Real Money Gaming collapse: ₹3,720 crore vanishes, 6,500 jobs lost since ban
Smaller-scale gaming firms bore the brunt hardest, contributing nearly 5,000 job losses, though the precise tally remains elusive as industry federations continue compiling data.
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Nearly 30 days after India’s government passed one of the most sweeping regulatory overhauls in its digital economy’s history, the real money gaming (RMG) industry finds itself in shambles. Following the passage of The Promotion and Regulation of Online Gaming Act, 2025, player deposits worth over ₹3,720 crore have evaporated, while tax revenue losses tally up to over ₹1,041 crore.
The fallout is vast—more than 6,500 jobs have already vanished in last 26 days, devastating not only the corporate landscape but also individual livelihoods across multiple states.
The demise of India’s RMG sector unfolded at a breakneck pace, leaving industry insiders and employees in shock. On August 19, the Union Cabinet quietly approved the draft bill, barely giving the industry time to digest the ramifications. By the evening of August 20, the Lok Sabha had passed the bill, and the Rajya Sabha followed suit the next day, with minimal debate or resistance. In less than 48 hours, what once represented India’s promise of digital entrepreneurship became an enforced relic of the past.
This abrupt political maneuver resembled a thriller, with decisions made in secrecy and without public consultation. Industry players were blindsided, left scrambling to comprehend the devastating consequences of such a rapid policy shift.
The government is yet to issue an official notification on the enforcement of PROGA, 2025. On the other hand, Supreme Court is all set to hear the petitions filed by real money gaming companies challenging the law.
The Human Toll: Lives Shattered
Thousands of employees suddenly are now rendered jobless. Games24x7, the parent company of popular platform My11Circle, led the early wave of layoffs, impacting around 400 employees. Galactus Funware Technology Pvt. Ltd., which operates MPL, executed one of the largest reductions, shedding close to 600–700 employees.
Meanwhile, Probo—a leading opinion trading platform—shuttered operations, forcing co-founders Sachin Gupta and Ashish Garg to bid an emotional farewell. Over 100 employees were laid off. Hyderabad-based Head Digital Works, parent of the online gaming platform A23, laid off nearly 500 workers, while Zupee let go of 170 employees, about 30% of its total workforce. Kavin Bharti Mittal’s Rush was not spared either, as the entire workforce of over 100 employees was dismissed.
Smaller-scale gaming firms bore the brunt hardest, contributing nearly 5,000 job losses, though the precise tally remains elusive as industry federations continue compiling data.
For Sheetal Vyas, formerly in communications and policy, the ban was deeply personal. “I was living in Delhi, striving for a bright future,” she lamented. “But with the industry crumbling around me, I am forced to return to Rajasthan to live with my family. I had dreams of contributing meaningfully to India’s digital economy, but now those dreams are slipping away.”
Driven by despair, Sheetal has resolved to pursue further studies abroad, intending to permanently settle outside India. “The uncertainty in this country has left many of us with no choice but to leave,” she said, her voice heavy with heartbreak.
Exodus of Talent and Expertise
The pain isn’t confined to individual stories. Across the board, highly skilled developers, marketers, strategic policy experts, and support staff are seeking opportunities abroad. Industry observers warn of a growing brain drain, a chilling effect that could erode India’s position as a global tech hub.
A tech industry analyst commented, “The talent pool India developed over the past decade was top-notch. But when policies shift overnight without a safety net, people have no choice but to look for greener pastures.”
Vikram Kumar, a professional poker player, summed it up bluntly: “Countries like Vietnam, Sri Lanka, South Korea, and the Philippines are welcoming professional poker players with open arms to play tournaments. India doesn’t seem to have a future for players like me anymore.”
Now, Vikram is pivoting to offline poker tournaments in Goa, trying to salvage his passion amidst the chaos. “It’s heartbreaking, but there’s no other option,” he admitted.
Dilip Shinde’s story is equally haunting. An employee in the tech division of one of the now-defunct gaming firms, he had left his previous job three months ago hoping to stabilize life for his family. “My home and education loans were mounting, and I was desperate,” he said. “I thought this new role was my chance for stability, but now, I’m jobless, with no prospects.”
The weight of responsibility crushes him daily, as he struggles to support his family in the face of an unpredictable future.
Industry Experts Predict a Long-Term Chill
Experts fear the government’s abrupt action sends a dangerous message to startups and innovators. “Innovation is welcome only when it conforms to narrow policy interpretations,” said an industry insider. The broader implication? International investors and tech entrepreneurs might think twice before investing in India’s digital economy.
“The impact will be felt for years to come,” predicted another analyst. “When you shut down an entire ecosystem overnight, it’s not just companies that fold. You extinguish the entrepreneurial spirit and discourage future risk-taking.”
Supporters of the ban argue it was necessary to curb gambling addiction, money laundering, and unregulated operations that lacked consumer protection. Critics counter that the law was hastily implemented, lacking a balanced framework to allow legitimate businesses to operate while safeguarding vulnerable users.
Industry veterans argue that a more phased approach—with proper consultation and adequate time to transition—would have been far less destructive. Instead, the government’s decision seems to have sent a sweeping “off-limits” signal to the burgeoning sector.
As the dust begins to settle, the industry grapples with the reality that the government’s move has not just regulated—it has effectively erased India’s RMG ecosystem. Professionals like Sheetal Vyas, Vikram Kumar, and Dilip Shinde represent a broader phenomenon: the unwilling exodus of talent, dreams, and ambition.
“It was about building a future,” Sheetal reflected. “But now, that future belongs somewhere else.”
