Top Indian startups in the real-money gaming space have begun shutting down operations after New Delhi effectively banned the sector through new legislation that’s now on the verge of becoming law.
On Thursday, the upper house of the Indian parliament passed the Promotion and Regulation of Online Gaming Bill, 2025 — proposing to completely ban real-money gaming while aiming to promote casual online games and e-sports. The vote came just a day after the bill cleared the lower house, leaving only presidential assent before it becomes law — a formality expected to happen soon.
Shortly after the bill passed in the parliament, Indian unicorns Dream Sports and Mobile Premier League (MPL) — along with other startups like Gameskraft, Probo, and Zupee — began shutting down their real-money gaming operations. Some of these companies informed employees of their decision following the bill’s passage in the lower house on Wednesday, while others began notifying users directly through their apps.
Dream Sports, which counts investors including Tiger Global, Multiples, Alpha Wave Global, and TCV, has shut down its recently launched quick-play fantasy gaming app, Dream Picks. Its other apps involving real-money transactions, including the widely-popular Dream11 and Dream Play, were still operational at the time of filing. However, TechCrunch has learned that the Mumbai-based startup plans to shut down its real-money gaming business entirely once the legislation comes into effect.
At its town hall meeting on Wednesday, the startup informed its employees about the implications of the law, a person familiar with the matter told TechCrunch, requesting anonymity as the meeting was internal. Indian site Entrackr reported some details about the meeting earlier.
Dream Sports was planning to expand outside India, two people privy to the information informed TechCrunch, on condition of sharing it anonymously, as the plan was not public.
The startup also had some partnership talks for its Indian real-money business earlier this week that were about to be finalized, an investor source told TechCrunch.
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A Dream Sports spokesperson declined to comment.
Similar to Dream Sports, MPL, backed by investors including Peak XV, Times Internet, MSA Novo, and Crown Capital, has suspended all real-money games and is no longer taking deposits.
“Deposit cash (minus GST) will be available for withdrawal from 22 Aug. 2025,” a notification on the MPL app reads.
Zupee, backed by investors including WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, and Z47 (formerly Matrix Partners India), has also shut down real-money games with immediate effect.
“In line with the new Online Gaming Bill 2025, we are discontinuing paid games, but our hugely popular free titles like Ludo Supreme, Ludo Turbo, Snakes & Ladders, and Trump Card Mania will continue to be available for all users for free,” a Zupee spokesperson said in a statement.
Probo, another Peak XV-backed startup, which also counts Elevation Capital and The Fundamentum Partnership among its key investors, stopped its real-money gaming operations after the parliament greenlit the legislation.
“As unfortunate as it is, we respect the government of India’s latest Online Gaming bill. In light of this development, Probo has decided to discontinue its real-money gaming (RMG) operations with immediate effect until further notice,” the Gurugram-based startup said.
Bootstrapped startup Gameskraft has also stopped accepting money on its rummy apps as a result of the legislation. Similarly, Times Internet-owned fantasy cricket game Cricbuzz11 has discontinued its operations.
“Deposits (net of GST) will be refunded to bank account within 30 days,” the app says on a notice to users.
In addition to the shutdown of real-money gaming operations, many employees at these startups have begun searching for new jobs, with hundreds posting about their job hunt on social media.
“We no longer have a secure job, as these companies are expected to cut some roles in the coming days to sustain their business and satisfy investors,” one employee, who requested anonymity for fear of jeopardizing future opportunities, told TechCrunch.
Even though these startups could challenge the law in the Indian Supreme Court once it comes into effect, most have chosen not to pursue that route.
“This assessment is accurate — they will have a tough fight in the Supreme Court,” a public policy expert working with some of these real-money gaming startups told TechCrunch, requesting anonymity for fear of losing clients.
Real-money gaming startups in India have a combined enterprise valuation of ₹2 trillion (approximately $23 billion), generate cumulative revenues of ₹310 billion (around $3.6 billion), and contribute ₹200 billion (roughly $2.29 billion) annually in direct and indirect taxes, per estimates cited by industry bodies in their letters to the Indian Prime Minister and Home Minister earlier this week. They also project a 28% compound annual growth rate that would double the industry’s size by 2028.
