This past week, the government dropped a bombshell on the Indian startup ecosystem — the ‘Promotion and Regulation of Online Gaming Bill, 2025’.

For the real money gaming (RMG) industry, which is already grappling with a hostile landscape of state-level regulations, punitive taxes and ongoing litigations for the past three years, the new law sounds a death knell for this nascent segment.

The nightmare began on Monday and had already secured presidential assent by Friday. The target? A $2.4 Bn industry where unicorns like MPL, Dream11, and Games24x7 gallop and thrive happily, but are now forced to go into hibernation. In the last few days, nearly a dozen startups have gone into limbo, terminating their real-money gaming operations.

Most notable of all is Dream11’s pivot to fintech, with parent entity Dream Sports stepping into the investment tech space through the launch of Dream Money.

So, what has triggered this sudden crackdown on one of India’s fastest-growing sectors? And what does the new law entail?

The legislation imposes a blanket ban on all online games involving money and bars financial institutions from facilitating any transactions related to such platforms. Offering or facilitating such services is punishable with imprisonment up to three years or a fine up to INR 1 Cr, or both.

Still, while the sudden ban came as a shock, the warning signs had been visible for years. Now, before we dive into the fallout and the damage this bill has caused to a sector that employs nearly 2.5 lakh people, here are the top stories from our newsroom this week:

India’s Neobanking Mirage: It looks like India’s neobanking fairytale is reaching its final chapter, and it’s not a happy ending. Without digital bank licences, their over-dependence on traditional banks now haunts them. Result? Stifling revenue potential and stalled innovation.

Quantum Leaps Or Stumbles? India’s startup ecosystem is abuzz with the promise of quantum computing, but it seems this high-tech dream is hitting a few snags. With a talent gap, a funding chasm, and fabrication capacity constraints, is the country’s quantum journey facing its biggest litmus test yet?

RBI, Fintech & AI: The RBI has a new directive for India’s fintech – build an indigenous, responsible, AI-powered future! But this grand AI vision is causing a stir. Some are ready to embrace the new era, while others are wondering if the RBI’s dream is a bit of a stretch.

A Storm Long In The Brewing

For all the industry’s arguments about the distinction between games of skill and games of chance, the reality on the ground was undeniable. The pitch was........

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