on November 16, 2025)Gaming companies have reported large write-downs on India-linked assets for the September quarter, underscoring the sharp impact of India’s real-money gaming (RMG) ban on corporate earnings.
Although the ban has been in effect since August, the latest earnings cycle marks the first significant balance sheet impact beyond the immediate shutdown of cash gaming operations. US-headquartered Flutter Entertainment posted a loss of $556 million in the quarter after Indian unit Junglee Games halted cash-based gaming operations.
Canada-based private equity firm Clairvest Group has divested its investment in A23 rummy operator Head Digital Works. “During the second quarter, Head Digital Works experienced a material adverse regulatory development resulting from the Indian government’s enactment of a law that prohibits real-money gaming and related facilities,” Clairwest said in a quarterly earnings announcement. “This development has made it illegal for Head Digital to conduct its business.”
Among domestic companies, Nazara Technologies reported a loss of ₹914.7 crore on its investment in parent Pokerbaazi, Moonshine Technologies. “During the quarter, new regulations in the real-money gaming space prompted Nazara to record an impairment on its investment in Moonshine…based on fair valuation as per accounting standards,” Nazara Chief Executive Nitish Mittersen said on its earnings call.
Similarly, Delta Corp wrote down its investments in DeltaTech Gaming, Head Digital Works and OpenPlay Technologies to zero. The move resulted in a fair value reduction of ₹378.3 crore as the affected businesses ceased revenue-generating operations.
Fintech firm Paytm reported a 98% drop in net profit after it booked a ₹190 crore impairment on loans extended to its joint venture First Games Technologies.
More companies with exposure to poker, rummy and fantasy games are expected to report similar impairments in the next two quarters, especially those that raised capital at peak valuations during 2020-22.
Payments companies that previously benefited from gaming transactions are also facing pressure. Mobikwik posted an eight-fold increase in net loss to ₹28.6 crore in the September quarter, with operating income falling 7% to ₹270.2 crore.
An executive at a payments firm said the decline in payment flows due to the RMG ban is temporary and companies can recover even if volumes fall by 10-15% month-on-month. However, smaller payment aggregators that had high exposure to gaming could continue to see a meaningful impact on profitability, the person said.
Meanwhile, many gaming companies have left India or reduced operations. Hike shut down its RMG app Rush, WinZo exited the RMG segment domestically and expanded into the US, and MPL stopped all cash gaming in India, with founder Sai Srinivas telling employees that 50% of the group’s revenue disappeared overnight due to the new law. According to National Payments Corporation of India data, after the ban was implemented, Unified Payments Interface transactions under the gaming category fell to 270 million in August from 351 million in July.
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