India Bans Real Money Gaming, Reshaping Startup Ecosystem; 73 Unicorns in 2025
A newly passed law by the Indian Parliament has brought massive changes to the real money gaming (RMG) sector. All forms of online money games are now banned, while e-sports and social gaming are being actively promoted.
Major Impact on RMG Startups
Following the implementation of this stringent legislation, many real money gaming companies in India have lost their unicorn status (valuation over $1 billion). According to the ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025, several top RMG startups, including those like Dream11, have dropped off the unicorn list.
What the New Law Enforces:
- Complete ban on all online real money games
- Advertisements for money games are prohibited
- Banks and financial institutions restricted from processing transactions for RMG companies
This strict regulation has led to a significant decline in company valuations, withdrawal of cricket team sponsorships, and mass layoffs in the industry.
Long-Term Vision and Stability
While the law has temporarily slowed down RMG startup growth and shaken investor confidence, the report mentions it could lead to improved transparency and long-term industry sustainability.
Unicorn Landscape in India – 2025:
- Total Unicorns: 73 (up from 67 last year)
- 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 highlights a growing focus among Indian startups on profitability, capital efficiency, and sustainable business models rather than just revenue growth and aggressive discounts.
Source: ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025