Real-money gaming ban could send ad sector into brief cold spell

Sports sponsorships may face hiccups

India’s advertising (ad) industry could face a short-term decline of up to 15 per cent in ad spends, particularly in the sports segment, following the government’s ban on real-money gaming (RMG). The sports segment has been one of the major ad categories in recent years.

 

Sports properties could also see interim revenue losses as RMG companies will no longer be able to sponsor tournaments.

 

On Friday, President Droupadi Murmu signed the Promotion and Regulation of Online Gaming Act, 2025. As a result, festival and sports ad spends are expected to drop by nearly ₹500–600 crore in the short term, according to a source familiar with the matter. Over the long term, the impact on ad spends in India could reach ₹18,000–20,000 crore.

 

“Earlier, demand and supply were balanced (in advertisements). Now, supply will be higher and demand lower. Hence, the cost of acquiring rights — like inventory or franchisee branding on jerseys — will decline and could come under distress,” explained an ad executive.

 

Dream11, Team India’s jersey sponsor for 2023–2025, is among the biggest RMG advertisers. However, marquee sports properties like the Indian Premier League (IPL) are not expected to see drastic drops. While there may be short-term revenue losses or shifts in one or two tournaments, these properties are likely to retain their long-term value.

 

Ajimon Francis, managing director of Brand Finance, said that while some league games, such as the IPL and Women’s Premier League, may lose sponsors, the gap is expected to be filled by other sectors and brands currently on an upswing, including e-commerce and wellness.

 

“If RMG ads are completely banned, the annualised impact on total ad spends could range from 8–10 per cent,” said Ashish Pherwani, leader of EY India’s media and entertainment sector. “For calendar year 2025, since the ban will cover only part of the year, the impact may be closer to a third of that figure.”

 

Lloyd Mathias, angel investor and business strategist, said the RMG category has buoyed up the ad industry, particularly sports, during periods when e-commerce and telecommunications were in decline. Mathias, a former marketing head at Tata Teleservices and PepsiCo India, added that sports segment ad spends could drop by 10–15 per cent in the coming months.

 

“There will still be a fair degree of advertising this festival season once the new goods and services tax rates are announced. Categories like air conditioners, consumer durables, and FMCG will likely boost ad spends. Cricket events such as the Asia Cup will also provide a lift. But the absence of mobile gaming advertisements will have a detrimental effect overall,” he said.

 

Businesses tend to find ways to survive while remaining legally compliant, even if not fully adhering to the spirit of the law, said Ashish Bhasin, founder of The Bhasin Consulting Group and former chief executive officer (CEO) of Dentsu Asia-Pacific and chairman, Dentsu India.

 

Corroborating Bhasin, the source added that RMG companies may introduce “extension products” with no real-money involvement, allowing people to play for free temporarily. These platforms could later monetise through advertisements or subscription models, similar to over-the-top (OTT) services.

 

Influencer marketing is largely unaffected, as most influencers had already avoided RMG promotions due to scandals like Mahadev, Sahil Chopra, chairman of the Indian Influencer Governing Council and founder and CEO of iCubesWire, emphasised.

 

“There will be some repercussions for digital platforms, including OTT services and sports streaming platforms, as a significant portion of their ad revenues came from RMG brands. There will be a dent, though not one that cannot be recovered,” Chopra added.

 

Period

% share of Ad volume of real money game brands Jan-July 2025 Jan-July 2024 January 12 21 February 4 10 March 16 25 April 21 14 May 19 3 June 20 15 July 8 13

Medium: Televison

The highlighted part is IPL period

Source: TAM Media Research

 

Top 10 Advertisers in gaming segment[Brand]	% Share of ad volumes for Jan-Jul 2025
Cashgrail [Zupee]	47
Tictok Skill Games [Winzo Games]	22
PMSport N V [Parimatch]	11
Playgames 24*7 [My11circle]	7
Hike	5
Sporta Technologies [Dream11.Com]	5
Head Digital Works [Ace2three.Com]	2
1xbet	1
Reckitt Benckiser (India) [Dettol Hygieia]	1
Baazi Networks [Poker Baazi.Com]	0.2

Medium: Televison

Source: TAM Media Research