Real-Money Game Operators Crash Out From India Dream11 users are now getting in-app notifications that the platform will no longer offer cash games and contests.

The Indian government's new gaming bill has sent the real-money game players in a tizzy with many formally announcing shutting down or moving out business from the country.

For the uninitiated, the new bill defines RMGs as "an online game, irrespective of whether such game is based on skill, chance, or both, played by a user by paying fees, depositing money or other stakes in expectation of winning which entails monetary and other enrichment in return of money or other stakes; but shall not include any e-sports…"

The deal-breaker, however, is the proposal to impose a blanket ban on such platforms.

"No person shall offer, aid, abet, induce or otherwise indulge or engage in the offering of online money game and online money gaming service," the bill says.

"No person shall make, cause to be made, aid, abet, induce, or otherwise be involved in the making or causing to be made any advertisement, in any media including electronic means of communication, which directly or indirectly promotes or induces any person to play any online money game or indulge in any activity promoting online money gaming," it further states.

The Collapse

Dream Sports, which operates the popular Dream11 game, has reportedly decided to shut down its real money games. The move is likely to have a massive impact on the company's revenue, which is essentially driven by real money games.

Dream Sports declined to comment on the reports of shutting down its real money games.

It's worth highlighting that Dream11 users are now getting in-app notifications that the platform will no longer offer cash games and contests.

"Thank you for being a valuable member of our Dream 11 family. As per 'The Promotion and Regulation of Online Gaming Bill, 2025', cash games and contests will be discontinued on Dream11," the pop up message reads.

The app at the moment is offering only free to play games.

Another platform that is shutting down operations in India is Kavin Bharti Mittal's Rush.

In a post on LinkedIn, Mittal wrote, "We will exit India completely and focus 100% of our efforts on the US and global markets. The Govt of India has made its stance clear: Real Money Gaming will not be allowed. Years of regulatory ambiguity followed by a bill rushed through to ban all RMG — without industry consultation. The message is loud and clear."

In India, Rush scaled to $500M+ in gross revenue in just 4 short years, he disclosed.

Mittal, however, also pointed out that had the decision been made sooner, with clearer communication, it would have saved billions in wasted investment and avoided leaving the industry in limbo. He further highlighted the government's approach towards the cryptocurrency.

Another popular and large RMG firm to follow suit is WinZO.

"In compliance with the new law, we are responsibly withdrawing offerings w.e.f 22nd August 2025," the company said in a statement.

The firm also highlighted that WinZO has built a community of over 250 million users, [and] supported 75,000+ creators since the company was founded in 2018.

"From Kalaari Capital and Griffin Gaming Partners to Courtside Ventures, Makers Fund, and Steve Pagliuca (Co-Chair of Bain Capital, owner of the Boston Celtics, and early investor in Epic Games), WinZO became their gateway to India. Together with many game developers, we proudly launched the first-ever India Pavilions at global gaming conventions in the US, Brazil, and Germany, showcasing Indian talent on the world stage," the statement read.

Nazara, the only public gaming company in India, disclosed that its portfolio company Moonshine aka Pokerbaazi has stopped real money online gaming operations.

"In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and pursuant to the Promotion and Regulation of Online Gaming Bill, 2025 (the "Bill"), passed by the Parliament on August 21, 2025 and pending enactment, we wish to inform that, as a matter of abundant caution and in due respect of the Government's mandate, Moonshine Technologies Private Limited ("Moonshine/Pokerbaazi"), an associate company in which Nazara Technologies Limited (the "Company") holds a 46.07% stake, has ceased offering real money online gaming operations. The Company will evaluate the future course of action following the enactment of the Bill. This disclosure is being made in the interest of providing clarity to investors and stakeholders. You are requested to take the above intimation on your record," the company said in a filing with the SEBI.

Probo, a rather opinion based firm, also hinted at shutting down operations.

"Finally, Bharat means "bearer of light or knowledge" - information markets are our chance to be the bearer for "gyaan-yug" or "information era". We really felt it in our veins that we would do it, however, we must have fallen short in our penance and toil. This note is a placeholder in time for the one dreamer who shall take it ahead," Probo CEO Sachin Gupta said in a post.

Gamescraft and Games24x7 are also reportedly shutting down their respective RMGs.

Entrepreneur India has reached out to the companies for a response. We will update this section as soon as we hear from them.

The gaming industry takes a hit, but

The withdrawal of RMGs from the industry is likely to have a large impact on the overall gaming industry. According to a Lumikai report released in November 2024, real-money gaming remains the largest revenue contributor to the overall gaming industry, which was pegged at USD 3.8 billion in FY2023-24. Real-money games accounted for USD 2.4 billion of the total revenues. The report estimates that the gaming industry will be worth USD 9.2 billion by FY29.

The All India Gaming Federation (AIGF) says that the "online skill gaming" industry is a sunrise sector with over INR 2 lakh crore valuation and over INR 31,000 crore in revenue. The industry supports 2 lakh direct and indirect jobs.

Evidently, the online gaming industry is set to reel under financial stress in the coming days. Conventional gaming companies, however, appear to be unperturbed by the loss of income.

"The biggest benefit is clarity. For years, esports was conflated with real money gaming, creating hesitation among investors, brands, and even parents. This bill officially recognises esports as a legitimate competitive sport, removing that ambiguity and unlocking confidence across the ecosystem. It strengthens opportunities for structured growth, whether through professional leagues, IP creation, or homegrown game development, while attracting non-endemic brands and long-term investments into the sector. For young players, it sends a powerful signal that esports can be a real, respectable career path," said Akshat Rathee, cofounder and Managing Director of NODWIN Gaming, in a statement to Entrepreneur.

On the revenue loss for industry, Rathee further explained that in the short term, headline numbers will drop because online money games contributed to a sizable number of gaming revenues. But those figures never reflected the true potential of video gaming and esports in India.

"Now, the focus shifts to building sustainable business models around skill-based gaming: sponsorships, media rights, in-app purchases, fan monetisation, and merchandising. This is a healthier path for the ecosystem in the long run, and it aligns India with global best practices. Growth may look slower initially, but it will be stronger and more resilient," he said.

Animesh Agarwal, cofounder and CEO, S8UL, adds that excluding real money gaming (RMG) from the overall gaming market numbers does not impact the esports industry. T

"Those figures were never a true reflection of the gaming or esports ecosystem in the first place. From an esports perspective, India already has a sizable market, though still at a nascent stage. In fact, this separation is a positive step, it brings clarity, ensures that any growth recorded going forward is directly attributable to esports, and helps the industry stand on its own merit. Just quoting large numbers was never enough; what matters is how the industry is maturing steadily and sustainably. And additionally, for us, it's more ethical to present esports as it is, rather than stay hidden under inflated numbers dominated by RMG," he said.

Rathee stresses the need for enabling policies: single-window clearance for large-scale events, visa facilitation for esports athletes, and research and training centres for talent, similar to traditional sports academies. The industry and government must work together to set clear standards for player welfare, parental controls, and anti-cheating frameworks to maintain integrity, he added.

"It is also equally important that the authority or body appointed by the government is independent, free of conflicts, and includes competent voices and representation from across different segments of the video gaming industry. Most importantly, this authority must consult with stakeholders who have been part of and shaped India's esports ecosystem from ground-up, so that the policies reflect the realities of players, teams, investors and organisers. Only then can the right policies be framed to safeguard the interests of players, teams, investors, and organizers who are working tirelessly to build esports into a sustainable and globally competitive industry," he said in the statement.

"Lastly, fostering education and awareness programs around gaming as a career will ensure that young aspirants and their families understand the opportunities and responsibilities involved. With these steps, India can build an ecosystem that is not just successful, but sustainable and globally competitive."