As India bans real-money video games, Dream Sports, MPL begin pulling the plug

Top Indian startups within the real-money gaming area have begun shutting down operations after New Delhi successfully banned the sector by way of new laws that’s now on the verge of turning into legislation.

On Thursday, the higher home of the Indian Parliament handed the Promotion and Regulation of Online Gaming Bill, 2025 — proposing to fully ban real-money gaming whereas aiming to advertise informal on-line video games and esports. The vote got here only a day after the invoice cleared the decrease home, leaving solely presidential assent earlier than it turns into legislation — a formality anticipated to occur quickly.

Shortly after the invoice handed in Parliament, Indian unicorns Dream Sports and Mobile Premier League (MPL) — together with different startups like Gameskraft, Probo, and Zupee — started shutting down their real-money gaming operations. Some of those corporations knowledgeable staff of their determination following the invoice’s passage within the decrease home on Wednesday, whereas others started notifying customers straight by way of their apps.

Dream Sports, which counts traders together with Tiger Global, Multiples, Alpha Wave Global, and TCV, has shut down its just lately launched quick-play fantasy gaming app, Dream Picks. Its different apps involving real-money transactions, together with the widely-popular Dream11 and Dream Play, have been nonetheless operational on the time of submitting. However, TechCrunch has realized that the Mumbai-based startup plans to close down its real-money gaming enterprise completely as soon as the laws comes into impact.

At its city corridor assembly on Wednesday, the startup knowledgeable its staff in regards to the implications of the legislation, an individual acquainted with the matter informed TechCrunch, requesting anonymity because the assembly was inner. Indian web site Entrackr reported some particulars in regards to the assembly earlier.

Dream Sports was planning to develop outdoors India, two folks aware of the data knowledgeable TechCrunch, on situation of sharing it anonymously, because the plan was not public.

The startup additionally had some partnership talks for its Indian real-money enterprise earlier this week that have been about to be finalized, an investor supply informed TechCrunch.

A Dream Sports spokesperson declined to remark.

Similar to Dream Sports, MPL, backed by traders together with Peak XV, Times Internet, MSA Novo, and Crown Capital, has suspended all real-money video games and is now not taking deposits.

“Deposit cash (minus GST) will be available for withdrawal from 22 Aug. 2025,” a notification on the MPL app reads.

Zupee, backed by traders together with WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, and Z47 (previously Matrix Partners India), has additionally shut down real-money video games with speedy impact.

“In line with the new Online Gaming Bill 2025, we are discontinuing paid games, but our hugely popular free titles like Ludo Supreme, Ludo Turbo, Snakes & Ladders, and Trump Card Mania will continue to be available for all users for free,” a Zupee spokesperson stated in a press release.

Probo, one other Peak XV-backed startup, which additionally counts Elevation Capital and The Fundamentum Partnership amongst its key traders, stopped its real-money gaming operations after Parliament greenlit the laws.

“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,” the Gurugram-based startup stated.

Bootstrapped startup Gameskraft has additionally stopped accepting cash on its rummy apps because of the laws. Similarly, Times Internet-owned fantasy cricket sport Cricbuzz11 has discontinued its operations.

“Deposits (net of GST) will be refunded to bank account within 30 days,” the app says on a discover to customers.

In addition to the shutdown of real-money gaming operations, many staff at these startups have begun looking for new jobs, with tons of posting about their job hunt on social media.

“We 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,” one worker, who requested anonymity for worry of jeopardizing future alternatives, informed TechCrunch.

Even although these startups may problem the legislation within the Indian Supreme Court as soon as it comes into impact, most have chosen to not pursue that route.

“This assessment is accurate — they will have a tough fight in the Supreme Court,” a public coverage knowledgeable working with a few of these real-money gaming startups informed TechCrunch, requesting anonymity for worry of dropping shoppers.

Real-money gaming startups in India have a mixed enterprise valuation of ₹2 trillion (roughly $23 billion), generate cumulative revenues of ₹310 billion (round $3.6 billion), and contribute ₹200 billion (roughly $2.29 billion) yearly in direct and oblique taxes, per estimates cited by trade our bodies of their letters to the Indian Prime Minister and Home Minister earlier this week. They additionally mission a 28% compound annual development price that may double the trade’s measurement by 2028.

This Bill, handed by each Houses of Parliament, highlights our dedication in direction of making India a hub for gaming, innovation and creativity. It will encourage e-sports and on-line social video games. At the identical time, it’s going to save our society from the dangerous results of on-line cash… https://t.co/t1iUuH9JP1

— Narendra Modi (@narendramodi) August 21, 2025

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