In a blockbuster move just a few days ago, India’s parliament passed a sweeping law that effectively outlawed real-money online gaming. Under the new “Promotion and Regulation of Online Gaming” Act, playing or promoting games where users bet money, from rummy and poker apps to hugely popular fantasy sports contests, is a criminal offence. The government justifies the ban with eye-watering figures: roughly 450 million Indians are estimated to have gambled online, losing about ₹20,000 crore (around US$2.3 billion) each year.

In other words, nearly one-third of the country’s population has been taking a bet online. By night’s end however, on August 28th, overnight fantasy-team tournaments and poker apps were suddenly deflated, as the state put the house rules ahead of the players.

A shock to the system

The immediate fallout was dramatic. Dream11, India’s biggest fantasy-sports platform, froze all paid contests on its app. The parent company, Dream Sports, even informed the Indian cricket board that it could no longer sponsor “Team India” under the new law – a multiyear jersey deal that it had just signed in 2023. Fellow apps like Mobile Premier League, WinZO, PokerBaazi and others followed suit, instantly redirecting players to free-to-play versions. Within days, legal teams were being consulted: a Reuters report noted several firms were preparing to challenge the ban in the Supreme Court, arguing the law was rushed and even swept skill-based games (like poker) into the gambling net.

To summarise, here’s what the immediate reaction looked like:

→ Paid contests halted: Dream11, MPL, PokerBaazi and others immediately suspended all games for cash.

→ Investor jitters: Nazara Technologies (which owns a 46% stake in PokerBaazi’s operator) saw its shares plunge about 17% in three days after its gaming arm pulled paid games

→ Sponsor lost: Dream11 told the BCCI it cannot remain title sponsor due to the ban – a sudden blackout on that marquee partnership

→ Legal scramble: Some companies say they will petition the courts, claiming the ban “lacked consultation” and wrongly targets games of skill.

Even Dream11’s own CEO, Harsh Jain, adopted a cautious tone. In a media interview he said the company had no appetite for confrontation with the government. “I think the government has made it clear that they don’t want this right now… We want to focus entirely on the future,” Jain told Moneycontrol.

 In practice, Dream11 immediately shifted to only free contests and even started exploring other offerings (for example, venturing into financial “wealth management” products) to survive without entry fees.

Weighing the win (and the pain)

From the government’s perspective, the ban is framed as a public-health victory. Officials say it will “curb addiction, financial ruin and social distress” caused by predatory gaming apps. Union Minister Ashwini Vaishnaw emphasised that genuine e-sports and social games are still welcome – the law “encourages e-sports and online social games” and “clearly separates constructive digital recreation from betting and gambling.”

In fact, the new rules carve out exceptions for non-monetized games, e-sports competitions and educational or cultural games that promote skill or community.

Critics, however, say the ban is a scorched-earth solution. Congress MP Shashi Tharoor warned that outlawing online games outright will simply drive them underground. In Parliament, he reminded colleagues that gaming could be taxed and regulated “rather than drive it underground by banning it, which will merely enhance the profits of the mafia”. Industry letters echoed those concerns: one coalition noted India’s 450 million online gamers (≈45 crore) might flock to unregulated offshore platforms without a legal option domestically. They also point out that only about one-third of all games involved money – the remaining two-thirds (social games, e-sports, free tournaments) remain unaffected.

In short, the debate turns on values: the government is betting that social welfare outweighs the economic upside of the “skill gaming” boom, while the industry counters that a regulated market could create jobs and tax revenue instead of bans and job losses.

Figure 1: India’s gaming market was on a rocket trajectory. Industry analysts estimated its size would grow from about $4.04 billion in 2025 to $8.36 billion by 2030, almost doubling. The new law has forced that projection to hit pause. Source: Mordor Intelligence

So, where does this leave India's mobile gaming industry?

What does this mean for India’s mobile gaming ecosystem? For one, it forces a pivot. India had been one of the world’s hottest gaming markets – with roughly $3.8 billion in online gaming revenue in 2024 and rapid growth. Analysts estimated venture capital exposure at nearly $2 billion invested across startups now valued around $15 billion. Tens of millions of smartphones were humming with games. Now, any titles monetized by cash entry fees are gone, so developers must find other business models. Many are already acting fast. Dream Sports, for example, is repackaging its app as a social gaming and content hub (even piloting a fintech “portfolio” feature). WinZO has scrapped money games in favour of free skill contests and is even eyeing overseas expansion and game-show style “micro-drama” content.

What the future could look like

1. Shift to ad- and engagement-driven models

• With real-money formats under pressure, free-to-play mechanics remain the safest bet.
• Monetization will come from ads, sponsorships, and in-app purchases: the standard model for most global mobile apps.
• Social and casual games (puzzle, trivia, cricket-themed apps) can still monetize indirectly through “lives,” “hints,” or other non-cash mechanics.

2. Esports gets a tailwind

• Competitive skill-only tournaments are legal and now positioned for growth.
• Government support is emerging, with plans for training academies and incentives for esports athletes.
• This could push India onto the global esports map, especially in mobile-first titles.

3. Innovation beyond money bets

• Real-money gaming isn’t entirely dead: formats using virtual coins instead of rupees could survive, reframed as entertainment.
• Developers must compete on engagement, not cash prizes. That means:
  • Live events & seasonal challenges
  • Social features like clans, chat, and streaming battles
  • New genres (hyper-casual, narrative-led games with Indian context)

4. A market reset, not a collapse

• India still has hundreds of millions of mobile gamers - a massive user base hungry for entertainment.
• The challenge is no longer “how do we pay players to play?” but “how do we get players to pay attention?”
• International examples show ecosystems can bounce back from regulatory crackdowns if developers pivot quickly.

The bottom line? India’s gaming industry is entering its “second act.” The real-money era may be over, and the industry is staring down the barrel of a reinvention or pivot. If laws remain, which, let's be honest, is most likely to be the case, success will most probably hinge on reimagining monetization around player engagement, esports, and social-first experiences.