Real-money gaming ban: Hike-owned Rush ends its operations in India
What's the story
Rush, the real-money gaming (RMG) platform from Bharti Airtel scion Kavin Bharti Mittal's Hike, is shutting down operations in India. The decision comes after the Indian government passed an online gaming bill banning RMGs. The move was announced by Mittal in a detailed Substack post. He said that the government's stance has been clear: RMGs will not be permitted in India.
Business transition
Rush's journey so far
Launched in 2020, Rush quickly became one of India's top RMG platforms with over $500 million in gross revenue within four years. The platform permitted users to play competitive skill-based games for cash prizes. However, following the government's decision, Hike will now focus on the US and global markets. Mittal said early product metrics abroad were already better than those in India.
Market shift
Disappointment over government's decision
Mittal expressed disappointment over the government's decision, saying it was not just a setback for his firm but also for all entrepreneurs and investors who have invested in India's gaming ecosystem. He wished the decision had been made sooner with clearer communication to avoid billions in investment losses and years of regulatory uncertainty. Now, Hike will go "all-in" on the US and global markets, including the UK, Canada, Australia as well as Africa and Southeast Asia.
Evolution
Hike's pivot to gaming
Hike started as a messaging app in 2012 to take on WhatsApp. However, the company shut down chat service in January 2021 and pivoted to real-money gaming with Rush. The platform had 14 money-based mobile games and Web3 capabilities for user ownership and play-to-earn mechanics.