When Gaming Went Silent: The Online Gaming Ban and What It Means for Advertising

The craze of online gaming is unmatched amongst people, particularly if you can make quick money out of it. There are more than 140 million users in India who regularly participate in online gambling and betting. And, these numbers increase to 370 million users during the Indian Premier League (IPL) cricket tournament.

For all the good and bad reasons, the online gaming industry has been a dynamic and rapidly expanding sector. In fact, the global online gaming market is expected to grow to around $ 69.88 billion by 2034 with a CAGR of roughly 10.22% between 2025 and 2034.

The gaming industry has been consistently pushing boundaries in terms of engagement, monetization, and digital advertising. For advertising agencies, this space is the goldmine. Real-money platforms contribute billions of dollars to the advertising industry. 

As per the Economic Times, India is home to 590 million gamers, i.e., about 20% of the total global gamers. There are around 1900 active gaming companies in India that employ 1.3 lakh professionals. Additionally, the online gaming sector in India was projected to grow by over two-fold to $9.1 billion by 2029, dominated by real-money gaming (RMG) platforms. 

However, on August 21, 2025, the Indian Parliament sent shock waves across the digital advertising and gaming industries. The Parliament passed the Promotion and Regulation of Online Gaming Bill and received Presidential Assent on August 22, 2025, to become the law. This triggered a shift: a complete ban on real-money gaming. 

In this blog, you will learn the far-reaching impacts of the recent law passed by the Parliament and what the implications of this ban will be on the digital advertising and gaming industries. 

Reasons Behind the Online Gaming Ban

According to BCC, India had around 400 RMG platforms before the ban. These platforms generated around $ 2.3 billion in annual taxes and supported more than 200,000 jobs.

The sweeping ban on real-money gaming platforms and advertising in gaming was like a bolt from the blue. 

However, speculations were underway that strict legislation may come soon to control the gaming industry in India. Knowing the reasons behind the ban is important for advertisers to understand the changing domain. Here are some of the major reasons: 

• Consumer Protection: RMG platforms often expose users to financial risks, gambling addiction, and exploitative practices. Around 450 million Indians lost $2.4 billion yearly to RMG.
• Youth Safety: Many minors were participating in RMG platforms, raising alarms about potential psychological harm. The gaming addiction, combined with aggressive ads, was also linked to substance abuse. Deccan Herald mentions 45% of Indians aged 12-34 were actively engaged in RMG platforms, and nearly 46% of active users experience anxiety, depression, or psychological stress.
• Regulatory Challenges: The decentralized nature of online gaming, including offshore platforms, made everything extremely difficult to monitor. ASCI reports that, in FY25, offshore betting ads were the largest source of non-compliant ads in India. They made 45.3% of the violations. ASCI had to process over 9,500 complaints and flag nearly 7,200 ads.
• Financial Accountability: RMG platforms were leading to tax evasion, illicit funding, money laundering, and unregulated money flows, which create gaps in revenue tracking and compliance. The illegal sports betting firms receive around $100 billion annually from India. Recently, ED has booked 29 actors and other celebrities to promote illegal betting apps involved in money laundering.  
• Social Responsibility: Public sentiment increasingly demanded stronger safeguards against gambling-related harms. This prompted legislative intervention.

The government aims to create a safer and more accountable gaming ecosystem with the passing of the legislation. 

The Impact of the Online Gaming Ban on Advertising Agencies

The passing of the Promotion and Regulation of Online Gaming Bill, 2025, has left advertising agencies with many questions. The law bans all forms of real-money online games, whether they're skill-based or chance-based. It also applies to popular formats like fantasy sports, poker, and other gambling-related activities. It also bans advertising and financial facilitation of these platforms or services. 

A Rapidly Vanishing Revenue Stream

One of the most immediately visible impacts of the online gaming ban is the loss of a significant advertising revenue stream. In the last few years, real-money gaming platforms have been some of the most aggressive spenders in digital advertising. Here is the snapshot of the advertising dollars at stake:

• ₹10,000+ crore annually spent on digital ads, OTT promotions, influencer campaigns, and IPL tie-ups.
• $2 billion in advertising spending is now at risk or has evaporated overnight.
• Broadcasters and OTT platforms might lose up to ₹2,000 crore in ad revenues annually.

This sudden loss of revenue stream is a huge shock for advertising agencies that have relied on it to fund campaigns across many platforms. Some other key areas where the online gaming monetization restrictions are hitting are: 

• Campaigns Centered Around Major Sports Events: 

Online gaming platforms have been major sponsors of major sports events like the IPL. The platforms have been heavily investing in digital ad spots, celebrity endorsements, and brand activations. 

One prominent example is Dream11, a leading fantasy sports platform, which bought the rights to sponsor Indian cricket teams for $ 44 million for the period of 2023 to 2026. However, it can no longer sponsor the national team after the ban.

• Influencer and Campaigns:

Many influencers and celebrities were tied to online gaming platforms, either through direct sponsorships or promotional deals. The ban will negatively affect influencer-led marketing. The real-money gaming (RMG) ban on celebrity endorsement deals will lead to a loss of around $ 24–36 million in contracts with actors, cricketers, and influencers.

• Programmatic Gaming Ads

The gaming platforms have been an important part of programmatic advertising. They were substantial buyers of in-game ad inventory. The RMG ban will see them exit from this domain, which will create a demand vacuum. It could affect ad pricing and availability. 

What Can Agencies Do Now? Adaptive Strategies for the Future

The ban on RMG gaming will cause a massive disruption, but this disruption also presents some opportunities. The advertising agencies will have to pivot quickly but steadily. This is a time for marketers and professionals to reimagine their strategies and explore new avenues for client engagement. 

Exploring New Gaming Verticals and Low-Risk Ad Formats

The legislation explicitly bans real-money gaming. But it also promotes e-sports, casual gaming, and educational gaming. These spaces are quickly expanding as digital consumption grows. Advertising agencies can help clients pivot towards these safer and more regulated areas and create brand-safe advertising environments: 

E-sports 

The sector is growing with the increasing number of competitive games and tournaments. The focus of these games is on skill-based play and tournaments. Players here compete for prestige, prizes, and sponsorships rather than monetary betting or gambling. 

For example, E-sports games like League of Legends, Counter-Strike 2, Dota 2, Fortnite, Valorant, PUBG, and StarCraft are not impacted by the ban. There are some major tournaments that attract massive global audiences, like the League of Legends World Championship and The International for Dota 2. 

Brands can advertise in the E-sports sector to connect with highly engaged and diverse gaming communities. Since there are no real-money transactions involved in these games, they can be a safe and lucrative avenue for advertisers.

Casual Gaming

Mobile gaming is still growing. Since these are easy-to-play and often played on mobile devices, they highly appeal to a broad audience who don’t engage in traditional or competitive gaming. Some popular examples are Candy Crush, Subway Surfers, Angry Birds, Fruit Ninja, Arcade, Temple Run, Clash Royale, and Word Game. 

Casual games present growing, valuable opportunities for in-game advertising and brand activations. These games attract millions of daily users. Advertisers can leverage this chance and use display ads, banner ads, video ads, or sponsored content to reach engaged players.

Educational Gaming

The demand for edtech solutions and gamified learning is on the rise. Market Data Forecast reports that the global gamification education market was valued at $ 1.14 billion in 2024 and is expected to grow from $ 1.55 billion in 2025 to $ 18.63 billion by 2033. Simply put, the market is expanding at an incredible CAGR of 36.4% during the forecast period. 

Famous educational games include Kahoot! for quizzes, Prodigy for math, Duolingo for language, GeoGuessr for geography, and classics like Hangman, Charades, and Bingo. This booming sector presents unique opportunities for advertisers because:

• Engaged Audience: Education games appeal to students, professionals, and lifelong learners. This provides advertisers access to a highly engaged, digitally-savvy, and targeted audience.
• Brand Integration: Brands can sponsor educational games or create their own branded learning tools. They can subtly integrate their messages while contributing to the learner’s experience.
• Positive Association: Associating with educational content aligns brands with values like growth, knowledge, and empowerment. It will promote trust and goodwill among consumers.

Reimagine Advertising Tactics: Storytelling and Brand Safety

Given the current ban and regulatory landscape, advertising agencies will have to shift their focus. They should aim towards creating responsible and brand-safe environments for their clients. Real-money gaming is banned, but advertisers can still tell stories that resonate with the audience. They can work on narratives like: 

• Responsible Gaming Narratives: These practices include promoting healthy gaming practices, educating audiences on the importance of responsible gaming, and supporting mental well-being within the gaming community.
• Brand-Safe Content: Agencies can turn towards creating campaigns in brand-safe environments. For instance, they can create campaigns for educational content, wellness platforms, and other non-gambling-related areas.

Diversification into New Digital Verticals

The need of the hour is to look beyond traditional gaming. Agencies have to explore new advertising verticals that are increasing in popularity. These verticals can become the next big source of revenue for the advertising industry. Some examples are: 

• Digital Culture & Wellness: People are spending more and more time on digital platforms. This phenomenon calls for platforms focused on digital wellness, fitness, and mental health. Advertising agencies can collaborate with these platforms and reach audiences in meaningful ways.
• Edtech: As mentioned above, the EdTech sector is booming, especially since. Digital platforms like Coursera and Udemy, offering online learning and courses, have gathered massive engagement. Agencies can tap into this opportunity and use this space for strategic partnerships.

Influencer Pivot Strategies

The influencer marketing landscape is also undergoing some big changes after the ban. Many influencers like Ravi Gupta (promoted Junglee Poker), Anurag Dwivedi (Face of Fantasy Cricket), and Karishma Tanna (supported Adda52) were previously tied to RMG platforms. With the ban in effect, influencers must also adapt. 

‍

Agencies can help by: 

• Working With Micro-Influencers: The focus is shifting towards niche audiences. Agencies can work with micro-influencers who have highly engaged, smaller communities. This approach will focus on quality over quantity. It will ensure that messages reach the right and attentive audience instead of just a large one.
• Creating Long-Form Content: Although short and quick promotional videos are still popular, agencies can now also encourage influencers to create longer and more engaging content that aligns with brand values.  They can educate the audience about gaming culture, lifestyle, or digital wellness. This will build stronger audience connections and more meaningful brand storytelling.

The Future of In-Game Advertising and Gaming Regulations

In the long term, the future of in-game advertising is closely tied to how gaming regulations change over time. Currently, the online gaming advertising ban has changed major revenue streams for advertisers and agencies. But the change also means new opportunities. The ban on gaming marketing doesn't signal the end of all digital gaming opportunities. 

Time and again, advertising agencies have evolved and flourished irrespective of changes. This time as well, agencies have to remain agile and prepare for any future shifts in the industry. The ban also only challenged advertisers to rethink advertising in online gaming. Rather than seeing this as a limitation, agencies can view it as a chance to experiment, diversify, and lead in a more regulated and evolving market.

Conclusion

The online gaming advertising ban has changed the domain for digital advertisers. The impact of the ban on gaming marketing is going to be felt across channels. But as the saying goes, change also brings new opportunities. The agencies need to reconsider advertising in online gaming and shift towards low-risk ad formats. 

By following advertising gaming regulations, agencies can once again turn disruption to their advantage. Staying agile, creative, and regulatory-compliant is the key for both the gaming and advertising industries.