From IPL team jerseys to prime-time ad slots, real-money gaming brands have become impossible to miss in India’s marketing landscape. But with the President giving assent to the Promotion and Regulation of Online Gaming Bill, the game has changed overnight. While the move addresses concerns of addiction and fraud, it also leaves media agencies and advertisers recalibrating strategies in an industry that had turned gaming into one of their biggest clients.
The Law casts a wide net. Any online game that requires players to pay to participate in hopes of winning cash prizes is deemed illegal, whether it’s a ‘skill’ contest such as fantasy cricket or a chance-driven game like poker and rummy. On top of this, it prohibits advertising and financial transactions tied to these platforms, signalling a sweeping regulatory crackdown.
“The Promotion and Regulation of Online Gaming Act establishes a clear and unified national framework for the sector by distinctly defining ‘Esports’ as separate from *’real-money gaming (RMG).’ This clarity is a landmark step, aligning India with international best practices where Esports is recognised as a competitive, skill-based activity, independent of gambling or betting,” says Lokesh Suji, Director, Esports Federation of India.
The government has defended the move on three grounds. First, to tackle rising cases of addiction and financial distress, particularly among younger players. Second, to stamp out links between money-gaming and money-laundering, fraud or other criminal activity. And third, to establish clear regulatory boundaries by distinguishing gambling-style play from legitimate digital entertainment.
For India’s biggest real-money platforms, Dream11, MPL, WinZO and others, the measure represents a seismic disruption. Their real-money gaming businesses in India have effectively been outlawed, although they could, in theory, pivot towards free-to-play formats or overseas operations. In contrast, the government has chosen to draw a sharp line between gambling-style formats and non-monetised gaming. Esports and social games, where no cash prizes are at stake, have been granted official recognition and are even earmarked for promotion, giving the industry a safer space to evolve.
The language of the Act is unambiguous. All online games involving paid entry and the chance of cash winnings fall under the prohibition, regardless of whether they rely on skill or chance. Just as important, the promotion of these services is outlawed. Influencers, celebrities and advertisers who continue to endorse money-gaming platforms face the prospect of heavy fines and, for repeat offenders, even jail time. It’s a sharp break from the glossy sponsorships and high-profile tie-ups that have dominated India’s cricket seasons for years.
“Real Money Gaming (RMG) accounted for 85%+ of the online gaming market in India. You cannot recover from losing that kind of business overnight. The smaller players might shut down and the larger ones might pivot to Esports and other categories. But there will be significant downsizing and cost-cutting expected in the industry,” says Raghav Maheshwari, Chief Business Officer, Mobavenue.
“RMG was one of the largest advertising categories out there - with Programmatic being the primary channel used. Programmatic platforms and publishers are facing a significant loss of revenue in the coming quarters. Some of it will be offset by the festive commerce demand in the OND quarter, but a large hole will still remain,” he adds.
The advertising fallout is instant. Real-money gaming platforms have been among India’s biggest spenders, with Dream11 even securing the fifth spot on Pitch Madison Advertising Report (PMAR) 2024’s top advertiser list. Their visibility peaked on cricket’s grandest stage, from the IPL to bilateral series, where they dominated sponsorships. With the Bill turning into a law, those deals disappear in a flash, along with some of the most aggressive marketing war chests the industry has seen.
“Two things change overnight: (a) Ads for prohibited money games are off the table now; (b) Brand safety for Esports/casual games widens. We’ll see budget reallocation – notably a 20–30% pivot from RMG performance bursts into Esports leagues, creator content, and programmatic in-game,” says Rohit Agarwal, Founder, AlphaZegus Marketing. “Digital ad spend is growing (+8.1% overall ad growth in 2024), so compliant gaming formats should absorb a good chunk of that redirected spend through safer formats (virtual billboards, branded tournaments, shoppable creator streams),” he adds.
Two major shifts are expected in the gaming landscape: First, a migration from money-at-stake ‘pay & win’ models to progression and collection loops such as battle passes, cosmetics, and creator-led challenges; and second, a move away from paid contests towards free competitive play and streaming communities.
“In 2024, around 155 million Indians engaged with real-money gaming formats, with nearly 110 million playing daily. Many of these users are unlikely to stop gaming altogether; instead, they’ll transition into free-to-play ecosystems where rewards come in the form of social status, Esports ladders, and creator-driven events. This will likely drive higher Monthly Active Users (MAUs) in casual and Esports titles, but at the same time, result in lower Average Revenue Per Paying User (ARPPU) overall,” explains Agarwal.
Several leading advertising networks in India have set up dedicated gaming verticals to cater to fantasy sports, real money gaming, and Esports clients—but with RMG now out of the equation, their revenues are bound to take a significant hit.
Yet there is a silver lining. By formally supporting Esports, the Act gives a long-awaited boost to competitive gaming that relies on skill, not betting. Professional players and tournament organisers could see more legitimacy, infrastructure and sponsorship flowing into this segment.
“With the passing of the Promotion and Regulation of Online Gaming Act, 2025, the gaming industry stands at a true inflection point. This law was the need of the hour and is a welcome step toward providing long-awaited clarity. For the first time, the law formally recognises Esports as a competitive sport, while also ensuring much-needed uniformity in regulations across states. Until now, the absence of a national framework had led to fragmented state-level laws and confusion. With a clear framework now in place, we can expect it to fuel healthy competition, spur innovation, and attract investments that will strengthen and accelerate the growth of the entire gaming ecosystem,” says Rohit N Jagasia, Founder & CEO, Revenant Esports.
In simple terms, the message is stark. For gamers: cash-prize play may soon be off the table. For marketers: endorsements and advertising linked to money-gaming platforms are likely to be banned, demanding a fresh allocation of sponsorship and influencer budgets. For the industry itself: survival now depends on pivoting towards non-monetised formats and building credibility in Esports and casual play.
“Recognising online gaming as a legitimate industry is the need of the hour. Many countries acknowledged its importance years ago. The solution isn’t prohibition but education and regulation. Just as we learn road safety, gaming too needs awareness, safeguards, and responsible practices, something the industry was already working on,” says Shivashish Tarkas, Founder, The InterMentalist.
According to reports, Dream11, Gameskraft and other real-money gaming firms are planning to contest the newly enacted ban in court. The firms are likely to move the Karnataka High Court with a writ petition soon.
In the immediate aftermath, BCCI will soon invite brands to bid for the Indian cricket team’s jersey sponsorship, as displaying Dream11’s logo could now attract penalties. Dream11 had replaced Byju’s in 2023 in a three-year deal worth Rs 358 crore. The men’s team will play the Asia Cup from September 9 in the UAE, while the women face Australia at home from September 14.
“For other gaming formats, the Act brings significant changes that will require adjustment and rethinking of existing approaches. What we are witnessing is a natural bifurcation of the ecosystem: Esports and competitive gaming are set to flourish under institutional support, while other segments will evolve to align with the new framework. The outcome is a more transparent, stable, and future-ready environment for brands, investors, and most importantly, for young players who can now pursue Esports as a recognised career path,” says Sumedha Mahajan, Head of Marketing - Operations and Client Growth, Ampverse DMI.
India’s ban on money-based online gaming doesn’t just hit pause, it flips the board entirely. The pieces are scattered, and both brands and gamers must find new rules of engagement. Some will fold, others will reinvent, but one thing is certain, the game itself isn’t ending, it’s just being played on a brand-new field.
