Why Popular Apps Are Suspending Real-Money Gaming Amid India’s Betting Crackdown

Introduction

Over the past decade, real-money gaming has surged in India, with millions of users flocking to apps that let them play fantasy sports, poker, rummy, and other skill-based games for cash rewards. Platforms like Dream11, MPL, Zupee, and PokerBaazi became household names, attracting investments worth billions and giving rise to a thriving online gaming industry.

But in 2025, this booming sector has hit a massive roadblock. The Online Gaming Bill, 2025, recently passed by both houses of Parliament, has created a wave of panic across the industry. The law bans all online games involving monetary transactions, including fantasy sports and skill-based money contests.

As a result, leading startups have either suspended or completely shut down their real-money offerings in India. Apps that once thrived on user deposits and pay-to-play models are suddenly disabling payment gateways, refunding balances, and pivoting toward free or international markets.

What Is the Online Gaming Bill, 2025?

The Online Gaming Bill, 2025 is landmark legislation aimed at regulating and restricting online gaming platforms. Its core provision is straightforward but controversial:

• Ban on all online games involving monetary transactions.

  1. Any platform where users pay money with the expectation of winning cash or material rewards is now prohibited.

  2. This covers real-money fantasy sports, poker, rummy, betting-based apps, and even prediction platforms.

• Objective of the Bill:

  1. Prevent gambling addiction among youth and vulnerable groups.

  2. Reduce financial harm caused by excessive gaming losses.

  3. Curb illegal betting, money laundering, and terror financing that authorities say exploit loopholes in digital gaming.

While casual and free-to-play gaming remains unaffected, the bill effectively dismantles the real-money segment of India’s gaming ecosystem.

Also Read: Online Gambling Laws and Punishment in India

Why Is the Government Cracking Down?

1. Concerns of Gambling Addiction

One of the biggest drivers of the ban is the fear of addiction. Reports suggest that lakhs of young Indians have faced financial ruin after continuously betting on gaming apps. Unlike offline gambling, which is limited by geography, online platforms are accessible 24/7, leading to uncontrolled usage.

2. Financial Losses and Debt Traps

Apps like fantasy sports and rummy lure players with small entry fees but encourage continuous deposits. Several case studies show players taking loans or using credit cards to keep funding their accounts, often falling into debt traps.

3. Money Laundering and Security Risks

Authorities have flagged online betting apps as potential vehicles for hawala transactions, terror financing, and money laundering. Since money moves through digital wallets and UPI, it becomes difficult to track illegal transfers hidden within high-volume gaming transactions.

4. Social & Legal Pressure

Public interest litigations (PILs) in multiple High Courts and the Supreme Court demanded government intervention, claiming that real-money gaming was destroying families. Civil society groups, parents’ associations, and mental health advocates have strongly supported stricter laws.

5. International Precedents

Countries like China, Singapore, and the UAE already enforce strict controls or outright bans on betting-based gaming apps. India’s government argues it is aligning its policy with these nations to safeguard citizens.

Also Read: Is Online Gambling In India Legal

Which Popular Apps Have Suspended Real-Money Gaming?

The Online Gaming Bill’s immediate impact is visible in the shutdowns and suspensions announced by major players:

1. Dream11 & Dream Sports

1. Dream Sports paused its new apps Dream Picks and Dream Play (casual real-money platforms).

2. Official statement assured users that all balances are safe and withdrawable.

2. Hike (Rush)

1. Social media firm Hike has closed down its gaming platform Rush in India.

2. Founder Kavin Bhati Mittal said the company will now focus on the US market.

3. Zupee

1. Paid games discontinued, though free games like Ludo Supreme, Snakes & Ladders, and Trump Card Mania remain available.

2. The company emphasized compliance while retaining user engagement via free titles.

4. PokerBaazi (Nazara-backed)

1. Moonshine Technologies, which runs PokerBaazi, has stopped all real-money gaming.

2. The company is “evaluating its future course” post-legislation.

5. Probo

1. Shut down all real-money operations with immediate effect.

2. Statement expressed regret but pledged respect for government policy.

6. Mobile Premier League (MPL)

1. Suspended over 60 real-money titles across categories like fantasy sports, quizzes, and esports.

2. Users can still withdraw balances, but deposits and paid contests are blocked.

7. Gameskraft (Rummy & Pocket52 Poker)

1. Stopped “Add Cash” and “Gameplay services” for real-money rummy.

2. Assured users that withdrawals are open and funds are secure.

Together, these suspensions signal a complete halt of real-money gaming in India’s domestic market.

Also Read: Gambling and Gaming Laws: Copyright, Licensing, and Ethical Concerns Explained

How Are Startups Reacting to the Ban?

1. Shifting to Free-to-Play Models

Companies like Zupee are pushing their free games to retain users while monetizing through ads and in-app purchases.

2. Exploring International Expansion

Hike and others are eyeing markets like the US, where real-money skill gaming is regulated but legal.

3. Pivoting Toward Esports

Some startups plan to build competitive esports ecosystems, focusing on sponsorships and live streaming rather than betting.

4. Lobbying for Amendments

Industry associations are urging the government to differentiate between “skill-based” and “chance-based” games, hoping for regulatory relief.

5. Investor Impact

Venture capital firms that invested heavily in India’s gaming sector are now reassessing their strategies. Many may redirect funding to AI gaming, blockchain, or international markets.

Also Read: Real Money Gaming In India Explained

Impact on Users

1. Withdrawal of Balances

Almost every app has highlighted that user balances are safe and can be withdrawn. However, users who kept large amounts in gaming wallets face anxiety and delays.

2. Loss of Entertainment Options

Fantasy sports and cash contests were a big draw during cricket tournaments like the IPL. Millions of users who played daily will now lose access.

3. Rise of Illegal Platforms

Experts warn that the ban could push users toward unregulated black-market apps, where fraud risks are much higher.

4. Shift to Free Games and Esports

Users may move toward free-to-play titles, live-streaming competitions, or international platforms with geo-unblocking features.

Also Read: Gaming Business in India - All You Need To Know About

Economic Impact

1. Loss of Revenue & Jobs

1. India’s real-money gaming industry was valued at ₹25,000 crore+ in 2024.

2. With the ban, thousands of jobs in technology, marketing, and support may be at risk.

2. Government Revenue Hit

1. State governments earned significant GST from gaming transactions.

2. This revenue stream will shrink unless replaced with taxes on free or esports models.

3. Investor Confidence Shaken

1. Major investors like Sequoia, Tiger Global, and Accel had backed Indian gaming startups.

2. Sudden regulatory uncertainty may discourage future tech investments in India.

4. Possible Relocation of Startups

• Some firms may move their headquarters to countries with favorable gaming laws, leading to capital flight.

Also Read: Fantasy Sports vs. Gambling: What the Indian Law Says in 2025

Legal and Constitutional Challenges

1. Skill vs. Chance Debate

   1. The Supreme Court previously held that games of skill (like rummy, fantasy sports) are distinct from gambling.

   2. Industry players may challenge the new bill as unconstitutional.

2. Right to Trade and Profession

   1. Article 19(1)(g) of the Constitution guarantees freedom to carry out any trade.

   2. Companies may argue the ban is disproportionate and violates this right.

3. Federalism Issues

   1. Gambling traditionally falls under state jurisdiction.

   2. The central government’s direct intervention could face federal challenges.

Possible Future Scenarios

1. Strict Enforcement Continues

   1. Real-money gaming could vanish permanently from India.

   2. Black-market apps may proliferate unless enforcement is robust.

2. Selective Regulation

   • Government may later permit skill-based games under licenses, while banning pure gambling.

   • This would bring taxation and compliance frameworks.

3. Return of Gaming with Safeguards

   • The industry hopes for a middle ground—caps on deposits, mandatory KYC, self-exclusion tools, and counseling mechanisms to reduce addiction.

Also Read: Legal Compliance Checklist (2025): Register a Gaming Company in India

Global Comparisons

• China: Severe restrictions on online gaming, including playtime limits.

• USA: Skill-based fantasy sports allowed in many states; chance-based betting requires licenses.

• UK: Strict licensing and responsible gaming regulations allow betting but with oversight.

• Singapore & UAE: Outright bans on betting-related gaming apps.

India’s new law aligns more with restrictive regimes like Singapore than with regulated markets like the US or UK.

What Should Players Do Now?

1. Withdraw Balances Immediately – Ensure no funds are left in suspended apps.

2. Avoid Illegal Apps – Unlicensed platforms may scam users.

3. Explore Free Games – Many apps are pivoting to free play with rewards or ad models.

4. Stay Updated – Follow news about court cases or amendments that may re-open opportunities.

Conclusion

The suspension of real-money gaming apps marks a turning point in India’s digital economy. What was once a multi-billion-rupee industry, backed by investors and beloved by users, is now struggling for survival under the weight of the Online Gaming Bill, 2025.

While the government cites addiction, financial harm, and money laundering as reasons, critics argue that a blanket ban punishes skill-based startups and stifles innovation. The coming months will be crucial as the industry lobbies for amendments and possibly takes the fight to court.

For now, one thing is clear: popular apps like Dream11, MPL, and Zupee are suspending real-money gaming, reshaping the way Indians interact with online entertainment.

The future will depend on whether India chooses regulation over prohibition.