THE FALLOUT from India’s Promotion and Regulation of Online Gaming Act has left the real money gaming (RMG) industry reeling. Companies in the sector are now either pivoting towards free-to-play models or laying off staff, as the certainty of the lucrative revenues they once enjoyed has all but vanished under the blanket ban on RMG.
Popular platforms such as Zupee, WinZo, Mobile Premier League (MPL), and PokerBaazi have recorded a 60%–95% drop in new installs since 20 August, when the online gaming bill was introduced and passed in the Lok Sabha. The figures, sourced by ET from app intelligence firm AppTweak, underline the scale of disruption to the industry.
Dream11, the country’s giant in RMG, is attempting to offset the impact by pivoting towards artificial intelligence (AI) opportunities, with a particular focus on the creator economy.
Storyboard18 recently reported that Games24x7, the parent company of My11Circle and RummyCircle, has begun large-scale layoffs, with around 400 employees affected. Similarly, Galactus Funware Technology Pvt. Ltd., the parent firm of MPL, has carried out one of the biggest job cuts in the sector, letting go nearly 600–700 employees—almost its entire Indian workforce.
Meanwhile, Moonshine Technologies, the parent company of PokerBaazi, has dismissed more than 200 employees, close to half of its staff. The move came a day after Nazara Technologies scrapped plans to acquire the remaining stake in Moonshine, citing the regulatory headwinds.
The regulatory clampdown has also severely disrupted the sponsorship and advertising ecosystem tied to RMG. Once among the largest spenders in Indian sports and entertainment marketing, RMG platforms have drastically cut back on ad campaigns, title sponsorships, and influencer partnerships. Major sporting leagues, teams, and digital content creators that relied heavily on this category for revenue are already feeling the pinch
The uncertain future of RMG in India has forced companies to rethink their business models. Some are shifting to free-to-play gaming, while others are exploring expansion into international markets where regulations are more favourable.
