Game On or Game Over?

The Rise of the Gaming Boom 

The numbers tell you why the sector grew too big to ignore.

• Revenue: The industry clocked $3.7 billion(FY 2024-25) in FY24, with real-money games contributing nearly 80% of revenue.
• Taxation: After the GST Council’s move in 2023 to levy 28% GST on online real-money games, the government has seen a 412% jump in revenue from the increased levy on online gaming, according to a status report submitted to the fitment committee.
• Investments: Startups like MPL and WinZO attracted marquee investors, while Dream11 became India’s first gaming unicorn.

But the same growth unleashed societal and psychological consequences that the government could no longer ignore.

Why the Bill Happened

At its core, the Bill is a response to mounting public pressure and alarming stories.

• According to MeitY, nearly 45 crore people were negatively affected by online money games, with losses estimated at ₹20,000 crore.
• Cases of suicides linked to gaming debt made headlines, especially among youth in states like Andhra Pradesh, Tamil Nadu, and Karnataka.
• Investigations revealed platforms were also being misused for money laundering and even terror financing.
• Globally, the WHO’s classification of gaming disorder as a health condition added legitimacy to calls for tighter regulation.

The government’s message was blunt: online money gaming had crossed from recreation into exploitation.

What the Online Gaming Bill, 2025 Says:

The Bill is both carrot and stick — it bans harmful formats but simultaneously promotes esports and safe digital games.

1. Applicability
Covers all online gaming services in India, including offshore platforms targeting Indian users. It is broadly divided into three distinct segments, each with its own features and implications for society: Esports, Online Social Games, and Online Money Games

2. Ban on Online Money Games

• Complete prohibition of games involving financial stakes, whether of chance or skill.
• No advertisements, no payment processing, no access — platforms will be blocked under IT Act, 2000 provisions.

3. Promotion of E-Sports & Social Games

• E-sports are formally recognised as a competitive sport.
• Dedicated academies, research centres, and government-backed tournaments planned.
• Safe social and educational games to be promoted through recognition and registration.

4. Creation of Online Gaming Authority

• A national-level authority to classify games, regulate platforms, and handle grievances.

5. Penalties

• Offering or facilitating banned games: up to 3 years imprisonment + ₹1 crore fine.
• Advertising money games: up to 2 years + ₹50 lakh fine.
• Repeat offences: harsher penalties, including 5 years and fines up to ₹2 crore.

6. Corporate Liability
Platform founders and officers can be held liable. Independent directors and non-executive directors, however, are shielded if they exercised due diligence.

Startups in the Firing Line

For India’s gaming unicorns, this isn’t just compliance — it’s survival.

• Dream11: The fantasy sports giant, in FY24 alone posted revenues of over ₹9,600 crore built its empire around real-money cricket contests. With the ban, its core model is at risk. BCCI confirmed that they are ending their ₹358-crore jersey sponsorship deal with Dream11. Insiders say the company is pivoting towards free-to-play esports tournaments and considering global expansion to markets with clearer regulation.
• MPL (Mobile Premier League): Once India’s fastest-growing gaming platform, MPL has already diversified into casual skill games and esports. The Bill will accelerate that pivot, but its revenue engine from fantasy and rummy faces immediate disruption.
• RummyCircle: With rummy now classified as a money game irrespective of skill, the platform’s core business is directly hit. Analysts expect consolidation or exit strategies.
• WinZO: Known for social gaming with micro-transactions, WinZO has more flexibility. However, its competitive cash-driven models will need re-engineering.

For investors, this is déjà vu of the crypto crackdown. High-growth startups suddenly navigating existential risks. The big question: do VCs still back gaming, or does capital shift to safer digital bets like AI or SaaS?

Innovation vs Regulation: The Eternal Tug-of-War

This Bill is the latest episode in India’s ongoing struggle to balance growth with governance.

• On one hand, the Regulation was overdue. Loopholes allowed offshore operators to flourish unchecked, while families bore the brunt of addiction and fraud. Closing those gaps brings order and trust.
• On the other hand, a blanket ban risks throwing the baby out with the bathwater. Fantasy sports, for example, were recognised by courts as “games of skill.” Now, they’re erased from the legal playing field.

Marketing, Monetisation, and User Engagement: The New Rules

The fallout isn’t just legal. It will ripple across how platforms engage users.

• Marketing Models: No more celebrity endorsements of money games. Already, advisories barred actors like Shah Rukh Khan and Virat Kohli from fronting betting ads. Now, esports and educational games may become the new playground for endorsements.
• Monetisation Strategies: Platforms will shift from rake fees and deposits to subscription models, in-app purchases, and ad-based revenues. Expect Dream11-like platforms to experiment with fantasy leagues where rewards are non-monetary but still prestige-driven.
• User Engagement: Gamification will pivot community, skills, and recognition instead of cash wins. Leaderboards, badges, and live-streamed tournaments will replace wallets and withdrawals.

For users, the experience changes fundamentally: from “play to earn” to “play to enjoy.”

What This Means for Players

For millions of players, especially in Tier-2 and Tier-3 towns where these platforms had exploded, the shift will be dramatic.

The Gains:

• Greater digital safety — no risk of being lured into debt traps.
• E-sports pathways opening for genuine gamers with skills.
• Families are shielded from financial distress.

Losses:

• The thrill of high stakes play disappears.
• Communities built around fantasy cricket and cash rummy may wither.
• For some, gaming might lose its allure without monetary rewards.

But the government argues the trade-off is worth it: fewer tragedies, healthier play.