Lessons for startups from real money gaming ban

The Union government's ban on real money gaming has shaken the digital economy.

- Shweta Rajpal Kohli

Billions of dollars in value have evaporated, layoffs loom, and investor sentiment has soured. But behind these visible consequences lie deeper lessons for founders about the uneasy but unavoidable relationship between startups and the State.

First, national interest always comes first. When governments perceive risks to social well-being or public order, no promise of growth, jobs, or investment can outweigh what they define as the public good.

Second, no one is too big to be shut down. Neither billion-dollar valuations nor hundred-million user bases guarantee immunity. IF anything, scale increases regulatory scrutiny rather than shielding against it.

Third, data outlasts narrative. A compelling pitch may work for a while, but once evidence of harm surfaces — addiction numbers, debt defaults, family distress—it is data that regulators heed.