New laws threatens $4b market

Just how important is the Indian market to online gambling titan Flutter?

The world’s largest online betting firm, Flutter Entertainment Plc (NASDAQ: FLUT), officially declared on Monday that it had been forced to withdraw its real-money gaming (RMG) subsidiary ‘Junglee Games’ from the Indian iGaming market.

The move was triggered as a result of new laws passed last week that banned the highly popular gambling format. In a press statement released on Monday, Flutter confirmed that it had wrapped up its Indian operations on Friday, August 22, the same day the Promotion and Regulation of Online Gaming Bill was granted Presidential assent.

Reacting to the news of the rule changes, Flutter’s CEO, Peter Jackson, was pushed to admit he was “extremely disappointed” with the decision before going on to warn, “We believe this change will drive customers to the unregulated market, offering limited consumer protections and providing no contribution to the local economy.”

Incidentally, the news from India comes just days after Flutter’s shares rose following the announcement that its FanDuel subsidiary had penned a deal with CME Group (NASDAQ: CME) to enter the lucrative predictions market in the U.S.

Contrastingly, the unexpected turn of events in India could dampen Flutter’s overall global growth predictions, particularly as Junglee was forecast to deliver $200 million in revenue and $50 million in adjusted EBITDA in 2025.

However, the move to ban RMGs is a devastating blow to Junglee, which was once the nation’s most popular rummy platform, hosting over 100 million regular users.

Legislative rollback rocks India’s thriving RMG sector

Nevertheless, Flutter’s Junglee is certainly not the only gaming studio to be affected, with countless firms reeling from the abrupt changes made by the nation’s lawmakers. Popular platforms, including those by Dream11, MPL, and Probo, were also required to shut down their real-money game titles last week.

Having pulled the plug on one of iGaming’s fastest-growing revenue sectors almost overnight, critics argue the move will undoubtedly put the brakes on India’s unprecedented online gaming boom, which was operating over 400 active game studios and RMG platforms. The Indian market was valued at over $4 billion in 2024.

Market analysts have claimed the regulatory introduction outlawing RMGs could also have a negative impact on future foreign and domestic investment into the gaming industry. It makes for a worrying illustration of how the legislative about-face could completely undermine the online gaming sector, which a recent report had established was on course for a $60 billion valuation by 2034.

While Flutter has reluctantly withdrawn from the Indian market, it’s India’s home-grown studios such as Dream11 and Probo that must now shift focus towards other gaming formats.

For these operators, they must seek out other game models – including social sweepstakes and ad-infused games – if they are to save the sector that, up until recently, was employing over 130,000 workers in India.

Detractors claim enforced player protections could backfire

Furthermore, concerns have been raised by industry insiders who state that the primary initiative of protecting consumers could essentially undermine its own objective.

The argument here is that, although the move will indeed protect citizens from the financial hazards associated with RMGs, by prohibiting the practice, they could indirectly be channeling gamblers to wager on riskier, unregulated platforms instead.

Consequently, in doing so, India may have unwittingly just become a case study showcasing that even prosperous gaming sectors are still susceptible to sudden governmental regulatory policy shifts. Not only could the speedy nature of the decision potentially unnerve prospective investors, but it will also dent India’s sizable gaming tax revenues.

That being said, should the eventual benefits of enhanced player protections supersede the financial implications, then other emerging markets may also follow suit. But, for now at least, Flutter’s high-profile exit will, in all likelihood, stem the flow of international investment into the Indian gaming ecosystem moving forward.