Online Gaming Bill: Can blanket ban hit gaming ad rev hard?

The Union Cabinet’s approval of the Online Gaming Bill is being widely seen as a crackdown on betting and fraudulent practices. But for India’s fast-growing advertising economy, the implications cut much deeper. By criminalising real-money gaming and its promotion, while carving out exemptions for eSports and casual gaming, the Bill could redraw one of the biggest sources of AdEx growth in recent years.

From regulation to redefinition

At its core, the Bill defines an ‘online money game’ as any digital game where users pay fees, deposit money, or stake convertible assets like tokens or credits with the expectation of monetary returns regardless of whether the game is based on skill, chance, or both. This expansive framing overrides earlier judicial precedents that had protected fantasy sports, rummy, or poker under the “skill-based” umbrella.

Tanmay Banthia, Partner at TARAksh Lawyers and Consultants, says, “The Bill meticulously defines a 'money-based gaming transaction' under Section 2(g) as an 'online money game,' encompassing any online game where users pay fees, deposit money, or stake convertible assets like credits or tokens with the expectation of monetary or equivalent returns, irrespective of whether the game hinges on skill, chance, or a blend of both, while explicitly excluding e-sports. This broad definition aims to capture the diverse mechanisms through which monetary stakes are introduced, providing a robust legal foundation for enforcement.”

Advertising at Stake

For advertisers, the immediate disruption lies in marketing. 

Real-money gaming (RMG) and fantasy platforms have emerged as some of the country’s most aggressive spenders with annual marketing budgets crossing Rs 10,000 crore as per sources, rivalling FMCG and consumer tech giants. Their campaigns dominate IPL seasons, OTT screens, and digital platforms, often pushing ad rates higher for other categories.

By banning advertisements for money-based games, the Bill effectively removes one of the biggest engines of growth in India’s AdEx. For agencies and broadcasters, this represents a sudden vacuum: a sector that fuelled user acquisition spends at breakneck pace may no longer be a viable revenue stream.

As per PwC India estimates, the Indian gaming industry is valued at over Rs 33,000 crore, with RMG and fantasy sports accounting for nearly 85% of that pie and operators in the space are also huge spenders in terms of promotions and advertisements. 

While 2024’s ad spend data isn’t in yet, the latest numbers highlight the sector’s ad-first trajectory.

As per the Pitch Madison Advertising Report 2025, Dream11 spent approximately ₹1200 - 1400 crore on advertising in 2024, which is a jump from the ₹700 - 800 crore that was spent by the company in 2023.

According to a 2023 Entrackr report, Dream11 alone spent Rs 2,158 crore on advertising, 41.5% of total ad spends among leading companies  while accounting for 42.2% of industry revenue at ₹3,841 crore. Its promotional costs rose 72.8% in a single year, outpacing its revenue growth of 50.4%. Gameskraft and Games24x7 followed, spending ₹1,336 crore on ads against revenues of ₹2,112 crore and ₹1,546 crore, respectively. MPL and A23 exemplified the industry’s ad-first approach, with ad spends of ₹700 crore and ₹550 crore, nearly equalling or exceeding their incomes.

The report further shares how new platforms like Howzat, MyTeam11, and Fantasy Akhada have collectively spent ₹178.6 crore on user acquisition, more than their combined topline. Even mid-sized players like WinZo and Gameberry spent almost as much on advertising as their revenues.

Yet, these headline spends tell only half the story.

These figures reflect only the formal spends of the larger, more visible players. Parallel to them, a sizeable unorganised betting ecosystem operates in India, with brands like XBet, DafaBet, Fairplay, Parimatch, and Betway collectively estimated to spend upwards of ₹3,000 crore on OOH and digital advertising.

Industry sources point out that many of these platforms transact partly in cash payments, often paying nearly 2x the prevailing ad rates to secure prime space in print publications and digital platforms, lending themselves credibility through visibility. While such spends may not show up in official AdEx reports, they substantially inflate India’s advertising economy at an informal level.

The Bill’s blanket prohibition of money-based gaming ads therefore impacts not just the formalised operators but also this grey-market spending. While curbing betting promotions is consistent with legal and ethical safeguards, the flip side is that a significant chunk of annual AdEx could disappear if regulated operators who currently contribute the bulk of legitimate, accountable spends are also forced out of the advertising ecosystem. 

Legal precedents overturned?

For years, Indian courts had drawn a line between games of skill and chance. Rummy, poker, and fantasy sports were judicially recognised as skill-based games and legally permissible, even with monetary stakes. The Bill removes that safety net.

Banthia warns, “The Bill criminalises all ‘online money games’, negating past precedents and directly invoking Section 5 (prohibition of online money games) and Section 6 (prohibition of advertisements). Sponsorships, celebrity endorsements, and massive campaigns that were earlier permissible would now attract penalties, fines up to ₹1 crore, and even imprisonment of key executives under Section 11 (offence by companies).”

Double whammy of tax and compliance

The Bill adds to an already heavy compliance burden. The sector is grappling with a 30% winnings tax, potential GST hikes to 40% (up from 28%), and aggressive enforcement against offshore operators.

Ankit Sahni, Partner at Ajay Sahni & Associates, notes, “The draft Bill declares that advertising or promotion of money-game services will itself be a criminal offence. This places media companies and agencies at direct legal risk, not just gaming platforms.”

MeitY has already shut down 1,400 illicit gaming sites, enforced taxation on offshore platforms, and imposed strict compliance. Together with ad bans, these moves heighten risks of layoffs, investor pullouts, and a slowdown in digital ad growth.

What’s at stake for India’s digital economy

Despite taxation and compliance headwinds, fantasy and RMG operators have so far dominated consumer attention through massive ad spends, building a multibillion-rupee juggernaut that rivals the biggest consumer businesses.

Banthia cautions, “The Bill’s failure to distinguish between skill and chance games disregards legal precedents in India that permit skill-based games (for instance, rummy, fantasy sports). This blanket approach risks penalising a legitimate sector, triggering legal challenges and stifling innovation. For major platforms like My11Circle and Dream11, which rely on judicial recognition of fantasy sports as skill-based, the Bill dismantles the very legal foundation of their business models.”

Sahni adds, “A company whose business is prohibited will, in all effect, be prevented from advertising it as such. The draft Bill declares that advertising, promotion, or facilitation of money-game services will be a criminal offence, with penalties of up to 2 years’ imprisonment and ₹50 lakh fine.”

Policy signal: A line in the sand

Despite the industry’s growth, investments, and big-tech backing, the Cabinet’s stance is clear: money-based gaming transactions must be halted. The government views them less as entertainment and more as gambling, with social costs that outweigh economic gains.

For policymakers, credibility rests on separating eSports and casual gaming from high-stakes money play. The message is unambiguous: gaming can thrive as part of India’s digital economy, but not as a parallel betting ecosystem.