India’s online gaming industry lost nearly 11 percent of user interest in just one month, according to the latest data from Blask, following the introduction of the Promotion and Regulation of Online Gaming Act (PROGA), which banned online games played for monetary stakes in August 2025.
Data from Blask, a real-time analytics platform for the iGaming industry, shows an immediate shift in consumer behaviour. The Blask Index, which tracks aggregated user interest in gaming brands, declined from 44.43 million in August 2025 to 39.57 million in September 2025.
Immediate shift in user interest
In the months that followed, the index showed moderate fluctuations but remained around the 40 million level. In October 2025, it rose slightly to 40.07 million, suggesting that some user engagement persisted. November 2025 saw a temporary rebound to 44.26 million, nearing pre-regulation levels.
Speaking with SiGMA News, Ananay Jain, Partner and National Media & Entertainment Industry Leader at GT Bharat, said, “PROGA hit the real-money gaming industry like a switch being flipped. The moment banks and fintechs were barred from handling real money gaming (RMG) payments or ads, everything changed overnight.”
However, this recovery proved short-lived. By December 2025, the index declined again to 40.17 million, with January 2026 showing a similar level. These figures indicate that while user interest continued, it stabilised at a lower baseline compared to the period before the policy change.
Tapasya Shukla, Founder and Managing Director of Zutsu believe that this is a correction, not a contraction. “As capital shifts from real-money gaming to publisher-backed esports ecosystems, and with India investing ₹15,000 crore ($1.63 billion) in animation, visual effects, gaming, comics – extended reality (AVGC-XR) alongside global titles like BGMI and Honor of Kings scaling locally, we’re entering a phase where gaming in India becomes a structured, monetisable entertainment economy,” she said.
Revenue estimates reflect gradual market adjustment
Blask’s Market Dynamics (CEB) dataset provides estimated monthly revenue figures by aggregating projected earnings across gaming platforms. This data reflects the broader economic scale of the market and its evolution over time.
Revenue estimates for India show a gradual decline during the same period in which the Blask Index shifted. In August 2025, estimated monthly revenue stood at $431.9 million. By September, it had decreased to $415.6 million, indicating an early market response to the regulatory shift.
Jain added, “Big RMG companies like Dream11, MPL, Games24x7, WinZO, and Gameskraft had to either shut down or completely rethink their cash-game offerings. MPL closed its entire cash gaming arm, and WinZO even moved its RMG business to the United States. These weren’t minor adjustments, they were survival moves.”
Jain further explained that as companies pivoted toward free-to-play and esports formats, they faced layoffs, asset write-downs, and fresh investments in projects that were not immediately profitable. “It becomes evident,” he noted, “how much the entire sector depended on user deposits.”
The downward trend continued into October 2025, with revenue falling to $410.2 million. In November, however, the dataset recorded a brief increase to $417.9 million, suggesting that some platform activity and transactions persisted as operators and users adapted.
This recovery was again temporary. Revenue declined to $406.8 million in December 2025 and further to $404.5 million in January 2026. Overall, the data shows a shift from over $431 million in monthly revenue before the policy change to just above $404 million within five months.
Regulatory framework alters market structure
The PROGA law introduced a national framework prohibiting online games played for monetary stakes. It also impacted adjacent areas of the ecosystem, including advertising practices and financial transactions tied to such games.
The new restrictions have forced companies to reassess their operational models. Many platforms are now exploring alternative formats such as casual games, esports competitions, and entertainment-driven experiences that do not rely on monetary stakes.
Offering a policy perspective, Rakesh Maheshwari, former Senior Director and GC Coordinator at the Ministry of Electronics and Information Technology (MeitY), explained to SiGMA News that the framework could have been more structured, particularly in addressing offshore platforms. “Ideally, the government should have taken a more structured approach in the bill, especially to address offshore gambling sites,” he said.
Maheshwari also pointed out the limitations of current enforcement mechanisms, “Right now, efforts like taxation and enforcement exist, but they aren’t enough. New apps keep emerging, making control difficult.”
Offshore platforms and enforcement challenges
The regulatory shift has also drawn attention to offshore gaming platforms that operate outside domestic legal frameworks.
A survey-based report by public policy think tank, CUTS International, shows that India’s ban on online real-money gaming has not curtailed gambling behaviour as intended, but rather shifted it toward unregulated offshore betting platforms. According to the report, 83 percent of surveyed players in Tamil Nadu, southern state in India continued or began using offshore betting sites after the ban, a sharp rise from pre-ban levels.
Highlighting deeper structural challenges, he added, “The nature of the internet makes outright bans less effective, as offshore platforms operate beyond jurisdiction and are difficult to track or regulate.”
“Rather than opting for an outright ban, a well-designed regulatory framework might have been a more practical approach.”
– Rakesh Maheshwari, former Senior Director and GC Coordinator, MeitY
He concluded that while regulation in a digital environment is inherently complex, “A balanced and structured system could have delivered more effective long-term outcomes.”
The report found that offshore betting websites were already part of the gaming ecosystem; 67.8 percent of respondents reported using offshore platforms before the ban, typically alongside domestic gaming options.
Gaming ecosystem continues to adapt
Jain described the policy as a mixed outcome, “PROGA has been something of a double-edged sword. While it tightened the rules, it also pushed companies toward clearer and potentially safer growth paths.”
“With centralised governance and a strong nudge toward esports and social gaming, the industry is now naturally moving toward free-to-play models, ad-led revenues, and community-focused experiences.”
– Ananay Jain, Partner at GT Bharat
Nazara Technologies, through subsidiaries such as Nodwin and Sportskeeda, sees 2026 as an “inflection point,” with a stronger focus on scalable intellectual property (IP) development and global distribution, particularly in social gaming.
MPL has redirected investments away from cash-based formats and is now focusing entirely on free-to-play games monetised through in-app purchases such as cosmetics and battle passes.
Dream Sports, meanwhile, has emphasised cost optimisation and operational restructuring to improve efficiency.
Chandrima Mitra, Partner DSK Legal explained esports is significantly growing given that now there is more clarity between esports and skill based competitive games and online real money gaming. “India has participated in esports global championships like the esports world cup.”
“Esports is no longer a fallback option,” Jain concluded. “It is emerging as a full-fledged media-sport powerhouse, driven by sponsorships, merchandise, and creator-led content.”
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