The sudden real-money gaming ban in India has claimed its most prominent victim yet: Hike, once valued at $1.4 billion and backed by Tiger Global and SoftBank, is shutting down operations completely. This dramatic development highlights the severe impact of regulatory changes on India’s thriving gaming industry.
Understanding the Real-Money Gaming Ban Impact
The Indian government’s Promotion and Regulation of Online Gaming Act, 2025, imposed a comprehensive real-money gaming ban that caught the entire industry by surprise. Consequently, this regulatory shift has forced multiple companies to reconsider their business models. Moreover, the ban specifically targets games offering cash prizes, which formed Hike’s primary revenue stream through its Rush platform.
Hike’s Journey From Messaging to Gaming
Initially launched in 2012 as a WhatsApp competitor, Hike successfully pivoted to real-money gaming after shutting down its messaging service in 2021. The Rush platform attracted over 10 million users and generated more than $500 million in gross revenue during its four-year operation. However, the recent real-money gaming ban made this business model unsustainable overnight.
Industry-Wide Consequences of the Ban
The real-money gaming ban has triggered widespread repercussions across India’s $23 billion gaming industry. Major players including Dream Sports and Mobile Premier League have begun shutting down their real-money operations. Additionally, the sector has witnessed approximately 2,000 job losses as companies struggle to adapt or exit the space entirely.
Investor Response and Future Outlook
Venture capital firms backing gaming startups have questioned founders about early warning signs regarding the real-money gaming ban. Meanwhile, some companies are exploring international markets or pivoting to new ventures like micro-dramas and financial services. The Supreme Court has yet to begin hearing challenges to the new legislation.
Founder’s Perspective on the Shutdown
Kavin Bharti Mittal, Hike’s founder, described the decision as both a disappointment and a hard outcome. He emphasized that while the U.S. business showed promise, scaling it globally would require substantial resources that no longer made strategic sense given the real-money gaming ban environment.
Frequently Asked Questions
What was Hike’s valuation before shutting down?
Hike achieved unicorn status with a $1.4 billion valuation in 2016, backed by prominent investors including Tiger Global, SoftBank, and Tencent.
How many users did Hike’s Rush platform have?
The Rush platform attracted over 10 million users and generated more than $500 million in gross revenue during its four-year operation.
What prompted the real-money gaming ban in India?
The government cited concerns about consumer harm, including reported cases of individuals dying by suicide after losing money in these games.
Are other companies affected by the gaming ban?
Yes, major players including Dream Sports, Mobile Premier League, Games24x7, and Zupee have all been impacted by the regulatory changes.
What alternatives are gaming companies exploring?
Some companies are pivoting to micro-dramas, financial services, or expanding into international markets to maintain their gaming operations.
Is there legal challenge against the gaming ban?
The Indian Supreme Court has transferred all petitions challenging the new law from state courts but hasn’t begun hearing the matter yet.
