Invest Guide October 2025

Rohit Malhotra (name changed) remembers when the office cafeteria buzzed with talk of leaderboard scores and weekend jackpots. Just three years ago, the 29-year-old software developer joined a fantasy cricket platform on a whim. What began as a harmless lunchtime competition with colleagues soon became a side hustle that brought in nearly as much as his salary.

By 2023, Rohit was generating steady returns, reinvesting a portion of his winnings in higher-stakes contests. He wasn’t alone - millions of young Indians were flocking to Real Money Games (RMG) platforms, driving a multi-billion-rupee industry that created jobs, attracted global investors, and filled government coffers with tax revenue.

Then, almost overnight, the game ended. On 20 August 2025, the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, aimed at curbing the growing instances of addiction, money laundering, and financial fraud associated with such platforms. The move has sent shockwaves through an industry that once symbolised the country’s digital growth story, leaving behind unanswered questions about what the ban means for the livelihoods, revenues, and investments it helped build.

Shockwaves across the gaming arena

The fallout was swift and severe. Dream11, India’s largest fantasy-sports platform, abruptly suspended all paid contests on its app, while its parent Dream Sports informed the Board of Control for Cricket in India that it could no longer sponsor "Team India" under the new law, abruptly ending a multi-year jersey deal signed in 2023. Rivals like Mobile Premier League, WinZO, and PokerBaazi quickly followed suit, switching their users to free-to-play modes overnight.

Legal teams swung into action within days. According to Reuters, several firms began preparing to challenge the ban in the Supreme Court of India, arguing that it was rushed and had even pulled skill-based games like poker into the gambling net.

In essence, the immediate impact unfolded as:

• Paid contests frozen
  Dream11, MPL, and PokerBaazi suspended all cash games.
• Investor panic
  Nazara Technologies, which owns a 46% stake in PokerBaazi’s operator, saw its shares plunge nearly 17% in just three days.
• Sponsorship collapse
  Dream11 told the BCCI it could no longer remain title sponsor, putting an abrupt stop to a marquee partnership.
• Legal counterattack
  Multiple companies signalled they would move court, alleging the ban “lacked consultation” and unfairly targeted games of skill.

A billion-dollar industry on the brink: The impact

India’s online gaming ecosystem, once celebrated as a pillar of its digital economy, now stands on precarious ground. Valued at around $3.7 billion today and projected to soar past $9.1 billion by 2029, the industry’s growth story has been fuelled primarily by real-money gaming (RMG), which contributes nearly 86% of its current revenues. From fantasy sports and online poker to rummy and skill-based esports, these formats have transformed gaming from a niche hobby into a mainstream digital entertainment sector.

The new ban threatens to pull the plug on that engine. Industry estimates place the current enterprise valuation at over ₹2 lakh crore, generating about ₹31,000 crore in annual revenues and ₹20,000 crore in direct and indirect taxes. With over 500 gaming start-ups, millions of active users, and a 20% CAGR growth trajectory that could have doubled the market by 2028, the sector was also becoming a magnet for global venture capital and tech investment.

Now, with its revenue lifeline at risk, the entire gaming value chain from game developers and marketing agencies to payment processors and esports leagues faces an uncertain future. What was once seen as a flagship of India’s innovation economy could be on the brink of collapse.

What supporters of the bill are saying

Several industry voices, especially from the esports sector, have welcomed the new law, calling it a crucial step in drawing a clear line between competitive gaming and betting-driven platforms.

Foreign investment at stake

As per the India Gaming Report 2025. Over the past five years, the sector has attracted nearly USD 3 billion in foreign direct investment (FDI), riding on a user base that accounts for one-fifth of the global gaming population.

However, the new online gaming law threatens to derail this momentum, injecting uncertainty into a market that had been a magnet for global capital and strategic partnerships.

From unicorn to uncertainty:

MPL Downsizing Amid Gaming Bans

Here’s a summary of what’s going on with MPL’s downsizing after the real-money gaming ban in India.

How it works:

• MPL (Mobile Premier League) plans to reduce its India workforce by approximately 60%, affecting about 300 out of 500 employees
• Zero future revenue from the Indian real-money gaming business.
  • The ban on paid/real-money games has wiped out MPL’s India-based revenue models. According to MPL CEO Sai Srinivas, the India business accounts for around 50% of MPL’s revenues, which are now expected to fall to zero under the new law.
• Job cuts affect several departments, including marketing, finance, operations, engineering, and legal.
• MPL is shifting its business strategy by moving away from real-money games in India. It plans to focus more on free-to-play markets, especially overseas (e.g. US, Brazil, Europe), where paid-entry games are still legal.
• MPL stated internally that affected employees will receive full support during the transition. Details on precisely what that means have not been fully disclosed.
• Context / Scale
  • MPL was valued at about US$2.3 billion in 2021.
  • Last year, its India revenue was ~US$100 million.
  • The ban (Promotion and Regulation of Online Gaming Bill) makes almost all real-money gaming illegal, affecting formats like fantasy sports,rummy, poker etc.

India’s gaming industry: A new playbook

For investors, this moment highlights the importance of disciplined, long-term wealth-building strategies. Just as gaming companies are pivoting to sustainable models, individuals can grow their financial security by investing consistently through Systematic Investment Plans (SIPs). Even modest monthly contributions can compound over time into a substantial corpus, offering a steady and reliable path to wealth, especially in uncertain times.

Despite the ban, India’s massive mobile gamer base ensures the market isn’t collapsing- it’s evolving. Success will hinge on player engagement, social-first experiences, and e-sports, proving the game isn’t over; only the rules have changed.

With real-money gaming under pressure, the industry is pivoting toward free-to-play and engagement-driven models, monetized through ads, sponsorships, and in-app purchases. Casual and social games can generate revenue via non-cash mechanics like "lives" or "hints." E-sports remains legal and poised for growth, with government support and training initiatives positioning India as a global contender. Virtual currency formats and social features like clans, chat, and live events offer new ways to engage players.

India’s gamers are learning new strategies, and with InvestOnline, investors can too. Through SIPs, small, consistent moves can turn into a big financial win, proving that patience and smart planning always pay off.