How real money gaming ban may impact India's advertising landscape
What's the story
India's advertising sector is likely to witness a temporary slump of up to 15% in ad spends, especially in the sports category. This comes after the government's decision to ban real money gaming (RMG). The sports segment has been a major contributor to ad spending in recent years. The Promotion and Regulation of Online Gaming Act, 2025 was signed into law by President Droupadi Murmu on Friday.
Sponsorship losses
Major losses expected in sports advertising
The RMG ban is expected to have a short-term impact of ₹500-600 crore on festive and sports advertising spends. The long-term impact could be between ₹18,000-20,000 crore. Sports properties are also likely to see temporary revenue losses as RMG companies can no longer sponsor tournaments. This is expected to affect the overall advertising landscape in India. In the latest development, Dream11, a leading fantasy sports platform, has reportedly pulled out as the main sponsor for the Indian cricket team.
Market dynamics
Demand and supply shift due to RMG ban
An advertising executive explained the shift in demand and supply due to the RMG ban. They told Business Standard that "Earlier, demand and supply were balanced (in ads). Now, supply will be higher and demand will be lower." This could lead to a decline in costs for acquiring rights, such as inventory or franchisee branding on t-shirts.
Sponsorship effects
Dream11's sponsorship impact and potential sector shifts
Dream11, Team India's jersey sponsor for 2023-2025, is one of the biggest RMG advertisers. While major properties like IPL are not expected to see a major drop, some interim losses and short-term shifts are expected for one or two tournaments. Ajimon Francis, MD of Brand Finance, said sectors on the upswing, such as e-commerce and wellness brands, may fill the gap left by dropping sponsors.
Expert opinions
Projected declines in ad spends
Ashish Pherwani, Leader of Media and Entertainment Sector at EY India, estimated an annualized impact of 8-10% on total advertising spends if RMG ads are completely banned. However, for calendar year 2025, the impact may be closer to a third of that figure as implementation will cover only part of the calendar. Lloyd Mathias, angel investor and business strategist, predicted a 10-15% decline in sports segment advertisements over the coming months due to this ban.
Market resilience
Potential workarounds and seasonal ad pushes
Mathias also noted a seasonal push in advertising once the new GST rates are announced. Categories like air conditioners, consumer durables, and FMCG are likely to increase ad spends. Ashish Bhasin, Founder of The Bhasin Consulting Group and former CEO of Dentsu APAC, said businesses often find ways around regulations while remaining compliant with the law. A source suggested RMG firms could launch free-to-play extensions to maintain gaming rights and monetize through ads or subscription models like OTT platforms.