Gaming
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Mass withdrawals hit RMG platforms, industry braces for legal battle
Industry executives confirm tech teams are on standby for shutdowns once notified. With employees anxious and revenues at risk, gaming federations are already consulting legal experts for a challenge in courts when the law is enacted.
The passage of the bill has unified industry voices in what is shaping up to be a high-stakes legal battle.
The passage of the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha has sent shockwaves through India’s real money gaming (RMG) industry. Within hours of the bill being cleared, several platforms reported a surge in user withdrawals, reflecting a loss of trust and uncertainty over the future of skill-based money gaming in India. At the same time, industry leaders and associations are preparing to challenge the legislation in court once it officially becomes law.
A senior executive from a leading RMG company confirmed that withdrawals have picked up sharply. “We have seen withdrawals in funds from hundreds of users. We are continuing to operate until there is a final clarity. The tech team has been told to be prepared for a pause when there is a gazetted announcement from the government,” the official told Storyboard18.
This uncertainty has rattled not only users but also employees across the industry. “We are a law-abiding company and will adhere to laws once implemented. This has affected morale of employees but it is part and parcel of any industry operating in an uncertain regulatory environment,” the executive added.
Platforms, in the meantime, are reassuring users about the safety of their deposits. Navikiran Singh, Founder of Baazi Games, took to a private Facebook group to reassure his community. “Your funds are safe at Baazi Games and you can withdraw it whenever you please,” he wrote. Singh, however, admitted that the passage of the bill marked one of the lowest points in his entrepreneurial journey.
“Extremely sad to see the bill being passed and the way it was passed. I spent 12 years trying to grow this game in India and establish it as a sport. I guess I failed in my mission. This is the first time when we all need to get together, players, operators, associations, employees and fight with whatever means we have. It’s important to make sure we are heard, we need to write letters to the PMO and file in the court. We will be doing our bit as well,” Singh said.
The passage of the bill has unified industry voices in what is shaping up to be a high-stakes legal battle. A top executive from a gaming federation confirmed that legal consultations are underway. “We will fight it out in court when it becomes a law. We cannot challenge the government when it is in the form of a Bill,” the executive explained.
For many operators, this is not just about survival but also about safeguarding the future of skill-based gaming in India. Several stakeholders argue that the legislation fails to distinguish between games of skill and games of chance — a line that has been upheld in multiple Supreme Court and High Court rulings.
Civil society groups have also expressed concern over the government’s prohibition-heavy approach. Abhay Raj Mishra, President & National Convenor of PRAHAR (Public Response Against Helplessness and Action for Addressal), warned that blanket bans rarely work.
“Government needs to reconsider and take a more calibrated stance, as prohibition has never worked. This bill will bring back the satta market with a vengeance. Blanket bans tend to drive users to unregulated platforms rather than protecting them,” Mishra said.
He cited PRAHAR’s July survey of 2,500 gamers in Telangana, a state where RMG has been banned for eight years. The findings were stark: despite the ban, players still accessed money gaming through VPNs, side-loaded apps, Telegram groups, and alternative payment workarounds. More than 94% of respondents said they wanted regulated, legal options.
“The second big concern is that this bill is anti–Indian entrepreneurship. It unilaterally promotes foreign gaming companies. The e-sports and casual gaming sectors that the bill promotes are dominated by international giants, largely Chinese and US gaming companies. This is a U-turn, as at one point in time India had banned PUBG. Now the same players will have parliamentary legitimacy to operate freely in India, with potential compromise of the sovereignty and integrity of the nation,” Mishra added.
For now, companies are recalibrating business models, restructuring workforces, and preparing for worst-case scenarios. Singh of Baazi Games signaled that business restructuring was already underway, though he struck a defiant note: “These are tough times and I hope we can fight it out together, one last time.”
Analysts believe the immediate fallout of the bill will be sharp revenue losses, layoffs across gaming firms, and an uptick in unregulated offshore betting platforms filling the vacuum. Industry insiders caution that driving players away from licensed and taxed operators will only fuel the very black-market activity the government hopes to curb.
As users continue withdrawing balances in anticipation of a shutdown, and as companies regroup for a court fight, the next chapter in India’s gaming regulation battle looks set to play out not in gaming arenas, but in the country’s courts.
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