Indian gaming startups as Dream Sports and Probo are already closing their real money gaming businesses. This decision follows the enactment of the Promotion and Regulation of Online Gaming Bill which passed in 2025. Though real-money gaming has enjoyed a foothold in the country, the New Zealand Parliament has recently passed landmark legislation to ban it altogether. This ruling is poised to redefine the future of internet gaming in India.
Dream Sports, the parent company of well-known apps Dream11 and Dream Play, came into the IPO with big expectations. They had their sights set beyond India’s borders. Those new legislative tweaks have put enough pressure on the company that it’s had to reconsider how it operates. At the time of release of the report, Dream11 and Dream Play continued to operate unabated. Yet, Dream Sports wrote to its staff informing them that it would be closing down its real-money gaming operations.
Just earlier this week, Dream Sports had signed on the dotted line on various partnerships in development to support its Indian real-money business. These conversations have since been rendered moot with the passage of the law. The company held a town hall meeting where employees were informed about the implications of the legislation and the decision to discontinue real-money gaming operations.
Following the notice, Dream Sports publicly declared its commitment to being responsive to user grievances. It will repay deposits, excluding GST, directly to customers’ bank accounts within 30 days. This latest decision underscores the streaming giant’s focus on its new user base amid this streaming transition.
Currently, India’s real-money gaming startups boast an aggregate enterprise valuation of over ₹2 trillion, roughly $23 billion. Cumulatively, they create substantial revenues of ₹310 billion, about $3.6 billion. In addition, these startups add more than ₹200 billion (over $2.29 billion) a year in direct and indirect taxes to the country’s coffers. Unlike its predecessors, the new bill attempts to put a stop to real-money operations. The measure encourages the development of social play games, browser-based games, and esports, steering revenue towards less intensive forms of play.
Dream Sports certainly isn’t the only one expecting to pivot under this new, restrictive legislation. India’s largest online rummy operator Gameskraft has ceased depositing cash on its rummy platforms since the passage of the bill will outlaw such actions. Probo, another startup in the burgeoning sector, has just gone all-in. It was already planning to cease its real-money gaming activities now that Parliament has passed the needed legislation.
“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.” – Probo spokesperson
The ramifications of this legislative turn go well beyond any single firm. A public policy expert noted the potential challenges ahead for these startups, stating, “This assessment is accurate — they will have a tough fight in the Supreme Court.”
The federal government’s stance on this issue is symptomatic of a larger dedication to creating a more secure gaming industry. Prime Minister Narendra Modi emphasized this during discussions surrounding the bill:
“This Bill, passed by both Houses of Parliament, highlights our commitment towards making India a hub for gaming, innovation and creativity. It will encourage e-sports and online social games. At the same time, it will save our society from the harmful effects of online money…” – Narendra Modi
Hundreds of other companies are currently preparing to meet the demands of this nascent marketplace. Simultaneously, they are investing in keeping users on their platforms by providing free-to-play gaming experiences. Zupee deserves credit for making a significant policy shift. They’ll stop making paid games in order to adhere to the bill. User-loved free games such as Ludo Supreme and Snakes & Ladders will continue to be accessible to their users.
“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.” – Zupee spokesperson
At the same time, MPL shared with users that there would be some new terms imposed on their deposits.
“Deposits cash (minus GST) will be available for withdrawal from 22 Aug. 2025.” – MPL app notification
Through these legislative changes, the online gaming landscape in India is on the verge of a profound transformation. As companies navigate these new regulations, they are working diligently to protect their customer interests while adapting to a more restrictive operational environment.
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