Major Indian gaming platforms including Dream11 have halted real-money gaming operations after parliament passed a sweeping ban on Thursday.

The prohibition targets online money-based games, related advertising, and payment processing, jeopardizing an industry previously projected to reach $3.6 billion by 2029.

Prime Minister Narendra Modi’s government justified the ban by citing financial risks to users and potential psychological harm.

The decision has triggered immediate market repercussions, with Nazara Technologies—which holds a 46% stake in PokerBaazi operator Moonshine Technologies—seeing its shares fall approximately 17% over three sessions.

Gaming companies are reportedly consulting legal experts to challenge the ban in India’s Supreme Court, arguing the measure lacked industry consultation and wrongly categorizes skill-based games like poker alongside chance-based gambling.

The ban affects numerous startups backed by major investors including Tiger Global and Peak XV Partners.

The move represents a significant setback for India’s gaming sector, which had emerged as one of the world’s fastest-growing markets.

Industry representatives warn the prohibition could eliminate thousands of jobs and deter investment in the broader technology ecosystem.

Legal challenges are expected to focus on distinguishing skill-based games from gambling, a distinction previously recognized by several Indian courts.

The outcome will determine whether specialized regulations might replace the blanket ban, potentially preserving segments of the industry while addressing government concerns about user protection.

Source: Reuters.