India's games companies scramble as real-money ban wipes billions off market

India’s games industry is in a state of dramatic upheaval after the government swiftly enacted a law banning real-money gaming - leaving the country’s top developers and publishers scrambling and impacting billions of dollars of investment.

While the world’s top companies descended on Gamescom - where India had its own Pavillion - the country announced and pushed through the Promotion and Regulation of Online Gaming Act, 2025 in just a few days.

The bill's progress into law was rapid. It was introduced on August 20th and by August 22nd it received presidential assent.

"Unchecked expansion"

It claimed real-money gaming, which includes card games and fantasy sports, has led to “serious social, financial, psychological and public health harms, particularly among young individuals and economically disadvantaged groups”. It also linked the “unchecked expansion of online money gaming services” to financial fraud, money laundering and even the financing of terrorism.

The law comes with significant penalties, including imprisonment for offenders. The legislation also recognised a framework to support the wider industry, but has been damaging for India’s top games companies.

The India Gaming Report 2025, put together by IEIC and WinZo, said that real-money gaming accounted for approximately 86% of the sector’s revenue and had emerged as its “primary growth driver”. It hit $3.2 billion in 2024 (compared to $3.7bn for the overall online gaming industry), with a forecast of $7.3bn by 2029.

Between 2019 to 2024, $2.8bn was invested by foreign companies into India's games market. $2.5bn of that was in real-money gaming.

Highlighting how significant RMG had become, the report noted pay-to-play, as it is sometimes referred to, had been able to “successfully plug this gap” between otherwise high downloads and low player spending in games.

It also noted the future of online gaming in the country “hinges on the joint success and growth of these two segments” - referring to RMG and non-RMG.

PokerBaazi offline after $117m Nazara deal

Nazara, which has been on an M&A spree that has seen it acquire UK companies such as Fusebox Games and Curve Studios, has seen hundreds of millions of dollars slashed off its market cap since the bill was passed. It currently has a market cap of approximately $1.24 billion, compared to $1.5bn just a month ago.

The company has a wide array of investments, as CEO and joint MD Nitish Mittersain noted in our recent interview. One of its major deals last year was a $117 million investment in Moonshine Technology, in which it currently holds a 46.07% stake. The developer runs real-money game PokerBaazi, which has now paused its operations in India.

The website cites the Online Gaming Bill as the reason for the decision to take the platform offline. While players can still withdraw money from their wallets, there has been no indication when or if PokerBaazi will return.

In a statement, Mittersain claimed the move would have “no impact” on Nazara’s consolidated revenue or EBITDA. He added it would evaluate the potential impairment of its Moonshine investment.

"The Indian gaming industry is going through a tough phase right now - disruption, investor nervousness, and real impact on jobs. We’ve seen some amazing founders shaken, teams scattered, and momentum pause," he said.

Mittersain added: "To every founder, creator, and team feeling the pressure right now - keep going. This too shall pass. The ecosystem will emerge leaner, wiser, and ready to build the next level."

WinZo’s $100m fundraising and expansion plans

WinZo, described by the firm as India’s largest interactive entertainment platform, has more than 250 million registered users in India and Brazil, hosting over 100 third-party games. To date, it has raised $100m from investors including Griffin Gaming Partners, Courtside Ventures and Makers Fund.

One of WinZo’s key revenue streams was real-money gaming. In light of the new laws, WinZo has now removed the impacted games in its portfolio. Shortly after, it announced its US expansion and move into short-form video content.

Co-founder Saumya Singh Rathore said India’s startup story and online gaming industry “stand at a defining juncture”.

“The path ahead will shape government–industry collaboration, inspire young entrepreneurs, and reaffirm global confidence in Indian innovation,” she said.

Along with Nazara, the firm has been supportive in bringing Indian companies to global trade shows.

Online gaming platform Mobile Premier League, which let users compete in tournaments to win real money, said it will comply with the bill and has removed all offerings involving money on its platform in India effective immediately.

A Series E funding round in 2021 saw Mobile Premier League raise $150m at a $2.3bn valuation, becoming a new unicorn in India. The year prior, it had secured a $90m investment round.

“Our focus was always to be the largest competitive gaming platform in the world irrespective of the business model, and we remain committed to providing competitive, free-to-play, non-money based gaming experiences to our customers in India,” read a statement. “We will keep our community informed about next steps as we complete the shutdown process for online money games. 

“We continue to believe in the India growth story and reaffirm our long-term commitment to the country including the vision of building from India for the world.”

Seismic shift

The investment community has pumped billions of dollars into real-money gaming’s growth in India. Anuj Tandon, a partner at Bitkraft Ventures and experienced leader at Krafton, YooZoo, Nazara and JetSynthesys, labelled the news a “seismic moment”. 

“It is no secret that Indian gaming industry revenues are dominated by real-money gaming companies - this has come in when at least two to three RMG companies were prepping for their IPOs which is clearly now a thing of the past,” he said. 

“Short-term RMG companies that have used their balance sheet to diversify will live to fight another day.”

The Lumikai Fund, which has invested in Indian companies like Bombay Play and Loco, released a statement on the matter maintaining its support for India’s games industry. It claimed its direct exposure to RMG was limited, making up 3% of its platform. It noted this was an “extraordinarily tough moment” for many in the real-money gaming space.

“Our vision is to build a world-class, multi-fund investment platform from India,” read a statement.

It added: “Our focus is future-first, backing category leading businesses that will define the next decade. We remain confident in the creativity, talent and entrepreneurial spirit that will drive this industry’s evolution and continued growth.”

Following a dramatic week for India’s games industry, a new trade body has been formed called the Indian Game Publishers and Developers Association (IGPDA).

Its aim is to create a unified voice for games companies in the country and help grow the sector. The country already has another trade body, the Game Developer Association of India.

While the Online Gaming Bill has sent shockwaves through the real-money gaming space, the legislation did outline a framework to support the wider sector moving forward as India’s games industry effectively hits the reset button.