Gaming firms eye Rs 10,000-cr opportunity as RMG ban drives shift to ad-led models

India’s online gaming industry is undergoing a fundamental reset, with companies rapidly pivoting to advertising-led models after the government’s sweeping ban on real-money gaming (RMG) wiped out a key revenue stream and forced a strategic overhaul across the sector.

The industry’s turning point came on August 21, 2025, when Parliament passed the Promotion and Regulation of Online Gaming Act, outlawing online games played for money along with associated advertising and financial transactions.

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The Centre positioned the legislation as a landmark move to safeguard users from the risks of money gaming, while enabling a regulated ecosystem for non-monetised formats. PROGA continues to remain unnotified and unenforced since then.

 The immediate fallout was stark. Leading platforms including First Games (Paytm), Dream11 (Dream Sports), Mobile Premier League (MPL), RummyCircle and My11Circle (Games24x7), Junglee (Flutter), PokerBaazi (Moonshine and Nazara), WinZO, Zupee, GamesKraft and Probo suspended their real-money gaming operations.  

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With cash-driven gaming revenues drying up almost overnight, the industry has pivoted sharply towards free-to-play formats monetised through advertising, brand partnerships and data-driven engagement models. What initially appeared to be a reactive shift is now being viewed as a long-term structural transformation.  

A PwC outlook report notes that monetisation is increasingly moving away from direct user spending toward advertising, driven by changing consumer behaviour and rising price sensitivity. This shift is already reflecting in industry performance metrics. 

According to the latest FICCI-EY report, India’s online and video gaming segment recorded a 17% decline in 2025, following the late-August ban. Revenues from money gaming alone fell by 26% year-on-year, dragging down the broader segment.  

Industry estimates, including PwC analyses and market projections, peg the emerging advertising opportunity in India’s gaming sector at around ₹10,000 crore, driven by the rapid shift toward free-to-play, ad-supported formats.  

Companies are now reworking their business models to align with the new reality. Moonshine Technologies, for instance, has transitioned PokerBaazi into an ad-supported and subscription-driven platform under its wholly owned subsidiary Get Zapped Technologies Limited. While the PokerBaazi brand remains intact, revenue streams are being rebuilt around advertising and premium subscriptions.

A spokesperson for Moonshine Technologies said the company is actively exploring partnerships with brands across lifestyle, automobile and other consumer-facing categories. “The focus is on collaborations that feel authentic and add value to the player experience,” the spokesperson said, adding that it is still early to comment on ad revenue projections.

Dream Sports-owned Dream11, one of the largest players in the ecosystem, is already witnessing strong advertiser traction. Vaibhav Kokal, Chief Business Officer at Dream11, said the platform has onboarded more than 30 advertisers ahead of the upcoming cricket season and is scaling aggressively during the IPL.

“These partners span diverse sectors including fashion and lifestyle, consumer packaged goods, BFSI, OEMs, quick commerce and tech/AI brands,” Kokal said. “We saw strong momentum during the 2025 Asia Cup, and that interest has only grown. Dream11 is capturing a larger share of digital and second-screen advertising as brands shift spends toward high-intent platforms.”

Industry executives say the opportunity is not just about ad volumes, but also about how brands integrate into gaming environments. Kashyap Reddy, Co-founder and CEO of Metasports Interactive, said the nature of brand participation is evolving rapidly. Metasports Interactive have always been dominantly prominent in free to play games. 

The post-ban reset is also accelerating the formalisation of gaming as a mainstream digital advertising channel, with industry estimates pegging the opportunity at nearly ₹10,000 crore over the next few years. As platforms transition to free-to-play formats, they are leveraging large user bases, first-party data and high engagement levels to offer brands more targeted and measurable outcomes. 

Unlike traditional digital media, gaming enables deeper immersion through rewarded videos, native integrations and contextual placements, driving stronger recall and engagement. With advertisers increasingly shifting spends toward high-intent environments especially during marquee events like the IPLthe gaming sector is fast emerging as a significant new pillar within India’s digital advertising ecosystem.  

“The real shift is not how much brands will spend, but how they show up inside games,” Reddy said. “There is a move toward meaningful in-game presence rather than traditional ad placements. That’s where gaming fundamentally differs from other media.”

He added that the advertiser mix has broadened significantly over the past five years. “What was once a channel primarily for game studios is now attracting quick-service restaurants, beverage companies, fintech platforms, auto brands and telecom players. This is one of the most commercially active digital audiences.”

At gaming platform Felicity, brands such as 7-Eleven, Adobe, Aegean Airlines and Amazon are already leveraging in-game advertising to reach users. Anurag Choudhary, Founder and CEO of Felicity, pointed to a deeper shift underway in the advertising ecosystem. Felicity has always been into free-to-play space with immense user base growth. 

“In 2026, mobile gaming advertising is moving from volume to scarcity,” Choudhary said. “User acquisition spending will rise, not because there are more players, but because there are more products competing for limited attention.”

He noted that mobile video advertising is expected to surpass search ad spending for the first time, marking a significant inflection point. “AI has made it easier to produce ads, but it has also intensified competition. The winners will be those with clear strategies, not just large budgets,” he said.

The rapid pivot underscores how India’s gaming industry is being reshaped in the post-RMG era. While the ban has dented short-term revenues, companies are betting that advertising-led models—backed by scale, engagement and rich user data—could unlock a more sustainable and diversified growth trajectory in the years ahead.