India's Gaming Industry Adapts to New Regulations

Real money gaming firms Dream11 and Gameskraft have announced they will not challenge the Promotion and Regulation of Online Gaming Act, 2025, which prohibits online money gaming. The industry has already begun winding down operations in compliance with the law. Meanwhile, a new industry group, the Indian Game Publishers and Developers Association, has been formed to represent the interests of video game publishers and developers.

In a significant development for the Indian gaming industry, prominent firms Dream11 and Gameskraft have announced their compliance with the newly enacted Promotion and Regulation of Online Gaming Act, 2025. This act prohibits all forms of online money gaming, prompting these companies to wind down their real-money operations. Additionally, a new industry group, the Indian Game Publishers and Developers Association, has been formed to represent the interests of video game publishers and developers.

Dream11 and Gameskraft's Response

Dream11 and Gameskraft have both stated that they will not challenge the new act and are focusing on aligning their operations with the new regulations. Gameskraft, which operates Rummy platforms, has already halted real-money services and cleared all regulatory dues. The company is now exploring compliant opportunities, prioritizing innovation, player safety, and regulatory alignment [1].

Flutter Entertainment, the parent company of Junglee, a popular skill-based gaming platform, has also suspended its real-money gaming operations in India following the sudden passage of the act. The company expressed disappointment with the abrupt regulatory change and is exploring legal avenues to restore constitutional protections for skill-based games [2].

Impact on the Industry

The new act has triggered an upheaval in the online gaming sector, with several platforms halting their real-money online gaming offerings. Fantasy sports platforms, including Dream11 and My11Circle, have also withdrawn their real-money services. This sudden shift is expected to have significant financial implications for these companies and the broader gaming ecosystem.

Dream11, for instance, had a $44 million sponsorship deal with the Board of Control for Cricket in India (BCCI), which it will now withdraw from due to the decline in projected revenue. This loss of financial support has forced the BCCI to search for replacement sponsors, adding further disruption to the sports ecosystem [2].

New Industry Group

In response to these changes, a new industry group, the Indian Game Publishers and Developers Association, has been formed. This association aims to represent the interests of video game publishers and developers in India, advocating for a regulatory framework that supports innovation and player protection. The formation of this group underscores the industry's commitment to navigating the evolving regulatory landscape and ensuring sustainable growth.

Looking Ahead

The Indian gaming industry is facing significant challenges in the wake of the new act, but it is also demonstrating resilience and adaptability. Companies like Dream11, Gameskraft, and Flutter are focusing on compliance and exploring new opportunities within the regulated space. The formation of the Indian Game Publishers and Developers Association further indicates a unified effort to shape the future of the industry.

References

[1] https://economictimes.indiatimes.com/tech/technology/gameskraft-complies-with-online-gaming-act-will-not-pursue-legal-action/articleshow/123518097.cms

[2] https://news.worldcasinodirectory.com/flutter-halts-real-money-gaming-in-india-after-sudden-nationwide-ban-on-online-money-games-119550