The Union government’s Promotion and Regulation of Online Gaming Bill, 2025, which proposes an outright ban on real money gaming (RMG) and its advertising, is expected to significantly disrupt India’s advertising expenditure (adex). Industry executives warn that the move could halt one of the most aggressive growth categories in recent years, with ripple effects across digital platforms, sports sponsorships, and influencer marketing.
Immediate impact on adex
“This category has been contributing close to 6 to 7% of spending, especially across digital and sports sponsorships. A complete advertising blackout will not just impact gaming companies but also platforms, broadcasters, and influencers who rely on this revenue stream. It is one of the most aggressive growth categories of the last few years, so the sudden stop will leave a visible dent in overall adex momentum,” Ambika Sharma, Founder and Chief Strategist at Pulp Strategy, told financialexpress.com.
Estimates suggest that RMG and fantasy platforms collectively spend more than Rs 10,000 crore annually on advertising and marketing. Yasin Hamidani, Director at Media Care Brand Solutions, noted that the disruption could be significant. “Another assessment puts the potential black hole in ad spending at nearly Rs 2,000 crore annually — this is what media platforms like Meta, OTT players, and broadcasters stand to lose if RMG ads vanish,” he said.
Revenue contribution to the exchequer
Beyond advertising, the industry has been a steady contributor to government revenue. According to Hamidani, the RMG sector generated Rs 6,909 crore in GST in just six months of FY24, while TDS collections crossed Rs 1,080 crore. Combined, the industry contributes close to Rs 20,000 crore annually through GST and income tax. A blanket prohibition, analysts argue, could erode these collections while shrinking the formal gaming economy.
Wider ecosystem concerns
The impact of the ban is expected to extend beyond gaming companies to the broader ecosystem of advertising, technology, and infrastructure. The allied segments linked to RMG are estimated to be worth around Rs 6,000 crore annually. With platforms, agencies, and content creators closely tied to the sector’s growth, executives warn that an abrupt halt could slow momentum in India’s fast-growing digital economy.