Dream11, Games24x7, Gameskraft, and Mobile Premier League (MPL) have lost their unicorn status following India’s implementation of a new law banning real-money online gaming. The legislation prohibits games that involve monetary stakes and places restrictions on related promotions, directly affecting the business models of these gaming platforms and investor sentiment.

The law has disrupted the online gaming ecosystem, as platforms that relied on real-money transactions for user engagement and revenue generation face regulatory hurdles. While these companies had previously achieved valuations exceeding $1 billion, the legal changes have reduced investor confidence, leading to a reassessment of their market worth.

Despite the setback for these major players, India’s startup ecosystem continues to grow. The country’s unicorn count reached 73 this year, with 11 new companies joining the billion-dollar club. This demonstrates resilience and continued investor interest in sectors such as fintech, health tech, and AI-driven platforms, even as online gaming faces regulatory constraints.

Industry experts note that the gaming ban may prompt companies to pivot toward skill-based or free-to-play models, digital content, and gamification services that comply with the new law. The focus will likely shift to expanding user engagement through non-monetary rewards and innovative entertainment offerings.

While the removal of unicorn status is a notable impact, it underscores the broader challenge of navigating regulatory shifts in rapidly evolving sectors. Investors and entrepreneurs are now re-evaluating strategies to align with compliance requirements while sustaining growth and market presence.

The development highlights the dynamic nature of India’s digital-native startup landscape, where rapid innovation often intersects with evolving regulatory frameworks. Companies are expected to adapt quickly, leveraging alternative revenue models and technology-driven solutions to maintain competitiveness in a changing legal environment.