₹17,000 crore ad spend at stake: How deep will the real money gaming ban hit the economy?

The government’s Online Gaming Bill, 2025, which bans all real-money online games, has cleared the Lok Sabha and is slated for Rajya Sabha consideration. It is not yet law, but platforms are already bracing for impact.

The bill, introduced by Union Minister Ashwini Vaishnaw, enacts a comprehensive ban on all money-based online games, including fantasy sports, poker, and rummy. The legislation differentiates between financial gaming, deemed "harmful," and eSports or social gaming, which will continue to receive support.

1) What is the meaning of real money gaming

Real-Money Gaming (RMG) is the act of betting, wagering, or investing money — or any other monetary entity — on a contest in which one party wins while another loses, in order to claim a prize and earn more than what was originally staked.

2) What are key aspects of real money gaming

• Financial stakes: Players deposit real money into these games.
• Potential earnings: Participants can win monetary prizes or cash-redeemable rewards.
• Variety of games: Includes skill-based formats like poker, rummy, and fantasy sports (cricket, football), as well as chance-based formats like slots, roulette, and Teen Patti.
• Revenue model for platforms: Platforms earn through fees charged on the wagered amount.

3) What the bill does (and why impact is 'severe')

• Prohibits offering, advertising, facilitating, or participating in any “online money game”—defined as a game where users deposit money expecting financial return (covers fantasy, rummy, poker, ludo-for-cash, etc.).
• Exempts esports and social games without monetary stakes.
• Imposes penalties including heavy fines and possible jail terms; bans banks and payment intermediaries from processing such transactions.
• Status on August 21, 2025: Cleared the Lok Sabha; headed to Rajya Sabha. Legal challenges are expected, citing earlier jurisprudence distinguishing “games of skill” from gambling.

4) What will be the impact on top 10 companies

1. Dream11: IPL-driven cash contests outlawed; India revenue core at risk pending litigation; may pivot to free-to-play, fantasy “practice” models, or sponsorship deals.
2. Games24x7 (RummyCircle/My11Circle): Monetisation of rummy and fantasy sports halted; high exposure forces cost resets; appeals expected.
3. MPL: After 2023’s 28% GST hit and layoffs, a full ban could trigger India RMG shutdown; shift to overseas and non-RMG titles likely.
4. Gameskraft: One of India’s largest RMG players; GST case already in Supreme Court — ban adds another layer of regulatory pressure.
5. WinZO: Profitable RMG model disrupted; ad spends and user acquisition economics collapse; will pursue legal recourse and test non-RMG formats.
6. Zupee: Cash Ludo formats ended; will push toward free/ads-based play and global expansion.
7. Junglee Games: Rummy cash offerings suspended; pivots to overseas and social gaming.
8. Head Digital Works (A23): Rummy and poker halted; Adda52 poker acquisition faces stress.
9. PokerBaazi (Moonshine): Online poker core business wiped out; without cash games, marketing spend unsustainable.
10. Nazara: No direct RMG revenue; impact felt in valuation and investments — stake in Moonshine vulnerable to write-down.

5) How many categories of games are recognised and what is banned

The bill defines three categories:

• E-sports: Competitive, skill-dependent events with rules and multiplayer engagement.
• Online Money Games: Skill-based or chance-based games involving wagers, deposits, or purchase of tokens/coins; this category is banned.
• Online Social Games: Entertainment, recreation, or skill-development formats without monetary stakes; subscription or one-time access fees allowed.

7) Will there be any ripple effect

The ban is expected to ripple across India’s digital economy. The RMG industry has generated over 1.5 million direct and indirect jobs and attracted more than $2.5 billion in venture capital in recent years. With RMG ads alone accounting for more than ₹17,000 crore in annual spends, analysts warn that this capital could vanish overnight — posing a severe blow to digital media, advertising, and employment.