Major Real Money Gaming Platforms Shut Operations in India Amid Regulatory Crackdown

India’s online real-money gaming sector—once buzzing with activity and sky-high promises—is suddenly looking shaky. In the past few weeks, some of the biggest names in the business—Gameskraft, My11Circle (part of Games24x7), Mobile Premier League (MPL), Probo, and Zupee—have quietly (or not so quietly) hit the brakes on their real-money gaming operations. For an industry that was supposed to be the next big digital gold rush, this is nothing short of dramatic.

So, what exactly happened?

Tax Troubles at the Heart of the Storm

The flashpoint here is India’s Goods and Services Tax (GST). Last year, the government announced a hefty 28% GST on the full face value of online gaming, casinos, and betting transactions. This means companies must pay tax not just on their earnings or commission, but on the total amount users put in. For a business where margins are already slim and customer acquisition costs are high, this move has been like pulling the rug out from under their feet.

For context, before the new rule, gaming firms typically paid GST only on their platform fees. That was manageable. But with the revised policy, every ₹100 a user spends is taxed upfront, making it nearly impossible for companies to run a sustainable business.

“Overnight, the economics just stopped making sense,” said one gaming founder on the condition of anonymity. “It’s like being told to run a marathon with a 50-kilo backpack. Eventually, you just give up.”

Big Names Bow Out

Let’s look at who’s stepped aside:

• Gameskraft – Once a poster child of India’s gaming ecosystem, Gameskraft had to shut its popular platforms like RummyCulture after facing tax notices running into thousands of crores.
• My11Circle (Games24x7) – Known for cricket fantasy leagues and endorsements from star cricketers, the company scaled down real-money contests, shifting focus toward casual games.
• MPL – Backed by big investors like Sequoia and Tiger Global, MPL’s retreat from real-money gaming marks a massive pivot. They’ve reportedly shifted focus to skill-based and non-RMG offerings.
• Probo – This opinion-trading platform, which tried to create a new category, is also rolling back its RMG exposure.
• Zupee – The skill-gaming startup that offered ludo for cash prizes has also pressed pause.

Each of these exits sends a message: the current regulatory environment isn’t just tough—it’s nearly unworkable.

A Reality Check for the Industry

Now, here’s the thing. The online gaming space was one of India’s most exciting digital frontiers. Between 2018 and 2022, it attracted billions in funding, grew user bases in the tens of millions, and was even being touted as a job creator for tech and creative professionals.

But if we’re honest, cracks were already showing. Many companies relied heavily on bonuses, cashback, and aggressive marketing to acquire users. Profitability was always “coming next year.” The GST hike just fast-tracked the reckoning.

In a way, the government’s policy feels like a blunt instrument. On one hand, regulators wanted to draw a clear line between gambling and skill gaming. On the other, they applied the same tax treatment across the board. Critics say this is punishing legitimate skill-based operators, lumping them in with casinos and betting outfits.

What’s Next?

So, where does this leave India’s real-money gaming sector?

For now, survival seems to be the name of the game. Smaller companies that don’t have deep pockets are already folding. Bigger ones are pivoting to casual or “free-to-play” gaming, hoping to retain their user base while figuring out new monetization models. International expansion is also on the cards—some firms are looking at markets in Southeast Asia and Africa to offset losses in India.

Investors, once gung-ho about Indian gaming, are treading carefully. As one VC bluntly put it: “Until there’s clarity on taxes and regulations, this space is radioactive.”

That said, gaming in India isn’t going away. The demand is massive, and users clearly enjoy playing skill-based games. But whether companies can build viable business models under the current tax regime is the million-dollar (or rather, billion-dollar) question.

A Crossroads Moment

If there’s one takeaway from this shake-up, it’s that India’s gaming industry is at a crossroads. It could either shrink into a shadow of its former self, with only a handful of global giants daring to stay, or it could evolve into something more innovative—like hybrid gaming models, esports, or blockchain-driven platforms.

For now, though, the mood in the industry is cautious, even grim. The big names pulling back have set the tone: if the rules don’t change, expect more shutdowns. And if that happens, India might just lose out on a digital sector that had all the makings of a global success story.

👉 In short: What was once a booming sector now feels like a house of cards. Unless policymakers take a more nuanced approach, the real-money gaming dream in India may remain just that—a dream.