Online Gaming Bill Sparks Advertising Revenue Shockwaves, IPL Faces Significant Impact

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India’s advertising and marketing sector is reeling from the impact of the new Online Gaming Bill, 2025, which has effectively banned the promotion of real-money gaming (RMG). This legislation has frozen a significant revenue stream, with industry estimates suggesting that RMG advertising previously accounted for nearly 10% of India’s digital ad spend, amounting to approximately ₹4,000 crore annually. The ban is expected to cause a substantial dip in digital adex and significantly affect major sporting properties like the Indian Premier League (IPL).

Key Takeaways

The Online Gaming Bill, 2025, prohibits the promotion of real-money gaming (RMG).
This ban is estimated to have wiped out up to ₹4,000 crore in annual advertising spends.
Approximately 25% of the Indian Premier League’s (IPL) ad revenue is at risk.
Major gaming companies like Flutter and Gameskraft have ceased RMG operations in India.
Advertising budgets are expected to shift towards esports, casual gaming, and creator-led marketing.

Advertising Revenue Hit

Industry executives estimate that RMG advertising was a substantial contributor to India’s digital advertising expenditure, potentially reaching ₹4,000 crore annually. Agencies that had heavily invested in gaming portfolios are now facing immediate revenue drops, with some anticipating a 15-20% decrease in RMG-linked revenues in the first quarter post-ban. The broader digital adex could see an overall hit of 6-8%.

Impact on IPL and Sports Sponsorships

The Indian Premier League (IPL) is particularly exposed, as fantasy sports companies were major anchor sponsors, contributing significantly to team revenues through title and jersey sponsorships. The ban could lead to an estimated 25% evaporation of IPL ad revenues. Beyond digital, RMG brands heavily sponsored cricket teams, leagues, and talent IPs, creating a lucrative ecosystem for agencies. Their exit leaves a void, especially as FMCG spending has been subdued.

Industry Response and Pivot

Companies like Flutter Entertainment and Gameskraft have already ceased their real-money gaming operations in India to comply with the new legislation. While the immediate impact is a decline in gaming-led ad spend, industry players see this as an opportunity to pivot. Agencies are now focusing on esports tournaments, creator ecosystems, and in-game advertising. Budgets are expected to migrate towards OTT platforms, pure-play gaming titles, and social media creators. Some predict that mainstream sports sponsorships and digital creators will be the primary beneficiaries of this shift.

Government’s Stance and Industry Concerns

The government’s rationale for the ban includes concerns about addiction and financial distress caused by RMG platforms, citing millions of affected families and significant financial losses. The industry, however, argues that a strict regulatory framework, rather than an outright ban, would have been more effective, preventing users from migrating to unregulated offshore platforms. Concerns also exist regarding the potential loss of livelihoods for those employed in the sector and a significant impact on government tax revenue.