Game Over for Real-Money Online Gaming: Rs 4,500 Crore Hit to Indian Advertising Industry

The Indian advertising sector is poised to face a loss of Rs 4,500 crore following the government’s move to ban real-money online gaming. With the Online Gaming Bill now receiving the President’s approval after being passed in Parliament, the future of gaming platforms—a major advertiser in India—is uncertain.

From the Indian Premier League (IPL) to regional sports leagues and prime-time TV shows, real-money gaming platforms have been among the top contributors to advertising spend. With the ban, this significant chunk of ad revenue may vanish.

Gaming Ads Drive Media Revenue

Ambika Sharma, founder of ad agency Pulp Strategy, highlighted that in the past four years, real-money gaming companies were among the highest advertising spenders, accounting for 6–7% of India’s total advertising expenditure annually. The bulk of this spending occurs during IPL and other major sports events. If these companies shut down, this revenue share will disappear.

Overall Impact on Advertising Industry

The Indian advertising market is valued at around Rs 70,000 crore, according to Chandan Sharma, Digital Media GM at Adani Group. Real-money gaming platforms currently contribute Rs 4,500 crore annually, a small but rapidly growing share. Their exit will impact broadcasters, digital media, and event sponsorships.

Sports to Bear the Brunt

Experts warn that sports, particularly smaller and online leagues, will face the largest setback. Broadcasters and streaming platforms could lose about Rs 2,000 crore in advertising revenue alone. Fantasy apps and real-money gaming brands have long been major advertisers for IPL and other sporting events, and their absence will leave a revenue gap that will be difficult to fill immediately.

About the Online Gaming Bill

The Online Gaming Promotion and Regulation Bill criminalizes all games played for money and restricts platforms promoting e-sports and online social gaming. The government views real-money gaming as a serious social problem negatively impacting society. Once officially notified, the bill will become law, bringing an end to real-money online gaming in India.