, Games24x7, Gameskraft, Mobile Premier League (MPL) and WinZO have flagged the risks. Financially, the sector is robust:
- Gameskraft: Rs 947 crore profit on Rs 3,475 crore revenue (FY24)
- Dream11: Rs 188 crore net profit on Rs 6,384 crore revenue (FY23)
- WinZO: revenue up 70% to Rs 1,055 crore; profit up 151% to Rs 315 crore (FY24)
- Zupee: turned Rs 36 crore loss into Rs 146 crore profit (FY24)
The sector has drawn $3 billion in FDI, but policy unpredictability risks investor pullback. The Supreme Court is reviewing whether online gaming falls under state or central jurisdiction and whether skill-based games played for stakes constitute gambling.
The bill differentiates money gaming from eSports and online social games, promoting formal recognition of eSports in India—seen as a potential growth lever for startups and global competitiveness. The law also shields players from prosecution, targeting only promoters, advertisers, and financial facilitators.
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Analysts warn that the proposed ban could inadvertently strengthen illegal platforms, reduce tax revenue, and compromise India’s digital gaming leadership. With investors pricing in regulatory risk, the RMG sector faces a critical crossroads: regulatory compliance versus sustaining rapid growth in a $25-billion market.
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