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The recent passage of the Promotion and Regulation of Online Gaming Bill, 2025, in India, which effectively bans all money-based online games, marks a pivotal moment in the nation’s advertising and sports sponsorship ecosystem. For over a decade, real-money gaming and fantasy sports platforms had quietly yet powerfully reshaped this landscape, transforming the way brands engaged with consumers and how sports, particularly cricket, were funded and promoted. The rise of platforms like Dream11, MPL, and My11Circle, initially modest in their scope, quickly evolved into a multi-crore playground for advertisers. This transformation was characterized by flashy IPL campaigns, celebrity endorsements, and the creation of a new economic ecosystem where brands, broadcasters, and even grassroots leagues thrived. The new legislation, however, has abruptly halted this growth trajectory, leaving advertisers, sports bodies, and content creators facing empty budgets and uncertain strategic paths. The impact is profound and far-reaching, extending beyond mere financial losses to affect the very structure of sports development and digital content creation in the country. The Indian online gaming market, valued at $3.7 billion, with the real-money segment constituting a significant 86% of its revenues, highlights the scale of the disruption. The fantasy sports platforms, as some of the largest spenders in sports advertising, played a critical role in propelling the Indian sports ad market to a staggering Rs 16,600 crore in 2024, with cricket at its core. Dream11 alone reportedly held Rs 350 crore in cricket sponsorship deals, while My11Circle commanded IPL fantasy rights worth Rs 625 crore over five years. The overnight disruption caused by the new legislation is estimated to impact over Rs 4,500 crore annually in advertising revenue, creating a void for broadcasters, ad agencies, and influencers alike. Plans are being frozen, campaigns delayed, and revenue streams blocked, leading to a sense of uncertainty and re-evaluation within the industry.
Vikram Jeet Singh, Partner at BTG Advaya, aptly describes the situation, emphasizing that the implications extend beyond mere financial considerations. A multitude of major sporting events and teams, including those in cricket, are currently sponsored by companies whose businesses may now fall under the purview of ‘online money games’. These include fantasy draft games, as well as games like rummy and poker, which are now deemed illegal. Furthermore, the promotion and advertising of such games may attract penalties. Broadcasters are restricted from showing ads during sporting events that promote online money games, and online content curators like YouTube are barred from showing these ads as well. The deeper implications lie in the fact that fantasy sports sponsorships had become an engine not just for advertising, but also for sports development itself. Smaller leagues, emerging sports, and grassroots talent often relied on this indirect support, and the threat to these lifelines could have long-term consequences for India’s sporting pipeline. Digital content creators and marketers who catered to gaming audiences are also feeling the pinch, as reduced budgets ripple across influencer collaborations, content production, and esports events linked to real-money platforms. Singh further points out that for individual players across sports, sponsorships or appearance fees paid by online money gaming companies will dry up as a result of the ban. Moreover, the consumer laws already in place in India make endorsers and influencers legally liable for their endorsements; endorsing an online money game may now attract additional penal consequences.
However, amidst this upheaval, new opportunities are emerging. E-sports and social gaming remain untouched by the ban, presenting a potential refuge for advertisers and marketers. The country’s e-sports market is projected to reach Rs 1,100 crore by 2025, growing at an impressive rate of 46% annually, driven by mobile gaming and digital viewership. Singh suggests that these new avenues could gradually fill the void left by real-money platforms. The space vacated by online money games may be filled by e-sports, social games (which do not involve money stakes), and console/PC video games. India differs from the rest of the world in that mobile games dominate the market. Now, with a large chunk of such games possibly going away, users may turn to the more ‘mainstream’ games that are played on PCs or consoles such as PlayStation and Xbox. These games may target the same or similar market demographics, and may make up (to some extent) for the revenue loss occasioned due to the ban on online money games. The government is also offering support, positioning e-sports as both socially safer and economically promising, with advertisers already testing these waters, scouting for ways to channel marketing budgets into the next wave of digital entertainment.
The impact of the bill extends beyond advertising, as banks, payment gateways, and digital wallets are barred from processing transactions for real-money gaming, cutting off essential revenue streams. Platforms, marketers, and media agencies now navigate a more complex financial landscape, adding layers of operational and strategic challenges. For India’s advertising and sports marketing ecosystem, this ban represents a seismic shift, with immediate consequences such as shrinking revenues, job losses, and sponsors withdrawing support. However, disruption often sparks innovation. Singh notes that the new law provides for the recognition and promotion of e-sports, which are organized competitive events between individuals or teams, conducted in multiplayer formats governed by predefined rules, and where bets/wagers are not placed. E-sports may be encouraged by establishing training academies, providing incentive schemes, and integrating them within broader sporting initiatives. These events may occupy the space created by online money games, particularly if relevant incentives are provided. The industry is therefore at a crossroads, facing immediate challenges but also presented with opportunities to adapt, innovate, and explore new avenues for growth in the evolving digital landscape.
Source: Money-based gaming ban rocks advertising, sports sponsorships: What's at stake?