Breaking: Flutter takes $556 million hit as Online Gaming Act forces Junglee shutdown

Flutter Entertainment, the world’s largest online betting and gaming group, has taken a non-cash impairment charge of $556 million following India’s blanket ban on real-money gaming under the Promotion and Regulation of Online Gaming Act, 2025. The UK- and US-listed company said the new law forced its subsidiary Junglee Games to immediately cease all paid operations in India, including popular skill-based titles such as online rummy.

The impairment, disclosed in Flutter’s Q3 2025 earnings, was the single largest drag on the group’s quarterly performance, pushing it to a net loss of $789 million for the three months ended September 30, 2025—up sharply from $114 million in the same quarter last year.

“We are extremely disappointed with the sudden and unexpected change to the regulatory landscape in India,” said Flutter CEO Peter Jackson in a letter to shareholders. “Flutter has invested significantly in India over the last number of years, responsibly delivering innovative skill-based games to Indian customers. Junglee will now only offer free-to-play gaming content as we assess our medium-term options in that market.”

The Promotion and Regulation of Online Gaming Act, 2025 received assent from the President of India in August, immediately outlawing real-money games such as rummy and fantasy contests, which had previously operated under the “skill-based gaming” category in India. Junglee Games—one of the country’s leading rummy operators—was among several companies forced to halt operations overnight.

The legislative change, Flutter said, necessitated a complete shutdown of all real-money gaming in India indefinitely, resulting in the write-down of Junglee’s goodwill and intangible assets. The impairment comprised $517 million in goodwill, $32 million in acquired and developed intangibles, and $7 million in other long-lived assets.

While the impairment does not involve a cash outflow, the company said the loss will materially affect its regional revenue and earnings trajectory in the coming years.

According to Flutter’s guidance, the Indian regulatory change will lead to a revenue hit of $70 million and EBITDA loss of $30 million in 2025 alone. The company expects the impact to deepen in the subsequent years, with revenue losses of $250 million and EBITDA decline of $90 million projected for 2026. By 2027, the fallout could reach $310 million in lost revenue and $130 million in EBITDA.

The impairment and cessation of Indian operations were among the primary reasons Flutter’s International division, which includes Asia-Pacific markets, reported slower organic growth despite strong results in Europe and Latin America. The group’s iGaming revenue from the region fell 12% year-on-year, primarily due to the halt in Indian real-money operations.

Flutter had entered India’s real-money gaming space in 2021 by acquiring a 95% stake in Junglee Games, positioning itself to benefit from the country’s growing base of digital gamers. However, India’s evolving stance on online gaming regulation has turned sharply restrictive in 2025.

The government’s latest legislation consolidated oversight under the new Act, bringing both skill-based and chance-based games under a single regulatory definition and effectively banning any game involving monetary stakes. The law was introduced after multiple state-level restrictions and court rulings created ambiguity over the legality of rummy and other online games for cash.

The regulatory shock in India adds to the challenges facing Flutter’s international portfolio at a time when the company is expanding aggressively in the US market through its FanDuel brand. The impairment also weighed on the group’s balance sheet—its net loss margin widened to 20.8%, and free cash flow plunged 78% year-on-year during the quarter.

Still, Flutter maintained that the charge would not affect its adjusted EBITDA or liquidity position, describing it as an exceptional, non-recurring item.

“The cessation of real-money gaming in India was outside our control,” the company said in its filings. “While we remain committed to compliance and responsible gaming, we will continue to assess our medium-term opportunities in the market.”

The development underscores how India’s sudden policy shift has upended one of the world’s fastest-growing real-money gaming markets, where industry estimates pegged over 400 million online players. With Junglee’s withdrawal, Flutter joins a growing list of international firms scaling back or exiting India’s regulated and semi-regulated gaming space amid escalating compliance and taxation risks.