After govt ban on real-money games, four startups lose unicorn status

Four Indian real-money gaming (RMG) startups, including Dream11, have lost their unicorn status following the government’s move to regulate the sector, according to the ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025. The other companies that dropped off the unicorn list are Gameskraft, Mobile Premier League (MPL), and Games24x7. Valuations of non-unicorn gaming platforms such as Zupee and Winzo Games have also been hit by the new rules.

The Parliament passed a legislation banning all forms of online money games while promoting eSports and social gaming last month. The crackdown on real-money gaming has slashed valuations, forced layoffs, and even pulled the plug on high-profile sponsorships. The law also prevents financial institutions from processing related transactions.

"These changes have hit the valuations of India's most prominent RMG companies," the report said, adding that these startups face limits on promotion which will slow down their growth, and tighten tax requirements.

Several firms have cut sponsorships, including of the Indian cricket team, and laid off staff following the government’s move.

Despite the decline in RMG valuations, India added a net six unicorns this year, taking the total to 73. Bengaluru remains the country’s unicorn hub with 26 startups worth $70 billion in total, ahead of Delhi-NCR (12 startups, $36.3 billion) and Mumbai (11 startups, $22.8 billion).