RMG ban will bleed Rs 10,000 crore plus from adex; sports most exposed

New Delhi: India’s advertising industry is bracing for a major shake-up after the Lok Sabha passed the Online Gaming (Prohibition and Regulation) Bill, 2025, which bans promotional activity by real-money gaming (RMG) companies. 

The legislation, aimed at tackling addiction, financial losses, and regulatory loopholes, threatens to drain an estimated Rs 10,000 crore from AdEx, leaving media platforms, agencies, and sports franchises looking for alternatives.

A former senior executive at Baazi Games said he would not be surprised if the figure were far higher than Rs 10,000 crore.

For an industry valued at Rs 33,000 crore in 2023 and projected to double to Rs 66,000 crore by 2028 at a CAGR of 14.5% (PwC 2024), the ban is more than a regulation; it is a disruption that strikes at the heart of India’s advertising and sponsorship economy.

Multiple sources told BestMediaInfo.com that real money gaming platforms rely on all forms of advertising, including influencer marketing, and spend between 25% and 50% of their revenue on customer acquisition.

That said, the top five real money gaming platforms spend more than Rs 5,000 crore, while a similar amount is collectively spent by other players, including the long tail.

RMG platforms like Dream11, MPL, and Winzo were among the most aggressive spenders across TV, digital, print, influencer marketing, and especially sports sponsorships.

Shraddha Agarwal, Co-founder and Global CEO of Grapes Worldwide, warned that the fallout goes beyond media buying, “This is going to be really disruptive. These advertisers don’t just fuel media plans; they fund creative work, BTL activations, and celebrity endorsements. It could easily create a Rs 2,000 crore hole in the spends already in the pipeline across agencies and talent.”

Jatin Kapoor, MD of Adsflourish, acknowledged that agencies would eventually adapt, but noted those built around gaming verticals may collapse. Bureddy added, “20–25% of RMG revenue goes into advertising. That’s TV, print, digital publishing, all hit. It’s a 360-degree impact.”

The biggest casualty may be Indian sports, particularly cricket.

Srikanth Bureddy, co-founder of Valueleaf Group, warned, “IPL will also be affected. Sure, it will get another brand, but not at the same cost. Fantasy is relevant, and that’s why it pays so much for sponsorship. Without it, rates will fall.”

The numbers highlight the risk. For IPL 2025, Dream11 retreated from central sponsorship while My11Circle aggressively bid Rs 625 crore for fantasy category rights. That reshuffling underscored how deeply fantasy gaming had embedded itself in cricket’s sponsorship economy.

Agarwal recalled Dream11’s star-studded IPL campaigns: “Look at the kind of campaign Dream11 did during the last IPL. The scale, the star cast; it was huge. This ban leaves a big dent not just for agencies but also for employees, because if brands aren’t advertising, how will they survive in such a cutthroat environment?”

Digital streaming platforms will also feel the pinch. “If OTT channels telecasting matches lose this ad revenue, their business models are stressed too,” said Bureddy.

A former RMG CMO added that sports and social media would be hit hardest: “RMG was one of the biggest advertisers in the sports genre and on local social networks. These sectors will see a huge dent.”

Rachit Malik, VP, Programmatic, CyberMedia, said, “The RMG ban creates an immediate Rs 2,000+ crore gap in digital and sports ad spends, heavily impacting Meta, Google, OTT and broadcasters. A silver lining is that other ad networks may capture some displaced spend. But esports cannot fully offset the loss.”

Kapoor broadened the scope: “The ecosystem is more than app developers; it includes advertisers, affiliates, influencers, OTP vendors, and SMS providers. All will be affected.”

Bureddy emphasised with a warning that even the biggest platforms are not immune: “Even Meta and Google will take a dent.”

Kapoor of Adsflourish believes the ban will be short-lived. According to him, “These bans are temporary roadblocks to ensure compliance so that the good players survive and those only there for money laundering are weeded out. Smartphone penetration and investor interest will ensure a revival in a more controlled environment.”

But Bureddy of Valueleaf Group countered sharply, questioning whether India’s economy can sustain such industries at all. “India is growing year on year, and GDP growth is there. But it doesn’t mean India is in an economic comfort zone. We’re not ready for luxury entertainment and fantasy gaming. India needs to work harder first.”

He advocated tighter payment controls, like credit cards only and stricter KYC, to keep vulnerable users out. “Credit cards don’t usually go to lower or below-middle-class people, which means you are smoothly excluding them. That’s good, because in their case, use often turns into abuse.”

While opinions diverge on the future of gaming, the immediate impact on advertising is undisputed. 

The impact cascades across the entire advertising value chain. What is clear is that the stakes go far beyond gaming apps. The fallout touches every corner of India’s advertising economy, from agencies and broadcasters to sports leagues and global tech platforms.