India’s real-money gaming industry has entered one of its most turbulent periods yet, with sweeping financial losses and thousands of job cuts continuing to mount nearly three months after Parliament passed the Promotion and Regulation of Online Gaming Act (PROGA). Although the legislation received unusually swift approval—moving from cabinet clearance to presidential assent in under four days—the government has not yet issued the notification required to put the law into effect.

The absence of formal enforcement has not stopped the sector from unraveling at remarkable speed. Companies across the gaming, investment, and fintech ecosystems have frozen operations, written down major assets, or exited real-money gaming (RMG) entirely. The collapse is being driven not by regulatory action, but by fear and uncertainty about when enforcement will begin.

Fast Passage, Long Silence

The government’s abrupt halt to money-based online gaming was announced in August, prohibiting any platform that facilitates real-money gameplay or related services. The ban does not differentiate between skill-based formats and games of chance, placing everything from fantasy sports and poker to rummy under the same restrictions. Meanwhile, esports and social or educational gaming remain explicitly encouraged.

Despite this decisive move, the government has not yet provided the formal notification needed to activate the law. Technology and gaming lawyer Jay Sayta expressed concern about the delay. “It is surprising that the government, which passed the legislation with alacrity—completing the entire process from cabinet approval to presidential assent in less than 96 hours—is now unable to issue a notification appointing a date to bring the law formally into force for the last three months,” he said, according to Storyboard18. Until the notification is issued, he noted, penalties cannot be applied and banks must legally continue supporting these businesses. “Once the notification is issued, they would immediately have to cease all operations,” he added.

Mounting Financial Fallout Across the Sector

Over the past 90 days, the industry has taken a financial hit of historic proportions. Listed companies have written off more than Rs70 billion ($840 million), according to multiple industry reports. Flutter Entertainment recorded a $556 million impairment after cash-based rummy operations at its India unit, Junglee Games, came to a standstill. The write-down contributed to a $789 million quarterly net loss, with CEO Peter Jackson describing the regulatory shock as “sudden and unexpected.”

Nazara Technologies disclosed a Rs9.15 billion impairment tied to Moonshine Technologies, parent firm of PokerBaazi, reducing the business’s valuation to a fraction of its previous worth. Canadian investor Clairvest wrote off Rs7.6 billion on its stake in Head Digital Works, describing the policy reversal as a material blow to its international investment strategy. Delta Corp similarly reduced its holdings in Deltatech, Head Digital Works, and OpenPlay Technologies to zero, resulting in Rs3.8 billion in combined value erosion.

Fintech partners deeply intertwined with the RMG ecosystem have also been hit hard. Paytm reported a 98 percent decline in net profit after booking an impairment tied to First Games Technology, while Mobikwik’s losses surged eightfold. UPI payments associated with gaming fell sharply—from 351 million in July to 270 million in August.

Jobs Lost and Revenue Drains Intensify

The consequences extend beyond corporations. More than 7,000 employees across technology, operations, and customer support roles have been laid off nationwide. Revenue losses across the sector have surpassed Rs100 billion ($1.2 billion), while the government faces a combined shortfall of roughly Rs56 billion ($670 million) in GST, TDS, and income-tax collections.

Critics argue that the suddenness of the policy shift has done more harm than good. India Technology Minister Ashwini Vaishnaw defended the ban, stating RMG platforms “exploit users with false promises of profit” and that the measure “avoids a big evil that is creeping into society.” But industry voices contend the opposite. Jaya Chahar, founder and CEO of JCDC Sports, warned that the prohibition “pushes fan engagement away from regulated Indian platforms into unregulated offshore spaces, which defeats the very intent of consumer protection.”

Former Dream11 communications officer Smrita Singh Chandra criticized the abrupt decision, saying the ban arrived “without transition, nuance or consideration of economic realities.” She added, “Declaring a platform illegal after years of validation, taxation and judicial recognition isn’t just wrong. It is deeply unethical.”

Investors Fear Long-Term Instability

Legal experts worry that the government’s sharp pivot from earlier self-regulatory frameworks signals volatility that could deter future investment. Media and technology attorney Probir Roy Chowdhury told Fortune India that the shift “signals to investors that the government can arbitrarily dismantle a thriving sector, creating significant regulatory risk.”

Before the ban, real-money gaming contributed an estimated Rs20,000 crore ($42.256 billion) in annual direct and indirect taxes and supported nearly 20,000 jobs. Whether any portion of this economic activity can be salvaged now depends on when—and how—the government finalizes the law’s implementation.