SECOND LIFE: RMG OUTFITS TRY NEW PLAYING FIELDS

Six months after real-money gaming was banned, the industry is trying to reboot.

- Radhika P. Nair

Before the real money gaming ban, 95% of our revenue came from Dreamll, and 100% of the profits. Now, we are just using yester year profits as cash,” says Harsh Jain, chief executive of Dream Sports.

Six months since the government ban took effect in October last year, the companies that once collectively handled thousands of crores in transactions are in disarray. Many have shut down, some are dealing with ongoing enforcement actions, and a handful have pivoted, attempting to rebuild across categories such as stockbroking, microdramas and free-to-play games. But so far, none has matched what was lost.

India’s gaming industry was estimated to be worth around $6 billion in 2024-25, according to consulting firm Redseer, with real money (RMG) contributing roughly 71% of total revenue.

The sector was dominated by a handful of players, such as Dreamll, Games24x7, Gameskraft, Mobile Premier League, Zupee, WinZO and PokerBaazi, who offered real-money formats such as fantasy sports, rummy and poker. Dreamll had over 250 million users, while WinZO had over 200 million, Zupee over 150 million, and Games24x7 about 120 million.

The sector had also attracted significant investor interest, with Tiger Global, Peak XV Partners, DST Global, Falcon Edge, Matrix Partners and WestCap Group among the backers. Over the past five years, global investors had poured in at least $2.8 billion into India’s RMG market, backing rapid user growth and strong monetization.

All of that came to a grinding halt when the Indian government passed the Promotion and Regulation of Online Gaming Act, 2025, effectively outlawing formats that involved entry fees and cash rewards.

Before the ban, the model was straightforward. Users paid entry fees to participate in contests or games, a portion of which was redistributed as winnings, while the platform retained a commission of around 10-20%.