Several major online gaming companies in India have reported a complete shutdown of their operations following the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which bans real-money games, associated banking services, and advertisements. On Friday, September 26, 2025, these companies informed the Supreme Court of India that their businesses have come to a halt due to the new law.
The legislation has immediately affected millions of users and disrupted the operations of platforms like Dream11, My11Circle, and Mobile Premier League (MPL). MPL, for example, announced plans to lay off nearly 60% of its Indian workforce, translating to around 300 employees, citing the ban as the primary cause of operational difficulties.
In response to the law, multiple gaming companies have filed petitions challenging its constitutionality. The Supreme Court has consolidated these cases, transferring all related petitions from various High Courts for a unified hearing. Petitioners argue that the legislation infringes upon their right to conduct business and may have significant economic consequences.
The Indian government has defended the ban, emphasizing its goal of protecting consumers from the financial and psychological risks associated with real-money gaming. Officials highlighted that the law aims to curb issues such as gambling addiction, underage participation, and financial fraud while promoting responsible gaming practices.
Industry analysts estimate that the real-money gaming sector, valued at approximately $3.6 billion, may face substantial financial losses. Investors are monitoring the situation closely, with concerns that users might migrate to unregulated platforms, potentially undermining consumer protection objectives.
As the Supreme Court deliberates on the petitions challenging the Promotion and Regulation of Online Gaming Act, 2025, the future of India’s online gaming industry remains uncertain. The court’s ruling will set a significant precedent for the regulation of online gaming in India, with lasting implications for both businesses and consumers.
