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Real-money gaming startups lose unicorn status
At least four Indian real-money gaming (RMG) startups, including fantasy sports giant Dream11 and online gaming platform Games24x7, have dropped from their unicorn status following the government’s new law regulating online money games.
Unicorns are those startups valued at $1 billion or more.
The aftermath of the new online gaming law
Dream11 was India’s most prominent fantasy sports startup, with 260 million users, and Games24x7, with 120 million users, are among the most high-profile names impacted.
Gameskraft, with 30 million users, and Mobile Premier League (MPL), boasting 90 million users, are also affected, according to the ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025.
Zupee and WinZO Games, which were not unicorns, have also lost their spots in the country’s elite startup league.
As per the latest ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025, many RMG companies that once had billion-dollar valuations have now dropped out of the Hurun Unicorn, Gazelle and Cheetah rankings.
RMG Startups that lost Unicorn, Gazelle, Cheetah status [Source: NDTV Profit]
Dream11: Founded in 2008, Unicorn dropout
Games24x7: Founded in 2006, Unicorn dropout
Gameskraft: Founded in 2017, Unicorn dropout
Mobile Premier League (MPL): Founded in 2018, Unicorn dropout
Zupee: Founded in 2018, Gazelle dropout
WinZO Games: Founded in 2018, Cheetah dropout
Last month, Parliament passed a bill banning online money games while promoting eSports and online social gaming.
The law even prohibits advertisements for money games and bars banks and financial institutions from processing related transactions.
“These changes have hit the valuations of India’s most prominent RMG companies,” the report noted, stressing that limits on promotion and stricter taxation have further dented growth prospects.
RMG companies have scaled back on marketing, pulled out of high-profile sponsorships, including that of the Indian cricket team and laid off significant portions of their workforce.
Gaming startup Zupee laid off around 170 employees, following the government’s recent ban on real-money gaming (RMG). CEO Dilsher Singh Malhi said the decision was taken with a “heavy heart,” but added that the firm remains committed to its long-term vision of reimagining social gaming in the country.
“Amid concerns around cash burn, founders and investors are increasingly focusing on profitability, capital efficiency, and sustainable business models,” said Rajesh Saluja, managing director and CEO, ASK Private Wealth.
However, India’s overall unicorn count has surged amid a decline in gaming valuations.
The report said 11 new startups joined the unicorn club this year, taking the total to 73.