When India’s Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, banning real-money online games, it shook the fantasy gaming world to its core. But as headlines predicted shutdowns, something unexpected happened, his shake-up became a springboard for new ventures and ideas.
Regulatory Shockwave Redraws the Startup Map
A measure banning cash-stakes games was unanimously approved by both houses of Parliament on August 21, 2025. Big players like Dream11 and MPL, which are worth $8 billion and $2.5 billion, respectively, were placed in a vulnerable position. The sector was prepared for significant layoffs, app shutdowns, and a drop in foreign investment.
Leaders in the industry shared these worries. People Group founder Anupam Mittal called the general ban “moral policing disguised as policy,” citing the potential for economic repercussions and widespread migration to offshore platforms that carry a high risk.
From Ban to Boom: The Unexpected Startup Surge
Snapdeal co-founder and Shark Tank India judge Kunal Bahl saw an opening amid the confusion. According to him, the crackdown on real-money gaming has led to a “startup explosion,” which has shifted investment and skill towards other, legal tech endeavours.
The bright side of his August 25, 2025, comment is that, despite its challenges, regulatory change can inspire an entrepreneurial spirit.
Startups Pivot Smart: Beyond Gaming
Many gaming companies are already adapting:
- WinZO is breaking into the U.S. market, launching a short-video format to diversify its content and reduce reliance on banned gaming models.
- Platforms like Zupee, MPL, Dream Sports, and Probo have begun pulling the plug on their real-money operations, shifting toward e-sports and casual, non-monetary formats.
A Booming, Reimagined Tech Scene
Despite being disruptive, the restriction seems to be achieving something unexpected: it is fostering innovation. In order to comply with the new regulatory framework, entrepreneurs are turning their attention from gambling to tech solutions, which could expand India’s startup sector.
This moment could mark a regulatory reset, shifting the country’s tech narrative from fantasy gaming to deep-tech, media, ed-tech, and wellness tech sectors.
Also Read: From Lawyer to Donkey-Milk Pioneer: The Story of Aindhinai
