A new law banning online gaming for real money in India is set to redraw the rules around how the nation’s biggest sport, cricket, is funded. The change could have lessons for Australia, too. Taruka Srivastav, Chris Bartlett

Posted 3 Sep 20253 Sep 2025Wed 3 Sep 2025 at 1:06am, updated 3 Sep 20253 Sep 2025Wed 3 Sep 2025 at 5:41am

The new law prohibits banks and payment providers from processing transactions linked to real-money games. These include social games like betting, as well as skills-based casino games. Offenders face fines of up to $US10 million or up to three years jail. Celebrities endorsing such games could also face criminal liability.

The government cites mounting social harm, including suicides linked to gambling losses, as justification. Critics, however, warn that the legislation dismantles India’s compliant domestic gaming ecosystem while leaving offshore betting platforms — widely regarded as the real source of harm — relatively unchecked.

Industry bodies estimate the real-money gaming sector contributes $US200 billion annually in taxes, supports 200,000 jobs, and carries a valuation of $US2 trillion. The new law could effectively wipe out hundreds of startups overnight. Within days of the new laws passing, Mobile Premier League (MPL) said it would sack about 60 per cent of its local workforce.

Cricket sponsorships hit for six

Cricket has been the most visible beneficiary of gaming sponsorships. Platforms such as Dream11, MPL, and WinZO have poured hundreds of millions of rupees into the IPL, national team deals and grassroots tournaments. With these companies now barred from operating, cricket faces a sponsorship vacuum just as it enters a new commercial cycle.

Sponsors, including gaming platforms, have helped fund the Indian Premier League.(AP Photo: Ajit Solanki) Dream11, one of the biggest fantasy platforms, has already ended its sponsorship deal with the Board of Control for Cricket in India (BCCI). The company was India’s team sponsor in a contract worth $US44 million for the 2023–2026 cycle. With the new law in place, BCCI officials confirmed that the partnership cannot continue, leaving a major gap in Indian cricket’s commercial portfolio.

Branding and marketing expert Arun Soans believes the exit of fantasy and real money gaming (RMG) brands will be felt immediately.

“Other brands will see an opportunity here, though sports property owners will be a bit weary of existing sponsorship values and expectations from the market,” Mr Soans said.

Analysts suggest upcoming domestic cricket and franchise leagues could see a dip in title sponsorship bids, with “plan B” shifting toward fintech, consumer tech, food or other consumer goods and education tech brands.

Mr Soans said three categories that could be best placed to step in: Fintech, insurance and automobiles.

“All three are seeing an uptick in their respective industries plus the audience segments are great for sports,” he said.

For smaller sports such as kabaddi, hockey and esports — which leaned heavily on gaming sponsors — the financial strain may be even sharper.

How is the industry responding?

Dream11 parent company Dream Sports said while the change has resulted in approximately 95 per cent revenue loss, there were no plans to cut jobs.

Dream11 founder Harsh Jain told media the company had enough cash reserves to sustain its workforce “for years”. The company said it will use AI and the creator community to drive new products.

Jaya Chahar, founder and CEO of JCDC Sports, which runs Trade Fantasy Game also voiced concern.

“As an entrepreneur, it’s disheartening to see years of innovation in skill-based gaming being grouped with chance-driven gambling,” she said.

She warned that the immediate effect includes job losses across the industry, from employees and developers to agencies and athletes.

“This now pushes fan engagement away from regulated Indian platforms into unregulated offshore spaces, which defeats the very intent of consumer protection.”

Indian online gaming app Mobile Premier League (MPL) is one of those affected by the law change.(ABC: Taruka Srivastav )

Offshore and illegal operators overlooked

Nandan Kamath, founder of the GoSports Foundation and principal lawyer at LawNK, said that while the law seeks to reduce harm, it raises difficult constitutional and commercial questions.

“The law immediately shuts down an avenue of deep digital engagement that could allay certain personal and social harms from activities that nurture addictive behaviours. But effective enforcement against offshore and illegal operators will be key — and that’s an area where we have had limited success.”

When it comes to sponsorship, Mr Kamath said there will be a big shift for sports bodies.

“This apparent crisis could spur sports to lean into alternative revenue streams with creativity and intent.”

Will the ban even work?

Mr Kamath said upholding the ban will not be a simple task.

Legally, a ban faces a high bar which guarantees the right to practice any trade or business.

“Rarely have absolute restraints such as bans been upheld,” he said.

“The government may argue public health, social order, and even national security, but courts will closely assess whether there are less restrictive alternatives.”

What Australia could learn

India’s ban goes much further than Australia’s efforts when it comes to online gambling and gaming.

In 2022-23, Australians spent $244.3 billion on gambling, more than anyone else on Earth.

A gambling advertisement at an AFL game.(Supplied) Free-to-air TV screens more than a million gambling ads a year with the country’s two major sports – Australian rules football (AFL) and rugby league (NRL) – relying heavily on gambling sponsorship. Many professional sports teams rely on gambling sponsors or partners.

Martin Thomas, CEO of the Alliance for Gambling Reform, believes Australia could learn from India’s move.

“While the Alliance does not advocate for a ban on all gambling, we believe governments play a critical role in erecting ‘guard rails’ for gambling that can reduce the harm it causes and, importantly, protect children from being targeted and groomed to gamble,” he said.

“Just like tobacco – another harmful, legal, adult product – there are restrictions on it advertising, its sale, and there are public health campaigns to warn people of its dangers. This is what we need for gambling in Australia.’’

What’s next for India’s sporting leagues?

Trade Fantasy Game will explore free-to-play models, digital collectibles, and brand partnerships that reward fans with experiences rather than cash.

“Every disruption creates room for reinvention,” Jaya Chahar said.

For rights-holders, Mr Soans remains committed. “Plan B should be to stick to Plan A and continue to believe in the product.

“One actionable recommendation for leagues and teams would be to double down on digital to protect brand equity during this transition.”

For sports administrators, the urgent challenge is filling the sponsorship void ahead of the next cricket season. While diversification into non-gaming brands may soften the blow, the disruption could alter India’s sports financing model for years to come.

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