India's leading gaming companies are ramping up investments in e-sports, game publishing, digital entertainment and international markets as regulatory and tax pressures continue to reshape the domestic online gaming industry.
The recent Supreme Court verdict upholding the government's decision to levy 28% GST on the full face value of bets has emerged as the latest setback for the sector, which had already been hit by the government's move to ban real-money online gaming in 2025. Industry estimates suggest the sector's total tax liabilities could exceed Rs 2 lakh crore, including pending tax demands, penalties and interest.
The ruling comes at a time when several gaming companies have already begun diversifying beyond real-money gaming, which was once the industry's primary revenue driver.
Companies such as Dream11, Mobile Premier League (MPL), Games24x7 and Zupee expanded rapidly over the past decade as millions of Indians embraced online gaming platforms offering cash prizes. Strong investor interest, rising smartphone penetration and affordable mobile data fuelled the sector's growth.
However, companies with broader business models are now increasingly seen as better positioned to withstand regulatory and taxation-related challenges.
Nazara Technologies, one of India's few listed gaming companies, has built a diversified portfolio spanning e-sports, mobile gaming, sports media and game publishing, while also expanding its international footprint. Earlier this year, the company agreed to acquire a 50% stake in European gaming firms Bluetile Games and BestPlay Systems for Rs 918 crore, strengthening its publishing and distribution capabilities.
Dream Sports, the parent of Dream11, has expanded beyond fantasy sports through investments in sports technology, content and gaming ventures. MPL has diversified into skill-based mobile games, publishing initiatives and overseas markets, while Games24x7 has increased its focus on technology-led gaming products powered by artificial intelligence alongside its core gaming platforms.
The industry's revenue profile has changed dramatically following regulatory action against real-money gaming. According to ICICI Securities, India's gaming market has shrunk by nearly 80%, from around $6 billion before the August 2025 ban on real-money gaming to about $1 billion currently. The brokerage estimated that real-money gaming had accounted for nearly 90% of the industry's revenues before the ban. ICICI Securities also noted that the current Rs 10,000-crore gaming market has become increasingly concentrated, with a handful of major titles, including BGMI and Free Fire, contributing the bulk of industry revenues.
Companies that remain heavily dependent on real-money gaming face the greatest uncertainty. Investor concerns were evident in the market reaction following the Supreme Court verdict, with shares of casino and gaming operator Delta Corp coming under pressure.