India has implemented a sweeping ban on real money games (RMGs)—online platforms where users wager cash on skill-based or chance-based activities—dealing a severe blow to the country’s booming $2.5 billion RMG industry. The ban, announced by India’s Ministry of Electronics and Information Technology (MeitY) on August 21, 2025, classifies most real money gaming platforms as “a threat to public order and financial stability” and prohibits their operation, marketing, and user access nationwide. In response, two of India’s largest RMG firms—Dream Sports (operator of Dream11, a popular fantasy cricket platform) and Mobile Premier League (MPL)—have already begun suspending services, laying off staff, and exploring exit strategies, leaving millions of users and thousands of employees in limbo.
The Ban: Scope, Rationale, and Timing
The new regulation defines real money games broadly as any online game where users “deposit or win cash, prizes convertible to cash, or other monetary benefits” and applies to both skill-based games (like fantasy sports, poker, and rummy) and chance-based games (like online slots or dice games). Notably, it carves out no exceptions for “skill-dominant” platforms—a key point of contention for firms like Dream Sports, which has long argued that fantasy cricket qualifies as a skill-based activity (and thus should be exempt from gambling restrictions).
MeitY’s official statement cites three core reasons for the ban:
- Financial Risks to Users: Data showing a surge in “gambling-related debt” among young adults (ages 18–35), with over 40% of RMG users reporting they spent more than their monthly income on platform deposits.
- Social Harm: Rising cases of mental health issues (anxiety, depression) linked to compulsive gaming, as well as family disputes and frauds tied to RMG platforms.
- Regulatory Gaps: The lack of uniform national rules for RMGs (previously regulated by state governments, leading to inconsistent enforcement) created opportunities for platforms to operate in “grey areas” and avoid tax or consumer protection measures.
The ban takes effect immediately for new users, with existing users given a 30-day grace period to withdraw remaining funds from their accounts. After September 20, all RMG platforms must cease operations entirely, and app stores (Google Play, Apple App Store) have been ordered to remove RMG apps from their Indian marketplaces by August 31.
Dream Sports and MPL: Racing to Wind Down
For Dream Sports and MPL—companies that collectively dominate over 60% of India’s RMG market—the ban is existential. Both firms have spent years building user bases (Dream11 claims 150 million users; MPL reports 80 million) and securing billion-dollar valuations (Dream Sports was valued at $8 billion in 2024; MPL at $2.3 billion), but now face the prospect of shutting down their core Indian operations.
Dream Sports’ Response
Dream Sports, which relies on Dream11 for over 90% of its revenue, announced on August 21 that it would “immediately pause new user sign-ups” and begin processing withdrawals for existing users. The company also confirmed it has laid off 30% of its 2,500-strong workforce (mostly in customer support, marketing, and operations) and halted all advertising campaigns. In a statement, CEO Harsh Jain called the ban “a devastating setback for India’s digital economy” and hinted at legal action: “We believe the regulation misclassifies skill-based fantasy sports and violates constitutional guarantees of fair trade. We are exploring all legal options to protect our users, employees, and business.”
Dream Sports had previously invested heavily in positioning Dream11 as a “sports tech” platform rather than a gaming service—sponsoring cricket leagues like the Indian Premier League (IPL) and partnering with athletes to promote “skill development.” The ban invalidates these efforts, leaving the company with few viable paths forward in its home market.
MPL’s Crisis
MPL, which offers a mix of fantasy sports, esports tournaments, and casual games with real money stakes, has taken a more drastic approach: it announced on August 22 that it will “permanently shut down all Indian operations” by September 1, citing “the impossibility of complying with the new regulation.” The firm has laid off 80% of its 1,200 employees and is in talks to sell its non-Indian assets (including its Southeast Asian esports business) to raise funds for creditor payments.
In a memo to staff, MPL co-founder Sai Srinivas said, “This ban has left us with no choice but to exit the market we’ve called home for seven years. We deeply regret the impact this has on our team and users, but we cannot operate in a regulatory environment that criminalizes our core business.”
Wider Impact: Users, Employees, and Investors
The ban’s ripple effects extend far beyond the two major firms:
- Users: Millions of RMG users—many of whom use platforms like Dream11 or MPL as a source of side income (e.g., winning small cash prizes in fantasy leagues)—now face the loss of a revenue stream. Social media has been flooded with complaints from users struggling to withdraw funds, with some reporting delays or errors in the withdrawal process.
- Smaller Platforms: Hundreds of smaller RMG startups (focused on niche games like rummy or poker) are likely to fold entirely, as they lack the resources to challenge the ban legally or pivot to other markets.
- Investors: Global firms that backed Indian RMGs—including SoftBank, Tiger Global, and Sequoia Capital—stand to lose billions. SoftBank, which invested $200 million in Dream Sports in 2023, has already written down 90% of its stake, according to a source familiar with the matter.
- Esports and Gaming Ecosystem: The ban has also raised uncertainty for India’s esports industry, as some MPL-like platforms hosted esports tournaments with small cash prizes. While MeitY has clarified that “non-monetary esports events” (e.g., tournaments with trophy-only prizes) are exempt, many organizers are holding off on events to avoid regulatory scrutiny.
Legal Challenges and Future Uncertainty
Dream Sports and several industry bodies (like the Federation of Indian Fantasy Sports) have announced plans to challenge the ban in India’s Supreme Court, arguing that it violates Article 19(1)(g) of the Indian Constitution (which guarantees the right to practice any profession or trade) and overrides state-level laws that previously allowed skill-based games.
Legal experts, however, say the odds of overturning the ban are slim. “MeitY has framed this as a public interest measure, citing data on financial harm and social risks—arguments that Indian courts have historically favored in cases involving gambling or online platforms,” said Priya Sharma, a tech and telecom lawyer at Delhi-based firm Khaitan & Co. “Even if the court grants a stay, it’s unlikely to strike down the regulation entirely; more probable is a narrow exemption for truly skill-based games, but defining that line will be contentious.”
For RMG firms, the only viable long-term option may be to exit India or pivot to non-monetary models (e.g., “free-to-play” platforms with no cash prizes). Dream Sports, for example, is reportedly exploring a launch in the U.S. and Europe, where fantasy sports are regulated but legal. MPL, meanwhile, is in talks to sell its technology to non-RMG gaming firms.
A Turning Point for India’s Digital Economy
The real money games ban represents a significant shift in India’s approach to regulating online platforms, following similar crackdowns on social media (e.g., 2023’s rules on content moderation) and ecommerce (e.g., 2024’s restrictions on foreign-owned firms). For many in the tech industry, it’s a sign that the Indian government is prioritizing “social stability” over rapid digital growth—a tradeoff that could deter future investment in sectors seen as high-risk.
As one venture capitalist (who requested anonymity) put it: “Investors will think twice before putting money into Indian consumer tech now, especially if the rules can change overnight. The RMG ban isn’t just about gaming—it’s a signal that no sector is safe from sudden regulatory action.”
For now, though, the focus remains on the immediate fallout: thousands of job losses, millions of disrupted users, and the end of an industry that once seemed poised to become a cornerstone of India’s digital economy. As Dream Sports’ Jain put it in his statement: “Today is a sad day for Indian tech. We hope the government will reconsider, but until then, we have to do right by our users and employees.”