India’s recently passed Promotion and Regulation of Online Gaming Act, 2025, imposes a sweeping ban on real-money gaming (RMG) and related promotions. This law is expected to significantly disrupt the favored high-spending RMG brands, which were formerly among the highest advertisers in sports, digital media, and influencer marketing—especially during marquee events like the IPL
Industry experts anticipate a short-term drop in ad spend ranging from ₹9,000 crore to ₹10,000 crore—a substantial hit given RMG’s outsized share in digital and sports advertising
Which Areas Are Most Affected?
| Sector | Estimated Impact & Insight |
|---|---|
| Sports Sponsorships | Key RMG sponsors like Dream11 held loyalty deals worth hundreds of crores. Their exit destabilizes sports funding |
| Digital & Influencer Ads | RMG brands heavily funded performance marketing and influencer campaigns, especially in micro-influencers—this revenue stream will plunge by ~25% |
| Television & OTT | Ad slots during live sports and OTT streaming will see a Rs 2,000–4,500 crore vacuum |
| Overall Ad Spend Loss | Estimates range up to ₹20,000 crore in longer-term advertising revenue loss |
Industry Outlook & Coping Strategies
- Shift in Budgets: Analysts predict that categories like e-commerce, FMCG, BFSI, and automotive will step up to fill the vacuum, particularly during festival seasons
- Resilience Despite Disruption: While the immediate effect is sharp, India’s diversified ad ecosystem provides some cushioning. Agencies expect recovery through rapid budget realignment
- Long-Term Structural Gap: Some, like WPP Media’s COO Ashwin Padmanabhan, warn that RMG ad spend created a “permanent void”—its scale and immediacy are hard to replace, especially in digital performance and cricket-related sponsorships
- Emergence of e-Sports and Social-Gaming: These categories remain legal and could attract advertiser interest, though they currently lack the scale of RMG promotions India Today.
Summary Table
| Timeframe | Expected Impact |
|---|---|
| Short Term | ₹9,000–₹10,000 crore hit to ad revenues; sports and digital segments hardest hit |
| Medium Term | Seasonal boost from other sectors; reallocation of budgets may partially offset losses |
| Long Term Risk | A significant structural gap remains; e-sports may grow but won’t fully compensate |
Final Thoughts
India’s advertising ecosystem faces a sharp short-term contraction following the real-money gaming ban. With sponsorships and digital ad budgets evaporating, this is a substantial disruption—but an agile ad industry, backed by robust categories like e-commerce and FMCG, may help soften the blow over time. Still, the gap left by RMG’s massive advertising contributions will be hard to fill entirely.
