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Read Full BioThe online gaming ban passed by India’s parliament last month has prompted gaming companies to scramble for the best response.
The Promotion & Regulation of Online Gaming Bill explicitly prohibits all forms of real-money gaming, banning fantasy sports, poker, rummy, and other games of skill in addition to games of chance.
Most companies have accepted the change in legal status, with leading fantasy sports apps, including Mobile Premier League (MPL) and Dream11, suspending pay-to-play contests.
Other companies that offered users the chance to pay to win prizes on “skill games”, including Zupee, PokerBaazi, My11Circle, and WinZO, ended their paid versions.
A popular poker and rummy platform, A23, however, has challenged the legality of the new regulations. It filed the first writ petition in the Karnataka High Court against the prohibition. The company argues that games of skill have long been distinguished from games of chance and should remain legal.
Mass Layoffs At MPL
After suspending the paid versions of its fantasy games, MPL confirmed there would be mass layoffs at the company. In an email seen by the Economic Times of India, CEO Sai Srinivas wrote, “At the end of the day, if the popular will is that a certain business model is not encouraged in India, we believe the best course of action is to accept that and build forward.”
He added, “Hence with a heavy heart we have decided that we will be downsizing our India team significantly.”
It has been reported that the company will reduce staff by as much as 60%, scaling back its current 500 employees to around 200.
Srinivas also noted that the action taken by A23 would likely be a long road with little hope of success in the courts. He stated, “We believe any relief from the courts will only materialise, if at all, after a long drawn process where we will continue to be in limbo for months, if not years.”
Dream11 Keeps Staff But Ends Sponsorship Deal
Meanwhile, Dream11 has an alternative response. The company says it will also not challenge the legislation, but it will also not reduce staff.
The platform has ended its sponsorship of India’s national cricket team, with the ₹3.58 billion ($41 million) contract untenable under new regulations.
But it plans to alter its business model to cope with the legal changes. CEO Harsh Jain announced plans for a Dream11 3.0, which will focus on free fantasy sports, advertising, and may expand globally. Jain said the company would make fantasy sports “more engaging and find a sustainable business model, and maybe even take it global as a Make-in-India product”.
He added that staff would be retrained and lead the company towards new markets, focusing on AI and innovative solutions to the changed landscape.
“We have 500 engineers who were previously focused on maintaining existing systems. Now, we’ll redirect them toward building for the future — AI-driven innovations in sports content, commerce, merchandising, and fan experiences,” Jain said.
US Companies Face Similar Dilemmas
The responses in India could provide valuable insight into how to deal with increased legal challenges for fantasy sports operators in the US.
California, which represents a large chunk of the DFS market, is clamping down on the pay-to-play versions of games. Attorney General Rob Bonta stated that the games are illegal under current law.
In response, companies have largely moved away from the against-the-house version of games towards a peer-to-peer model. Underdog initially attempted to legally challenge Bonta, but has now removed its Pick’em product. PrizePicks has also gone completely peer-to-peer in all states.
In addition, FanDuel announced the launch of a new peer-to-peer version of its DFS last week, which will launch in 17 states, but not California.
Regulators can see the risk of over-regulation with the loss of jobs and sponsorship revenue in India. States in the US must consider a range of factors when implementing new legislation, which can have far-reaching consequences.
