Nov 1, 2025

The curtains have come down on real-money gaming, but even before the dust could settle on India’s multi-billion-dollar RMG turf, the industry’s next act is beginning to unfold. While they shut down their real-money gaming business within days of the Supreme Court slapping a blanket ban on games of luck, many of them scrambled to the consumer-tech vertical – be it short-form entertainment or wealthtech – to stay in the bigger play. A couple of months after Parliament passed the Promotion and Regulation of Online Gaming Act, 2025, the legislation officially came into force on October 1, signalling a decisive shift in India’s stance on real-money gaming. The government defended the move, citing that nearly 450 Mn Indians were collectively losing around INR 20,000 Cr on real-money games every year. The law banned all such games, prohibited advertising, and barred banks and financial institutions from processing related transactions, effectively freezing a once-vibrant $2.4 Bn market that had cradled home-grown unicorns like Dream11, MPL and Games24x7. The diktat came as a lethal blow to an industry saddled with a 28% GST levy from 2023. Inc42 went on the trail of gaming biggies after the whip cracked. While smaller players have withered away, major platforms have pivoted to social and casual gaming. “What many startups spend years building in terms of core capabilities, these companies already have that,” said an investor in a real-money gaming firm, refusing to be identified because of the sensitivity of the matter. “When their main business becomes unsustainable, it’s only natural to pivot to another consumer-tech opportunity. That’s exactly what we’re seeing – new products built on old strengths.” WinZO and Zupee have ventured into microdramas. Dream Sports, the parent of Dream11, has turned to wealthtech with Dream Money , an investment platform launched soon after the ban. Earlier this month, WinZO, which has taken its microdramas to the US, widened its portfolio by rolling out ZO Gold, a micro-investment app that lets the user invest in digital gold as little as INR 2. Zupee, on the other hand, claimed that its Zupee Studio has crossed 10 Mn downloads on Google Play within months and plans to upload seven original series by the year-end. But, as the sector recalibrates itself, a larger question looms: How sustainable are these hurried pivots as the government is keen on ending India’s high-stakes digital gamble? “These platforms have little choice but to find an alternative revenue model,” an analyst tracking the policy shift said, seeking anonymity. “They have the scale, engagement and user base. The challenge is monetisation. Whether these new models can ever match the profitability of real-money gaming remains to be seen.” Game Goes To Consumer-Tech Space The startups that suffered the blaze of the ban were not mere gaming companies. At the core, they have always been consumer-tech powerhouses, with deep engineering talent, strong investor backing, and product instincts to reinvent themselves. When the shutters were downed on real-money gaming, they redirected their expertise into newer territories, from short-form digital entertainment to wealthtech and micro-investments. Insiders see these moves as long-term bets, and not quick fixes. Having mastered product development, data analytics, and user engagement, the now-defunct RMG startups are leveraging their experience to explore adjacent categories that speak to India’s evolving digital consumers. There are two main themes emerging. One is wealth and aspiration products for a New India, where disposable incomes are on the rise in Tier I and II cities. The other is digital entertainment such as microdrama, casual gaming, or short-form video platforms. “These categories make sense because these companies understand both money and entertainment,” he added. In the short term, wealthtech and microdramas are expected to grow faster. Over a five-to-ten-year horizon, casual and video gaming could scale more sustainably as India’s monetisation and developer ecosystems mature. “Replicating RMG-level revenues in the short run is nearly impossible,” Dhruv Garg, a tech policy analyst, said. “India’s ad monetisation is still far below global averages, and users’ willingness to pay for entertainment remains limited. These pivots are about staying relevant and resilient and not for making immediate profit.” RECOMMENDED FOR yOU Content Clicks But Fintech May Falter The move into short-form entertainment appears logical. The fraught gaming platforms are now producing snackable microdramas such as short, high-engagement videos designed to retain users and attract advertisers. “They have a massive user base. So, keeping those users engaged while regulations remain unclear is the key,” said Ananay Jain, partner and national industry service leader for media and entertainment at Grant Thornton Bharat. “But can they earn as much as they did from RMG? I have my doubts.” But, the pivot to financial services has raised eyebrows. “Moving into short video content still makes sense as it’s part of the entertainment universe,” reasoned an industry executive familiar with Dream Sports’ plans, seeking to refrain from being identified. “But financial services are a completely different ball game. Trust is a huge barrier. It’s not easy to convince a gamer to suddenly start investing money.” The scepticism stems from a fundamental mismatch in user behaviour. A customer willing to spend small amounts for fun wouldn’t necessarily be an investor in gold or mutual funds. Financial products demand trust and carry high acquisition costs. Such challenges make fintech a difficult pivot for gaming firms. Industry insiders admit that these shifts are less about profitability and more about survival. One gaming startup founder discreetly said that many of these verticals are “placeholders” that help companies stay operational until courts or policymakers offer clarity. “Ultimately, all these companies want to do one thing – keep their users engaged,” said Jain. “Whether through short videos or casual games or gold investments – it’s about buying time until the rules of the game change again.” Casual Gaming Seems A Safer Bet Among all the avenues the real-money gaming startups are exploring, casual gaming appears to be the most pragmatic and sustainable way forward. It is not just a question of survival, but of strategic continuity, according to industry observers. Casual gaming allows companies to retain their players without breaching the new regulatory guardrails that prohibit cash-based play. It leverages their existing strengths such as gamification mechanics, data-driven personalisation, and massive userbase, while shifting revenue reliance away from entry fees and prize pools to advertising, sponsorships, and in-app purchases. The cost is a thinner margin. “Casual gaming is a sector that aligns closely with what they were already doing. If you look at the regulations, the problem isn’t with gaming itself but it’s with cash-in and cash-out. So, if the companies create tournament-style contests or fantasy formats without entry fees, there’s still huge potential to engage large user bases,” Jain said. This distinction between games that involve money and those that earn from engagement has become the key survival strategy for startups like MPL, Games24x7 which have started redirecting their design and tech teams towards creating non-monetary, skill-based experiences. India’s early fantasy sport platforms experimented with this model. ESPN’s Super Selector, launched in the early 2000s, was a non-monetary contest that gained immense popularity purely on competitive engagement and bragging rights. It is the same logic that plays for today’s companies – create community-based contests where users invest time, not money. For companies that have spent years perfecting player retention strategies, this pivot is not entirely unfamiliar. Features like leaderboards, badges, streak rewards, and social tournaments – hallmarks of RMG platforms – can be seamlessly integrated into casual games, mobile puzzles, or fantasy-like ecosystems. In mature markets like the US or South Korea, casual gaming companies derive 70–80% of their revenue from ads and in-app purchases, but these ecosystems took years to reach scale. In India, the average revenue per user (ARPU) remains among the lowest globally, estimated at INR 20–35 a month, compared to over INR 300 in developed markets. “Can they earn the same profits as RMG? Probably not,” Jain said. “But can they sustain and grow? Definitely. Global examples like Candy Crush, PUBG, or FIFA Mobile show that the model can be viable if executed well. It’s slower, but far more stable.” Caught Between Courts And Codes Even as the sweeping ban on games involving cash deals has brought a semblance of order, the industry remained mired in regulatory limbo. The Promotion and Regulation of Online Gaming Act, 2025 has taken effect, yet much of its operational framework is still being worked on. And, this time, casual gaming and esports too may feel the heat. “The Act itself is under judicial scrutiny,” said Jain of Grant Thornton Bharat. “Until the courts and ministries provide definitive guidance, startups are playing a waiting game. They don’t want to shut down completely, but they can’t fully commit to new models either.” Multiple petitions from gaming firms across various high courts have now been consolidated ahead of a crucial Supreme Court hearing on November 4. Beyond courtrooms, a lack of administrative clarity is equally paralysing for the startups. The government is yet to issue detailed notifications or set up a regulatory authority under the new law. With the uncertainty looming large, the players are groping in the dark for answers to some key questions: What kind of business and revenue models will be permitted? Are in-app purchases, spin-the-wheel features, reward-based engagement mechanics compliant? Where exactly does the line fall between social, skill-based, and real-money gaming? “Without clarity, even non-RMG formats risk falling into a compliance vacuum. Companies are therefore treading cautiously, innovating enough to stay relevant, but stopping short of fully scaling new ventures until the rules are clear,” Garg said. As the industry shuttles between adaptation and anticipation, the score remains a love-all for India’s real-money gaming startups. [Edited by Kumar Chatterjee]