India Enacts Online Gaming Ban as Firms Pivot to Free Models and Global Expansion

The President of India approved the Promotion and Regulation of Online Gaming Act, 2025, on Friday, August 22, officially implementing the ban on real money games (RMGs) throughout the country.

Almost immediately, major gaming firms announced compliance, pausing or shutting down cash-based contests. The industry’s initial response has been notably restrained, with companies focusing on user withdrawals and alternative formats rather than outright confrontation.

Major Platforms Halt Cash Games

Among the first to react was WinZO, which boasts over 250 million users. The company issued a statement confirming, “In compliance with the new law, we are responsibly withdrawing impacted offerings w.e.f 22nd August 2025.”

Fantasy sports giant Dream11 echoed the same in a notice to users: “As per The Promotion and Regulation of Online Gaming Bill, 2025, cash games and contests have been discontinued.” Its parent firm, Dream Sports, also confirmed that all “Pay to Play” fantasy contests on Dream11, Dream Picks, and Dream Play had been paused. Meanwhile, Dream11 has also ended its ₹358-crore jersey sponsorship deal with the Indian cricket team (BCCI), as per ANI.

PokerBaazi, part of Nazara-backed Moonshine Technologies, assured players that while games were suspended, “Your funds are 100% safe and available for withdrawal.” The company added a hopeful note: “While this chapter pauses here, we remain hopeful that the future will once again allow us to celebrate the game we all love.”

Other major platforms followed suit. Adda52 stopped deposits and cash games. Mobile Premier League (MPL) suspended more than 60 money-based titles. RummyCircle and Gameskraft’s RummyCulture similarly confirmed the closure of all cash-based contests.

Even Hike, which ran the Rush gaming app, announced it was shutting down Indian operations and shifting focus to the US.

Zupee, however, has just suspended its RMG business and pivoted to free-to-play models with titles like Ludo Supreme and Snakes & Ladders continuing.

Industry-Wide Fallout

The All India Gaming Federation (AIGF), representing major RMG firms, wrote to Home Minister Amit Shah on August 23, urging reconsideration of the ban. The body warned that the decision could “push millions of users to unsafe and illegal offshore gaming platforms” and harm a sector that contributes ₹20,000 crore in annual taxes, employs over 200,000 people, and attracts ₹25,000 crore in foreign investment.

According to industry trackers, the domestic RMG market was valued at $3.7 billion and projected to nearly double by 2029. With the blanket ban, firms risk losing one of the fastest-growing segments of India’s gaming industry.

Future Plans: Free Games and Global Push

Despite the setback, companies are already reworking their strategies. The most common pivot is towards free-to-play (F2P) models supported by ads or in-app purchases. Apps like Zupee, already moving with this plan for games like Ludo, chess, and non-monetary fantasy sports.

International expansion is another recurring theme. Dream Sports, MPL, Hike, and WinZO are actively exploring markets like the US and UK, where skill-based gaming is legal under regulation. WinZO, in particular, has already launched operations in Brazil and, just days after the Indian ban, officially entered the US market.

WinZO co-founders Saumya Singh Rathore and Paavan Nanda said in a joint statement, “The launch of WinZO in the US is a proud milestone for us and for India’s digital entertainment ecosystem. Our vision has always been to empower Indian developers to reach global audiences. Entering the US, the world’s largest and most influential gaming market, is a decisive step towards that mission.”

The company also unveiled ZO TV, a short-video platform aimed at diversifying entertainment formats.

Legal Challenges on the Horizon

While companies have publicly stressed compliance, industry insiders suggest that several, including Dream Sports and MPL, are preparing legal challenges. The core argument centers on the skill vs. chance distinction. Games like fantasy sports and rummy have previously been recognized by Indian courts as skill-based, which makes the blanket ban contentious under Article 19(1)(g) of the Constitution, which protects the right to trade.

If filed, these petitions could end up in the Supreme Court, setting the stage for another round of debate on India’s approach to online gaming.

Government’s Stand

The government, however, has remained firm. Union IT Minister Ashwini Vaishnaw, who introduced the bill, argued that the ban was necessary to address addiction, financial distress, and security risks. Officials highlighted that Indian users lose nearly ₹20,000 crore annually on such games and warned of potential misuse of RMG platforms for money laundering and terror financing.

The Act prescribes penalties of up to three years in prison or ₹1 crore in fines for operating RMG platforms, with advertising violations attracting fines of up to ₹50 lakh.

The Road Ahead

For now, India’s real money gaming chapter has come to an abrupt halt. But the story is far from over. Firms are recalibrating with free games and overseas operations, while industry bodies prepare for possible legal battles. Meanwhile, millions of Indian users are now adapting to a gaming routine that has changed drastically compared to just a few weeks ago.

Whether the government reconsiders regulation over prohibition, or whether offshore expansion becomes the new normal, one thing is certain — India’s gaming industry has entered a defining phase.