Dream11, Games 24×7, MPL hit as parliament clears invoice to ban real-money gaming

The Promotion and Regulation of Online Gaming Bill, 2025 was handed by the Lok Sabha a day earlier, and now requires the President’s assent for it to grow to be a regulation. The laws bans platforms that permit customers to pay entry charges or wager cash on fantasy sports activities, poker, rummy and many others.

“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,” an individual with information of the event stated on Wednesday.

“Nazara’s investment in Pokerbaazi, a real-money gaming company, is at risk,” an organization govt, who didn’t wish to be recognized, stated, including that total revenues of the mum or dad could be unaffected.

With the ban in India, some like MPL want to shift their focus to abroad markets.

“MPL will transfer its focus to its enterprise in Europe, US and Latam (Latin America) and should redouble give attention to its free to play/publishing enterprise in India,” a 3rd particular person with direct information of the matter stated, including that the trade will problem this within the court docket.

In an announcement, MPL stated it’ll comply absolutely with the ban on on-line cash video games in India. “Effective immediately, we are suspending all gaming offerings involving money on the MPL platform in India,” it stated.

“Our foremost precedence is our customers. While new deposits will now not be accepted, prospects will have the ability to withdraw their balances seamlessly. However, on-line cash video games is not going to be accessible on the MPL platform anymore…”

MPL stated it’ll proceed to supply aggressive, free to play, non-money-based gaming experiences to its prospects in India.

“Zupee stays absolutely operational. In line with the brand new Online Gaming Bill 2025, we’re discontinuing paid video games, however free titles like Ludo Supreme, Ludo Turbo, Snakes & Ladders, and Trump Card Mania will proceed to be accessible for all customers without cost,” an organization spokesperson stated.

Nazara didn’t reply to requests for remark. Dream11 and Games 24×7 declined to remark.

Elevation and Peak XV-backed Probo additionally faces the same destiny. “As unlucky as it’s, we respect the federal government of India’s newest on-line gaming invoice. In gentle of this growth, Probo has determined to discontinue its real-money gaming (RMG) operations with fast impact till additional discover. We stay steadfast in our imaginative and prescient to innovate and construct data markets from India, for the world.”

These strikes come after the Union cupboard on Tuesday cleared the Promotion and Regulation of Online Gaming Bill, 2025, which seeks a whole ban on any recreation involving cash. The invoice prohibits not solely play but in addition funds and promoting for companies corresponding to fantasy sports activities apps Dream11 and My11 Circle, on-line rummy platforms RummyCulture and RummyCircle, and informal video games like Pool Champs and Online Carrom.

Nazara’s shares slumped throughout market hours earlier than recovering to shut simply 1.3% decrease at ₹1,205.60 apiece on the BSE on Thursday.

The firm had clarified on Wednesday that it had no direct involvement within the real-money gaming house, though it holds a 46.07% stake in Moonshine Technologies Pvt. Ltd, which runs PokerBaazi. Nazara invested over ₹800 crore in Moonshine by means of a mixture of money and inventory final yr, and in addition holds convertible shares value ₹255 crore.

Broader impression adversarial

The broader impression is adversarial as this sector, which staff over 200,000 folks, may see a whole overhaul of its operations alongside layoffs and steep pay cuts. The monetary impression can also be extreme as a number of world traders have over the previous 5 years pumped in a staggering $2.8 billion into India’s real-money gaming market—the most important sub-component of the home on-line gaming sector. However, the real-money gaming market’s progress hinges on decision of the taxation points and regulatory readability.

While Dream11 and Mobile Premier League cornered a bulk of the enterprise capital cash, different corporations together with FanCraze, and Rario have additionally raised funds from traders, betting huge on India’s gaming sector, present knowledge from Venture Intelligence.

Prominent traders in India’s on-line gaming house embody Tiger Global, TPG, ChrysCapital, Kalaari Capital, DST Global, Alpha Wave Global, RTP Global, Steadview Capital, Lumikai, Peak XV, and Malabar Investments, the information confirmed.

The Supreme Court is anticipated to pronounce its resolution later this yr on whether or not fantasy sports activities and on-line poker and rummy needs to be handled as video games of talent or video games of probability or playing. Its verdict will decide if real-money gaming startups must pay practically $20 billion (about ₹1.5 trillion) in retrospective tax claims from the Directorate General of GST Intelligence.

Real-money gaming platforms accounted for practically two-thirds, or $2.4 billion, of the general Indian on-line gaming trade’s $3.8 billion income in FY24, in keeping with gaming funding agency Lumikai. Dream11, Gameskraft, and Games24x7 alone accounted for $1.36 billion of the income.

‘Prohibition could push trade underground’

Several consultants consider {that a} prohibitionist method may push reputable operators underground, cut back tax collections, and stifle innovation in a sector acknowledged globally for its potential. They have known as for a reconsideration of the invoice to undertake a extra nuanced and consultative method that distinguishes between video games of talent and probability, whereas making certain accountable practices.

“We acknowledge the federal government’s resolution to ban actual cash gaming and absolutely respect that this step has been taken after cautious consideration of the social and regulatory considerations related to the sector,” stated Shweta Rajpal Kohli, president & chief govt of Startup Policy Forum. The discussion board, which counts Dream11 and Mobile Premier League amongst its members, is an trade alliance for the brand new age economic system.

“At the identical time, we consider India’s gaming trade holds vital potential for innovation, entrepreneurship, and job creation,” she stated.

Kohli added that the discussion board is dedicated to working constructively with the federal government to discover regulatory frameworks inside and outdoors this laws by enabling stakeholder consultations with an intention of balancing accountable innovation with strong shopper safety.