The Online Gaming Bill, 2025 has sent tremors through India’s advertising and marketing industry. By banning promotion of real-money gaming (RMG), the law has effectively frozen a revenue stream that had become one of the fastest-growing categories in the Indian advertising ecosystem.
Industry executives estimate that RMG advertising, at its peak, accounted for close to 10% of India’s digital adex- nearly ₹4,000 crore annually.
For agencies that had built gaming-heavy portfolios, the impact is immediate.
“Let’s be real, real-money gaming was a massive cash cow,” said Sindhu Biswal, CEO and Founder of Buzzlab.
“Roughly 30–40% of our sports and gaming portfolio was tied directly or indirectly to these high-spending clients. Now, with the bill passed, this pipeline is frozen.
The first quarter post-ban will see a drop of 15–20% in RMG-linked revenues. Across the broader ecosystem, expect an overall hit of about 6–8% to the digital adex.”
How agencies bet big on gaming and RMG
The Indian ad industry’s growing fascination with gaming wasn’t new. Agencies like Havas Media, dentsu, GroupM and Publicis had built dedicated gaming practices over the last five years, investing in esports tournaments, in-game advertising networks, and RMG sponsorships. Real-money gaming platforms such as Dream11, MPL, Junglee Rummy and WinZO became the largest advertisers in IPL and marquee sporting properties, often outspending FMCG and auto categories.
The spillover effect was equally significant: RMG brands underwrote sponsorships of cricket teams, leagues, and even talent IPs, creating a high-growth ecosystem for agencies to monetise. But with the Online Gaming Bill outlawing all forms of paid promotions linked to RMG, this lucrative funnel has dried up overnight.
IPL hardest hit
No property is more exposed than the Indian Premier League, where fantasy sports companies had become anchor sponsors.
With the ban in place, Elara Securities estimated around 25% of IPL ad revenues could evaporate almost overnight.
The likes of Dream11 and My11Circle were not just big advertisers but also title and jersey sponsors, propping up team revenues.
In just six years, according to the firm, Dream11 alone spent ₹57,000 crore on advertising, while Games 27*7 poured in ₹10,000 crore in three years. RMG’s contribution had extended beyond digital into sports sponsorships, team tie-ups, and broadcaster deals, making it one of the fastest-growing verticals of the last five years.
With their exit, broadcasters like JioStar and linear TV networks face a significant revenue void, especially at a time when FMCG spends have been muted.
As Elara Securities notes, “ad rates will cool off post-ban”, since much of the aggressive bidding was RMG-driven. This opens white space for new-age advertisers from e-commerce, consumer tech, paan masala, and discount broking platforms to step in, albeit at lower valuations.
Now, with the Bill halting this flow, agencies, broadcasters, and leagues are bracing for a sharp correction. Digital ad growth, projected at ~10% CAGR for CY24–25, may slow by 300 basis points to 7.5%, it added.
Agencies regroup: From RMG to esports, creators and pure-play gaming
Abheek Biswas, AVP Consumer Insights, dentsu India, noted that while the shock is real, it also opens space for non-RMG gaming. “Following the ban, several campaigns have been paused or shelved, resulting in a short-term decline in gaming-led adex. But this is creating clear space for casual gaming, esports, and entertainment-focused titles to capture advertiser attention,” he said.
Agencies are now doubling down on esports tournament IPs, branded fan activations, creator ecosystems, and in-game advertising. “Creator-led ecosystems are gaining traction, with gaming influencers emerging as authentic connectors to engaged communities,” Biswas added.
According to him RMG had emerged as a major advertising driver in the gaming and sports category, extending into sponsorships of teams, leagues, and celebrity IPs. Following the ban, this pipeline has been frozen, leading agencies to reassess revenue projections as several campaigns are paused or shelved. While this has resulted in a short-term decline in gaming-led adex, it is also creating clear space for pure-play gaming viz. casual gaming, esports, and entertainment-focused titles to step in and capture advertiser attention.
For Amitesh Shah, Founder & CEO of LegaXy, the shift is less a disruption and more a reset. “Real-money gaming at its peak made up close to 10% of India’s digital adex. That entire share is now at risk. But I don’t see it as a loss- it’s a reset. The money will flow into safer, long-term categories like esports, sports IPs, and content, which are already becoming the new growth engines,” he said.
Shah added that mainstream sports sponsorships, athlete IPs, and digital creators will emerge as the three biggest beneficiaries of the spend migration.
Where will the RMG budgets go?
Executives expect three main channels to soak up the displaced ad money:
OTT and digital video platforms: “OTT is primed for higher ad spend. Brands can target young, engaged audiences with high-quality content and precise targeting, minus the RMG mess,” said Biswal of Buzzlab.
Esports and pure-play gaming titles: As agencies pivot, esports leagues and casual gaming IPs are expected to capture the young, high-engagement demographic that RMG once dominated.
Creator and social ecosystems: With Instagram, YouTube, and gaming streamers already commanding massive attention, ad budgets are expected to shift here. “Brands are pivoting to creator-led marketing and community-driven campaigns,” said Biswal.
Even beyond gaming, some money is expected to move into D2C performance-driven categories and mainstream sports IPs, both of which offer scale and regulatory safety.
While the ban has erased a significant portion of the adex, most executives agree that the spends won’t disappear. Instead, they will be redistributed into sustainable, regulation-proof categories.
