India Bans Real Money Gaming; 73 Unicorn Startups in 2025 Despite Industry Shakeup
The Indian Parliament has passed a new law that brings massive reforms to the real money gaming (RMG) industry. Under the new legislation, all types of online money games are now banned, while esports and social gaming are being promoted.
RMG Startups Face Setback
After the implementation of stricter laws on RMG companies, several Indian real money gaming startups have lost their unicorn status (valuation above $1 billion). According to the ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025, many of these firms, including Dream11, are no longer listed as unicorns.
Key Provisions of the New Law:
- Ban on all forms of online real money games
- Prohibition on advertisements for money games
- Financial institutions and banks restricted from processing transactions for RMG companies
As a result of these tough rules, valuations have plummeted. Many companies have pulled out of sports sponsorships and have laid off a large number of employees.
Potential Long-Term Benefits
Despite the short-term negative impact on growth and investor confidence, the report suggests that these regulatory changes could lead to greater transparency and stability in the long run.
India's Unicorn Landscape (2025)
- Total Unicorns: 73
- New Unicorns Added in 2025: 6
- Top Unicorn Hubs:
- Bengaluru – 26 unicorns
- Delhi-NCR – 12 unicorns
- Mumbai – 11 unicorns
- Youngest Founders: Zepto’s Kaivalya Vohra and Aadit Palicha (22 years old)
Shift in Startup Focus
The report also highlights a shift in the mindset of Indian startups. Rather than chasing high revenues and deep discounts, startups are now focusing on profitability, capital efficiency, and building sustainable business models.
Source: ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025