As India bans real-money games, Dream Sports, MPL start pulling the plug

In a significant move, leading Indian startups in the real-money gaming sector have begun winding down their operations following the passage of new legislation by the Indian parliament. The Promotion and Regulation of Online Gaming Bill, 2025, which aims to ban real-money gaming while promoting casual online games and e-sports, was approved by the upper house on Thursday, just a day after it cleared the lower house. With only presidential approval pending, this law is expected to be enacted imminently. Following the legislative decision, prominent companies such as Dream Sports and Mobile Premier League (MPL), along with others like Gameskraft and Zupee, have initiated the process of shutting down their real-money gaming platforms. Notifications to employees and users were sent out shortly after the bill's passage, indicating a swift response to the impending legal changes. Dream Sports, known for its investor backing from firms like Tiger Global and Multiples, has ceased operations for its recently launched quick-play fantasy app, Dream Picks, while maintaining its other platforms, including the popular Dream11. However, insiders have revealed that the company plans to completely discontinue its real-money gaming business once the law takes effect. During an internal meeting, employees were informed of the law's implications, with plans for international expansion now on hold. Similarly, MPL, which has received funding from investors such as Peak XV and Times Internet, has halted all real-money gaming activities and is no longer accepting new deposits. Users were notified that any deposited funds would be available for withdrawal starting August 22, 2025. Zupee, supported by investors like WestCap Group and Tomales Bay Capital, has also immediately ceased its paid gaming offerings but will continue to provide its popular free games like Ludo Supreme and Snakes & Ladders. Meanwhile, Probo, which counts Elevation Capital among its investors, announced the discontinuation of its real-money gaming operations in response to the new legislation. The impact of the ban is palpable, with many employees at these startups seeking new job opportunities as the outlook for their current roles appears uncertain. Reports indicate a wave of job postings on social media as individuals brace for potential layoffs in the coming days. Despite the possibility of challenging the law in the Supreme Court, most startups seem hesitant to pursue legal action. According to a public policy expert, the road ahead would be fraught with challenges. The real-money gaming sector in India boasts a combined valuation of approximately ₹2 trillion (around $23 billion) and contributes significantly to the economy, raising concerns about the broader implications of the new law on the industry’s future growth and innovation.