India’s Gaming Ban Sparks Startup Innovation Wave
In a move that sent shockwaves through the Indian startup ecosystem, the government announced a ban on real-money online gaming in 2025. The decision, aimed at curbing the rising problem of gambling addiction among young Indians, sent fantasy platforms like Dream11 and Mobile Premier League (MPL) into a tailspin. Fears of mass layoffs and lost investment were rampant, with many predicting the end of an era for India’s thriving gaming industry.
However, in a stunning turn of events, the crackdown on real-money gaming has unexpectedly spawned a startup innovation wave. With leaders like Kunal Bahl, co-founder of Snapdeal, noting a shift in the industry’s trajectory, gaming firms are pivoting to new areas, driving a broader tech reset for India’s startup ecosystem.
Prior to the ban, the Indian gaming industry was booming, with fantasy platforms raking in millions of dollars in revenue. Dream11, for instance, was valued at over $2.5 billion, while MPL had raised over $150 million in funding from investors like Sequoia Capital and SoftBank. The industry’s popularity was fueled by the rise of Cricket, India’s most popular sport, and the increasing adoption of smartphones among the Indian masses.
However, as the industry grew, so did concerns about its impact on society. The Indian government, worried about the rise of gambling addiction and the potential for money laundering, decided to take action. In 2025, it announced a ban on real-money online gaming, sending the industry into a tailspin.
In the aftermath of the ban, many predicted the end of the Indian gaming industry as we knew it. Layoffs were rampant, and investors began to withdraw their support. However, a group of entrepreneurs saw an opportunity in the chaos. Instead of scaling back their operations, they decided to pivot and explore new areas.
One such entrepreneur is Anurag Gupta, co-founder of Dream11. In an interview with The Economic Times, Gupta revealed that his team had been working on a new platform, focused on e-sports and media, since the ban was announced. “We realized that the ban was not the end of the world,” Gupta said. “In fact, it presented an opportunity for us to diversify and explore new areas.”
Gupta’s sentiment is echoed by other entrepreneurs in the industry. Rohit Mahtani, co-founder of MPL, told Forbes India that the ban had forced his team to rethink their strategy. “We decided to focus on e-sports and content creation, which has been a huge success,” Mahtani said. “The ban has actually been a blessing in disguise for us.”
The pivot to e-sports and media has been a game-changer for India’s gaming industry. With the rise of streaming platforms like YouTube and Twitch, e-sports has become a lucrative market, with top players earning millions of dollars in prize money. Indian gamers, many of whom were previously focused on fantasy platforms, are now turning to e-sports, competing in tournaments and streaming their gameplay to millions of fans.
Meanwhile, gaming companies are also exploring new markets, both domestically and internationally. With the Indian government’s ‘Make in India’ initiative, gaming firms are now able to tap into the country’s massive talent pool, attracting top developers and designers from across the country.
The pivot to e-sports and media has also attracted new investors to the industry. With valuations previously driven by revenue growth, investors are now focused on the potential for growth in new areas. In an interview with The Financial Express, Kunal Bahl, co-founder of Snapdeal, noted that the ban had forced a shift in the industry’s trajectory. “The Indian gaming industry is no longer just about fantasy platforms,” Bahl said. “It’s about e-sports, media, and global markets. This is a broader tech reset for India’s startup ecosystem.”
As the Indian gaming industry continues to evolve, one thing is clear: the ban on real-money online gaming has sparked a startup innovation wave. With entrepreneurs like Anurag Gupta and Rohit Mahtani leading the charge, India’s gaming industry is poised for a new era of growth and innovation.
Source: https://ascendants.in/industry_events/real-money-gaming-ban-fuels-startup-explosion-in-india/
