All Bets Off, Game Over!

The government’s blanket ban on online gaming has left many small and big players fuming. Not to mention the shuffle and ripple effect on the country’s digital economy. Citing financial and addiction risks, especially among youth, the Prime Minister Narendra Modi-led government imposed a complete ban on online paid games and endorsements. Unicorns have turned to dust, investors have taken a hit, and even some actors and cricketing icons have lost out on fat endorsement cheques. An industry once valued in the tens of thousands of crores is now staring into an uncertain future.

Crores In The Kitty

Until recently, online gaming wasn’t just a pastime; it was a goldmine. According to CA Deepak Gupta, founder of Finvestment Pro Pvt Ltd and Studycafe Pvt Ltd, “Before the ban, the online gaming and fantasy sports sector had scaled to an estimated market size of Rs 20,000–25,000 crore annually. Projections suggested this could have touched Rs 50,000 crore by 2028.”

Platforms like Dream11, MPL (Mobile Premier League), RummyCircle, and other fantasy sports apps had created a full-fledged digital entertainment ecosystem. Venture capitalists from around the world were queuing up to fund these startups. India’s youth-heavy demographics and cheap smartphone access made it the perfect ground for growth.

For investors, India was seen as the next big gaming hub after the US and China. Unicorn valuations weren’t just paper numbers; they were indicators of global confidence in India’s digital economy.

FROM HERO TO ZERO

With the sudden ban, valuations of leading gaming companies nosedived to nothing overnight. Deepak Gupta estimates that $2–3 billion in enterprise value has already been wiped out. And this doesn’t just hurt founders — it directly hits global investors who had pegged India as their next gaming jackpot. “The abrupt ban sends a negative signal to investors across consumer tech,” Gupta notes. “They may now perceive India’s regulatory environment as unpredictable. That impacts not just gaming but also adjacent industries like sports tech, streaming, and interactive entertainment.”

• After a new law in India banned real-money gaming in August 2025, Dream11 shifted its business model to entirely free-to-play online social games, ceasing all paid contests to comply with the law.

• Dozens of smaller startups concentrated in Bengaluru, Hyderabad, and Gurugram face complete shutdown.

• MPL, once valued at over $2.5 billion, is now staring at large-scale layoffs and investor exits.

STARS STRUCK

The online money gaming ban hasn’t just jolted startups and investors; it has rocked the celebrity endorsement economy. Fantasy sports platforms had tied up with India’s biggest icons. MS Dhoni, Rohit Sharma, Hardik Pandya, and a roster of Bollywood stars fronted Dream11 and MPL campaigns. These weren’t shady betting sites; they were legitimate, skill-based platforms with official contracts.

The scale of the wipeout was summed up by business leader Harsh Goenka in a viral X post: “Dream11 – an $8B valuation empire, crafted with vision and sweat. Then, one ruthless stroke of legislation… and poof, it vanishes into thin air. A reminder: in business, as in life, the distance between glory and ruin is a single breath.”

Now, overnight, crores in endorsement deals have been scrapped. Multi-year advertising campaigns have been shelved. For cricketers and celebrities, this means a direct financial hit.

For brands, it’s reputational damage. Imagine ads that can no longer air and billboards that suddenly feel illegal.

In a cricket-obsessed nation, where fantasy sports had practically become a parallel viewing ritual, this overnight pullback is nothing short of dramatic.

THE LEGAL LENS

The big question now: is this blanket ban legally sustainable? Advocate Leon Almeida explains it through the Law of Contract. “Agreements in wager are void,” he says. “So, banning wagering platforms is consistent with Indian law, as it prevents innocent people from losing hard-earned money.”

But what about fantasy sports, which many argue are skill-based? That’s the grey area. If companies like Dream11 can prove their platforms require strategy, analysis, and knowledge, they could argue they are not gambling outfits.

“Companies may file appeals against the ban if they consider it arbitrary,” Almeida adds. “They need to provide a strong stand that their business helps society rather than pushing users into legalized gambling.” Globally, courts have often sided with fantasy sports as skill-based, which is why many industry insiders expect Indian firms to challenge the decision.

Collateral Damage

Beyond valuations, the ban has human consequences. Thousands of employees in India’s gaming hubs are now staring at pink slips. From engineers and designers to marketing teams and support staff, job losses could run into the thousands. Investors, too, are reeling under pressure. With billions poured into Indian gaming unicorns, funds are now forced to write off massive amounts. Some global funds may even rethink their long-term commitment to Indian startups.

As Gupta points out, “The fallout goes beyond gaming. The negative signal on regulatory predictability could tighten funding flows across the startup ecosystem.” In simpler terms: if it can happen to gaming, it can happen to anyone.

Not everyone sees the ban as a disaster. Financial influencer Anurag Yadav believes it’s a positive step. “Our youth was falling into all of these gambling apps,” he says. “Now, after this decision, they will focus more on their careers and building businesses.”

Adv Leon Almeida echoes the sentiment: “These laws are based on principles developed over time to protect society. We may see amendments, but not in a way that legitimizes wagering.” So while startups and investors cry foul, others believe the ban will save young Indians from addiction and financial ruin.

The Way Ahead

The future of online gaming in India now hinges on regulatory clarity. Gupta believes that an outright ban isn’t the answer. “India cannot afford to lose out on innovation and jobs in a sector that globally continues to grow rapidly,” he argues. “A licensing framework, distinguishing skill-based gaming from games of chance, is the way forward.”

If courts and policymakers push for a differentiated regulatory regime, capital inflows could return under a more transparent, controlled environment. This would protect consumers while still allowing legitimate companies to operate. For now, though, the ban has left the industry in limbo. Unicorns have been grounded, investors are wary, and stars have lost their shine.

THE LAST WORD

The online gaming ban has revealed the tension at the heart of India’s digital economy: innovation versus regulation. On one side is a booming sector offering jobs, FDI, and global recognition. On the other hand, is the real concern of gambling addiction, financial exploitation, and social impact. Whether India revises its stance or doubles down will determine if this was a short-lived pause or the end of the road for fantasy gaming. But one thing is clear — the ban has turned India’s online gaming dream into a real-life cautionary tale.