The ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025 states that Dream11, MPL (Mobile Premier League), Gameskraft, and Games24x7 have lost their unicorn status. Unicorns are private startups valued at over US$1 billion.
This change is directly linked to the recent Promotion and Regulation of Online Gaming Bill, 2025, which effectively bans real-money online games in India, disallows their advertising, stops payment facilitation for such games, and imposes stricter regulation.
Why Unicorn Status Was Lost
Several key regulatory changes have caused a sudden drop in these companies’ valuations:
- Ban on Real Money Gaming (RMG)
The law prohibits offering online games for money, meaning a large portion of Dream11’s, MPL’s, and others’ business models are no longer legal in India. The Economic Times+2Upstox – Online Stock and Share Trading+2 - Advertising & Sponsorship Restrictions
The law also bans promotion and sponsorship of real-money gaming platforms. This affects revenue streams and brand visibility. - Payment and Banking Restrictions
Financial institutions are barred from transferring or facilitating payments for real-money gaming, which disrupts the financial operations of these platforms. - Valuation Impact
Because key revenue streams are outlawed or hit by regulation, investor confidence and future earnings projections dropped sharply, pushing valuations below the $1B unicorn threshold. The Economic Times
Who Is Affected
- Dream11 – once valued around US$8 billion, lost unicorn status.
- Mobile Premier League (MPL) – also removed from unicorn list.
- Games24x7 and Gameskraft – the report lists these also as having dropped below the unicorn benchmark.
Implications
- Operational Disruption: Companies need to shift business models away from real-money gaming. That likely means focusing on social gaming, eSports, or skill-based models.
- Financial Strain: Loss of high-margin revenue, lower valuation, and loss of advertising/sponsorship income will strain finances.
- Layoffs and Market Exit: Already, reports indicate MPL is laying off a large percentage of its Indian workforce and exiting certain markets.
- Legal & Regulatory Uncertainty: Companies must navigate new compliance burdens; existing contracts (like sponsorships) are under threat due to the law.
What Happens Next
- These companies will have to re-invent their revenue models to align with the law: shift towards free-to-play formats, subscription or in-app purchases not tied to cash winnings.
- Negotiations or legal clarifications may follow about how contracts entered before the law are handled.
- Investors’ attention will move to how quickly these startups can adapt or whether they’ll lose ground to competitors in gaming verticals permitted under the new law.
Conclusion
Dream11, MPL, Gameskraft, and Games24x7 losing their unicorn status marks a major turning point for India’s real-money gaming sector. The new legislation has upended the regulatory landscape, forcing high-valued startups to recalibrate their business models, valuations, and strategies swiftly. For the ecosystem, this is a blow—but possibly also a reset toward a more regulated, sustainable model.
