IT minister meets gaming companies as Gaming Act rollout sparks layoffs

Marking the start of its first operational framework under the Promotion and Regulation of Online Gaming Act, 2025, Union IT Minister Ashwini Vaishnaw held consultations with real money gaming (RMG) industry operators and key associations, setting a decisive course for its rollout. Following the bill, the government has assured clarity for esports and social gaming platforms, even as the RMG industry faces an uncertain future following the ban.

The Union minister has reportedly asked the gaming companies to ensure an orderly transition following the new Act. The meeting, which took place at Rail Bhawan, was largely aimed at bringing clarity to the rollout process and sending a clear message about the government's intention to enforce compliance and ensure smooth operations for those in the esports and social gaming space.

The discussions highlighted that while the ban on real-money gaming is aimed at protecting users, the next step will be to ensure a structured transition. The RMG players were also reportedly informed that the government will steer the sector through a calibrated transition.

However, it was also conveyed that the government is open to exploring amendments to the Online Gaming Act as the framework matures, to bring more clarity, and it was asserted that a potential carve-out for video games and esports remains under active review.

At the same time, the Union minister stated that a stringent action against offshore operators—including reinforced blocking measures and withdrawal of advertisements—is being prioritised. “The message is unambiguous—support is available, but adherence to the new rules is non-negotiable,” was the clear takeaway from the consultation, said Ananay Jain, Partner, Grant Thornton Bharat.

For smoother rollout, four nodal ministries—electronics & IT, information & broadcasting, sports, and telecom—have been designated, along with two nodal officers to oversee execution. An advisory from the department of financial services and the Reserve Bank of India (RBI) is also expected, which will provide clarity for banks and payment gateways, ensuring continuity of legitimate transactions.

"The next phase will see the release of FAQs and draft rules within three to four weeks, along with staggered activation timelines for different provisions. Industry associations have been invited to share inputs to ensure clarity on compliance requirements. The government has underscored that while transitional support will be extended, strict enforcement against non-compliance and offshore operators will move in parallel — signalling that this is the time for the domestic industry to adapt and reposition itself under the new regulatory framework," Jain.

Meanwhile, ripples have begun to surface in India's money gaming sector as companies have started shedding workforce following the ban on money games. Gaming major Mobile Premier League (MPL) has enforced the first major round of job cuts, affecting around 60% or 300 of the total 500 employees in India.

India, which accounted for 50% of MPL's revenue, was one of the key markets for the company, but now, as MPL CEO Sai Srinivas said in an internal mail, seen by Reuters, the company "would no longer be making any revenue from India in the near future”.

Other companies have followed, with another gaming major Games24*7, the operator of Rummy Circle and My11Circle, also planning similar job cuts, suggest sources. However, the company, which employs about 750 people, has not confirmed the development yet.

Nazara Technologies-backed Delhi-based startup Baazi Games (Moonshine Technology), which operates major poker platform PokerBaazi, also aims to cut its workforce, with sources pegging the number at around 200-250.

Harsh Jain-led Dream Sports, which recently announced the closure of Dream11, has assured that it will not lay off employees but has exited the ₹358-crore jersey sponsorship deal with cricketing board BCCI. The company has also shut down its merchandise platform FanCode, though claiming the decision was made before the Online Gaming Bill.