Real money gaming market sees ₹7,000 cr write-off, 7k jobs gone as PROGA remains unnotified

In barely 90 days since Parliament passed the Promotion and Regulation of Online Gaming Act (PROGA), India’s real-money gaming industry has absorbed one of its biggest financial shocks, with listed companies writing off over ₹7,000 crore in investments, total revenue losses crossing ₹10,000 crore, and the exchequer taking a combined hit of nearly ₹5,600 crore in GST, TDS and income tax.

The sector has simultaneously witnessed the disappearance of more than 7,000 jobs, even though the government has not yet notified the law—triggering a collapse driven almost entirely by fear of enforcement rather than formal regulation.

Listed gaming firms alone have written off investments valued at more than ₹7,000 crore, while the broader sector has shed over 7,000 jobs in less than a month. Industry experts estimate revenue losses of ₹10,000 crore, a ₹3,600-crore GST shortfall, and an additional ₹2,000-crore hit to the government’s TDS and income-tax collections. Since September 22, GST on online money gaming is being applied at 40%, further deepening the economic damage.

Government passed the bill in 96 hours, but hasn’t notified it for 90 days

Jay Sayta, technology and gaming lawyer, questioned the prolonged silence from policymakers. “It is surprising that the government, which passed the legislation with alacrity—completing the entire process from cabinet approval to presidential assent in less than 96 hours—is now unable to issue a notification appointing a date to bring the law formally into force for the last three months,” he said.

Sayta added that until PROGA is officially notified, the law’s penalties and restrictions cannot legally be imposed. “Banks and financial institutions are also not barred from offering their services until the law is brought into force, although once the notification is issued, they would immediately have to cease all operations.”

The sector’s financial damage is now being reflected in quarterly earnings across global and domestic companies.

The financial impact of this uncertainty is now clearly visible in quarterly earnings across both global and Indian companies. Flutter Entertainment reported a $556 million impairment after its India unit, Junglee Games, halted all cash-based rummy operations.

The write-down contributed to a net loss of $789 million for the September quarter, sharply higher than the $114 million loss a year earlier. Flutter CEO Peter Jackson wrote to shareholders that the regulatory shock in India was “sudden and unexpected,” and said the company would limit Junglee to free-to-play offerings while reassessing its long-term plans for the Indian market.

Nazara Technologies also disclosed significant damage, writing down ₹914.7 crore on its investment in Moonshine Technologies, the parent of PokerBaazi. The company reduced the carrying value of Moonshine to ₹96.53 crore after the business experienced a complete cessation of revenue-generating activity, explicitly attributing the collapse to the prohibitions introduced under the Online Gaming Act.

Canadian investment firm Clairvest reported an unrealized loss of ₹760 crore on its exposure to Head Digital Works (HDW), wiping out the asset’s value entirely. CEO Ken Rotman described the Indian regulatory overhaul as a material adverse development and said the shock had prompted the firm to refocus its strategy on North America after several international setbacks.

Delta Corp, which had earlier exited its majority stake in Adda52 parent Deltatech, wrote down the remaining 49% stake in the business to zero and also marked down the value of its investments in HDW and OpenPlay Technologies, resulting in a combined fair-value erosion of ₹378.3 crore.

Fintech players that previously benefited from gaming-linked transactions are also reporting significant setbacks. Paytm’s net profit fell 98% after the company booked an impairment of ₹190 crore on a loan extended to First Games Technology. Mobikwik experienced an eightfold increase in losses, reaching ₹28.6 crore, alongside a 7% year-on-year decline in operating revenue as transaction volumes linked to RMG activity dried up. UPI transactions in the gaming category fell sharply as well, dropping from 351 million in July to 270 million in August, according to data from NPCI.

The industry-wide retreat has reshaped India’s gaming landscape in a matter of weeks. Hike shut down its RMG app Rush. Largest real money gaming platforms—including Dream11, MPL, Zupee, WinZO and Gameskraft—halted all cash-gaming formats. More than 7,000 jobs have vanished across technology, product, operations and customer support functions, with layoffs concentrated in states such as Karnataka, Telangana and Haryana.

Industry executives say the collapse began at an extraordinary pace in August. The Union Cabinet approved the draft bill on August 19, the Lok Sabha passed it on August 20 and the Rajya Sabha cleared it on August 21 with minimal discussion or resistance.

Within 48 hours, a sector that had been one of India’s fastest-growing pillars of consumer technology found itself effectively dismantled, even though the law remains formally unnotified nearly 90 days later. As companies continue to exit, downsize or write off entire business lines, the industry remains in limbo over whether the government will introduce clarifications, exemptions or transtional timelines when the Act is eventually brought into force.