The odds were always quite high that real money gaming (RMG), which had been promoting financially ruinous behaviour, would one day face the axe. So how is the RMG segment, which generated revenues of around $2.4 billion in 2024 and supported over 1 lakh jobs (according to a Lumikai report), navigating the future post its ban?

For now, it appears the industry is down, but not out. Harsh Jain, Founder of India’s most profitable gaming group Dream Sports (₹6,384 crore revenue in FY23), took it on the chin, calling himself a “delusional optimistic”. From taking legal recourse to pivoting to new markets or permissible arenas, RMG players are exploring options.

The Regulation and Promotion of Online Gaming Bill, which got the President’s nod on August 22, aims to regulate e-sports and online social games while banning online games involving real money. It differentiates between games of skill and games of chance, clarifying that e-sports will be promoted.

Those hit include RMG companies, investors ($2.8 billion funding in the last five years), the government (annual GST revenue loss of ₹15,000-20,000 crore), broadcasters (JioHotstar faces a dip in IPL sponsorship), and the advertising industry (estimated revenue loss of over ₹2,000 crore).

Dream Sports said the ban would erode around 95 per cent of its revenue. On the other hand, Nazara Technologies, with a 46.1 per cent stake in Moonshine Technologies, which operates PokerBaazi, is unaffected as it has “a diversified portfolio across e-sports, kids edutainment, and casual gaming”, MD Nitish Mittersain said. He added that 75-plus per cent of the revenues were from overseas markets.

While many others are not as lucky, observers point out that RMG players could easily build something new, given the crores of investor money, talented coders and the database of millions of users on their side.

The next play

Dream Sports, for instance, is focusing on sports AI, free-to-play fan engagement and creator-led products. While its moneyspinner Dream11 is banned, other verticals remain unaffected, including FanCode, its sports streaming and merchandising platform, and DreamSetGo, a sports travel venture. It also has a personal money management app, Dream Money, for users to invest in gold and fixed deposits and track their spending.

WinZO, which has a presence in Brazil, has entered the US market, besides moving into video content. Co-founder Saumya Singh Rathore announced on LinkedIn the launch of ZO TV, offering its 250 million users “localised short drama series”.

Kavin Bharti Mittal’s Rush, which garnered over $500 million revenue within four years in India, will shift to the US and other global markets. “The US opens up new business models beyond RMG — including advertising and virtual goods, multibillion-dollar categories with far higher consumer spend than in India. It also offers a more stable regulatory environment,” he said. In India, the focus will be on AI-first competitive casual gaming.

Zupee is doubling down on casual free titles. A Bengaluru-based RMG start-up is exploring offering its fantasy game for free and running ads on the platform, apart from rolling out subscription or in-app purchases. Its shift to the casual gaming business will not lead to any layoffs, it asserted.

Elara Securities EVP Karan Taurani said, “We believe RMG money can flow to speculative markets such as FNO (futures and options) and forex trading.” As Gaming Developers Association of India President Sridhar Muppidi sums up, “Many are shifting their RMG focus to international markets, exploring acquisitions in conventional gaming, and even branching into wider entertainment opportunities in India.”

Legal route

While Nazara and Dream Sports are among the firms that are not challenging the ban, other players, notably A23, have moved court.

Shiv Sapra, Partner, Kochhar & Co, thinks there is merit in the challenge. “The Supreme Court and High Courts have consistently upheld decisions in favour of games such as fantasy sports and poker, terming them knowledge and strategy tests and not based on chance,” he said, pointing to how the Union government intervened in 2023 with lighter regulations under the IT Act, enabling self-regulation.

Saswati Soumya Sahu, Partner, ANB Legal, raised the issue of federalism, querying whether States like Goa and Sikkim will continue to have an overriding power in regulating games of chance and games of skill.

Vikram Jeet Singh, Partner at BTG Advaya, pointed out that Indian courts have refused to equate games of skill with gambling, so the law overturns established precedent. “Gaming companies may also argue that the Constitution guarantees freedom of trade and occupation; that said, courts often defer to legislative goals,” he added.

e-Sports ahoy!

Investors with big exposure to RMG are tight-lipped for now. Mumbai-based gaming VC firm Lumikai, whose direct exposure to RMG is limited to 3 per cent across the platform, said, “We acknowledge the clarity this Act brings, but we also... extend our support to operators and founders in the throes of chaos and change.”

e-sports is touted as the way out of the chaos.

Rajan Navani, Founder and CEO, JetSynthesys, said the separation of e-sports and social video games from money-staked gaming is a much-needed boost. “It reduces brand and regulatory risk. We anticipate more capital flowing into the ecosystem, across tournaments, academies and broadcast infrastructure. We’ve already seen global leaders like Krafton investing in JetSynthesys and acquiring a majority stake in Nautilus,” he said.

Mittersain of Nazara, too, acknowledges the boost for e-sports, social and casual gaming. He recently became a Founding Member of the Indian Game Publishers and Developers Association, which seeks a partnership with Maharashtra to make Mumbai a global games hub through policy support.

Rohit N Jagasia, Founder and CEO, Revenant Esports, also believes the gaming industry is at an inflection point. “For the first time, the law formally recognises e-sports as a competitive sport, while ensuring uniformity in regulations across States.”

The players are clearly coping with the cards they have been dealt with.

(With inputs from Vallari Sanzgiri, Meenakshi Verma Ambwani, Jyoti Banthia, KV Kurmanath, Ronendra Singh, and Chitra Narayanan)

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Published on September 1, 2025