Ban on real money gaming Costs advertisers ₹8,000–10,000 crore annually: Report

The recently approved Promotion and Regulation of Online Gaming Bill, 2025, has sent shockwaves through not just Indian cricket but also the advertising and gaming industries. This law bans real money gaming platforms and advertising, completely eliminating one of the biggest sources of sponsorship revenues in sport. 

Several IPL franchises from the KKR, LSG, and SRH had lucrative sponsorships with these gaming companies, earning anywhere between ₹10-20 crore in revenue per franchise annually. Those revenue streams are now gone. Even with smaller leagues, state tournaments, and legends competitions, where the revenue streams relied on these sponsorships for survival, will also see drastically reduced revenues. 

Industry experts are estimating that the overall advertising market is losing on average ₹8,000-10,000 crore a year. Karan Taurani, executive vice president at Elara Capital, said, "Online gaming companies accounted for nearly 7-8% of India's total ad spends, and now that will disappear by almost 80%". His view is that real money gaming made up 75-80% of the entire gaming market, which will directly entail serious consequences for digital advertising, and in total, digital advertising will shrink by 15-20%.

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Online Gaming Ban Impacts Sports Sponsorships

Cricketers will also feel the crunch. Fantasy platforms like Dream11, My11 Circle, and MPL had brand endorsement deals with leading players. Following the ban, player endorsement income is estimated to fall by 20-25%, which is an approximate loss of ₹150-200 crores yearly. This decline will affect the younger cricketers and players outside the top tier the most, as a majority depended solely on these deals as income for brand revenue.

The government, however, has defended itself, at least in part. It cited several public-grade complaints concerning widespread and huge monetary losses amongst gamers. Prime Minister Narendra Modi stated that while endorsing the bill, it would “save our society from the ills of online money games, which can be harmful to our society”. Critics stated that if gaming is going to be controlled as a social issue, then other areas, such as liquor and casinos, should also be addressed similarly due to social issues.

To enforce the ban, they blocked banking channels that allowed for transactions. There will be a “national authority” that will regulate compliance, classify online games, and impose fines of ₹1 crore or three years’ imprisonment for offenders.

The new law should disrupt the ecosystem of digital advertising in India, but will undoubtedly create a sad lasting impression on cricket sponsorships, sports leagues, and brand endorsements.