India’s Real-Money Gaming Industry in Freefall Amid Regulatory Limbo

India’s burgeoning real-money gaming (RMG) sector has hit a severe downturn following the passage of the Promotion and Regulation of Online Gaming Act, 2025 (PROGA). Industry observers report that the sector has absorbed asset write-downs of over ₹7,000 crore (approximately USD 840 million) and foregone revenues exceeding ₹10,000 crore in just a few months, even before full enforcement of the law.

The root of the crisis lies in the rapid enactment of the PROGA, which criminalises online games played for money across India. Although the law was passed swiftly in August 2025, the government has yet to formally notify or operationalise many of its provisions — leaving companies in limbo, unable to plan or adjust. The uncertainty has triggered a near-freeze of investment, sudden shutdowns of paid gaming operations, and a wave of impairments of previously valued assets. 

For the companies involved, the financial consequences have been stark. Leaders such as Nazara Technologies have booked impairments (approximately ₹914 crore) on stakes in Indian RMG ventures. International firms like Flutter Entertainment have pulled back or ceased their India-facing real-money operations altogether, citing both regulatory risk and shifting business fundamentals. The investor community is equally rattled, with venture capital funding drying up and previous valuations recalibrated amid uncertainty. 

The downstream effects extend beyond gaming companies. Many RMG platforms were significant users of advertising, sponsorships and talent; now, major partnerships are under threat. For example, Dream11 is reportedly in talks to exit its jersey sponsorship deal with the Board of Control for Cricket in India (BCCI) as the industry aligns its business models to the new regulatory environment. Meanwhile, concerns are mounting among policymakers about youth engagement, consumer protection and the risk of gaming shifting underground. 

What’s next for India’s RMG industry? The path forward appears uncertain. Without clear regulatory guidelines, licensing regimes, or transition measures for paid gaming platforms, companies may pivot away from India or shift focus to free-to-play models. Some operators are already downsizing or eliminating their India operations entirely. For stakeholders — from investors and startups to regulators and gamers — the key questions will revolve around how quickly the regulatory regime will stabilise, whether the government will provide relief or clarity for existing operators, and how the sector will reinvent itself in a landscape reshaped by prohibition rather than growth.