India Bans Real-Money Games: Dream Sports & MPL Respond

Indian Real-Money Gaming Sector Faces Shutdown Following New Legislation

Leading Indian startups operating within the real-money gaming industry are initiating the cessation of their activities. This follows the Indian government’s enactment of new legislation, poised to effectively prohibit the sector.

Parliament Approves Online Gaming Bill

On Thursday, the upper chamber of the Indian Parliament approved the Promotion and Regulation of Online Gaming Bill, 2025. This bill proposes a complete ban on real-money gaming, while simultaneously aiming to foster the growth of casual online games and esports.

The bill’s passage through the lower house occurred just prior to the upper house vote. Presidential assent, considered a formality, is now all that remains before the bill becomes law.

Startups Respond to Impending Law

In the immediate aftermath of the bill’s parliamentary approval, prominent Indian unicorns, including Dream Sports and Mobile Premier League (MPL), began to dismantle their real-money gaming operations.

Alongside these giants, other startups such as Gameskraft, Probo, and Zupee have also commenced shutting down their platforms offering real-money games. Some companies alerted their staff following the lower house’s approval on Wednesday, while others directly informed users via their applications.

Dream Sports Adjusts Strategy

Dream Sports, with investors like Tiger Global and TCV, has discontinued its recently introduced quick-play fantasy gaming application, Dream Picks.

While its other real-money applications, notably Dream11 and Dream Play, remained functional at the time of reporting, sources indicate that the Mumbai-based company intends to fully cease its real-money gaming ventures once the legislation is enacted.

During a town hall meeting on Wednesday, company leadership reportedly informed employees about the law’s implications.

Expansion Plans Halted

Two individuals familiar with Dream Sports’ internal strategy revealed that the startup was actively planning expansion beyond India. These sources requested anonymity as the plans were not yet public.

Furthermore, an investor source disclosed that Dream Sports was nearing the completion of partnership agreements related to its Indian real-money gaming business prior to the bill’s passage.

A Dream Sports spokesperson declined to provide a comment.

MPL Suspends Real-Money Games

MPL, backed by investors including Peak XV and Times Internet, has similarly suspended all real-money games and halted the acceptance of deposits.

A notification within the MPL app states that existing deposits, excluding GST, will be available for withdrawal starting August 22, 2025.

Zupee and Probo Follow Suit

Zupee, with backing from WestCap Group, has also discontinued real-money games immediately.

A Zupee spokesperson stated that while paid games are being discontinued, their free-to-play titles, such as Ludo Supreme and Snakes & Ladders, will remain accessible to all users.

Probo, another startup supported by Peak XV, ceased its real-money gaming operations following the legislation’s approval by Parliament. The company expressed respect for the government’s decision.

Other Platforms Affected

Bootstrapped startup Gameskraft has also ceased accepting funds on its rummy applications. Times Internet’s fantasy cricket game, Cricbuzz11, has also discontinued operations.

The app indicates that deposits, net of GST, will be refunded to users’ bank accounts within 30 days.

Job Market Impact

The shutdown of real-money gaming operations is leading to job insecurity for many employees within these startups. Hundreds are actively seeking new employment opportunities on social media.

One employee, requesting anonymity, stated that companies are anticipated to reduce their workforce to maintain financial stability and satisfy investor expectations.

Legal Challenges Considered Unlikely

While the startups could potentially challenge the law in the Indian Supreme Court, most are reportedly choosing not to pursue this course of action.

A public policy expert working with these companies indicated that a legal challenge would likely be difficult to win.

Industry Valuation and Economic Contribution

Real-money gaming startups in India collectively hold an enterprise valuation of ₹2 trillion (approximately $23 billion). They generate cumulative revenues of ₹310 billion (around $3.6 billion) and contribute ₹200 billion (roughly $2.29 billion) annually in direct and indirect taxes.

Industry bodies project a 28% compound annual growth rate, potentially doubling the industry’s size by 2028.

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