Real-money gaming ends, why startups turn to IPOs

The Lok Sabha passed a Bill proposing a sweeping ban on real-money gaming. This and more on today's ETtech Top 5.

Also in the letter:
■ Infosys bonus hike
■ Karnataka leads gig reform
■ Fresher hiring drops

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The Lok Sabha on Wednesday passed the Promotion and Regulation of Online Gaming Bill, 2025, effectively outlawing all forms of real-money gaming in the country.

Why it matters: The government isn't just worried about addiction. It sees real-money gaming apps—fantasy sports, rummy, poker, lotteries—as national security risks. Platforms have allegedly been used for fraud, money laundering, terror financing and covert messaging, according to ministry of electronics and information technology (MeitY).

Details:

• The Bill imposes a blanket ban on all forms of money-based gaming – including betting, gambling, fantasy sports, rummy, poker, and lotteries.
• It also prohibits all advertising and promotional content across television, digital platforms, and print media.
• Violators could face up to two years in prison and fines of up to Rs 10 lakh.
• A national gaming authority will oversee regulation and compliance.

Also Read: Cabinet approves blanket ban on online money games; proposes 3 years jail, fine upto Rs 1 crore

Carve-outs: Notably, the Bill distinguishes real-money gaming from e-sports or social gaming.

• The Ministry of Youth Affairs will be tasked with promoting e-sports, while MeitY and the Ministry of Information and Broadcasting will support the development of social/educational gaming.
• To boost India's digital ecosystem, the Bill also calls for the establishment of gaming academies, research centres, and tech platforms.

Zoom out: The passage of the Bill marks a stunning reversal of the government's previous light-touch regulatory approach, including its support for the establishment of a self-regulatory body for online gaming. Today, the government is framing the Bill as both a public health and security safeguard, citing growing concerns around addiction-fuelled debt, financial ruin, and rising cases of suicide as key justifications.

Also Read: Government proposes dedicated regulator for online gaming under new law

The bottom line: India is making a clear distinction between skill-based e-sports and what it sees as predatory money gaming. But how courts interpret the “game of skill” loophole, and how well the law is enforced, will ultimately shape the future of the industry.



The move is a significant setback to India's online gaming sector, projected to reach $9 billion by 2029.

The industry was quick to sound the alarm, warning that the Bill could devastate more than 400 startups and cost over 2 lakh jobs. Industry bodies All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of India Fantasy Sports (FIFS) have written to Home Minister Amit Shah, urging a review of the legislation.

Why it matters: The sector has been among India's fastest-growing digital industries, generating Rs 20,000 crore annually in taxes and attracting over Rs 25,000+ crore in foreign direct investment (FDI). It serves an estimated 500 million users. A blanket ban, the industry argues, will decimate this momentum and serve as a body blow.

• The Bill is the second such setback in as many years, following the government's imposition of a 28% GST on total money deposited with skill-based gaming operators in 2023.

Also Read: Blanket ban on online real money gaming will kill jobs, revenue, innovation: minister Priyank Kharge

What they're saying: “On behalf of millions of professionals in India's skill gaming sector, we request a progressive regulatory regime that safeguards consumers without killing innovation,” industry groups said.

Also Read: Nazara Technologies claims online gaming bill unlikely to impact financials; shares fall nearly 7%

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Indian startups are turning to the public markets out of necessity, not preference, as late-stage private capital diminishes.

Why it matters: With crossover funds and big-ticket investors pulling back, $100 million-plus private rounds have all but disappeared. IPOs are now the fallback option for founders needing capital to scale.

Details:

• Since 2021, there have been over 30 listings, but most startups have traded below their IPO price.
• Domestic mutual funds are forcing more disciplined valuations.
• Global investors are pouring capital into AI bets, but India lacks such breakout AI startups.

Also Read: Startups aim to raise over Rs 18,000 crore via IPOs in major D-Street push

Zoom out: While Silicon Valley giants like Stripe ($91 billion) and OpenAI ($500 billion) can afford to stay private, Indian founders are boxed in by funding gaps. IPOs have become the “last resort” funding route, a sobering shift for India's venture-fuelled startup ecosystem.

Read the full column here.

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ET Soonicorns Summit 2025 is coming to Bengaluru on August 22, with answers to the most pertinent questions of our generation, including, ‘Is AI taking our jobs?'

A power-packed panel featuring Neha Singh, Co-founder and CEO, Tracxn; Raghav Gupta, Founder and CEO of Futuresense; Gopal Sharma, COO of Physics Wallah; Mekin Maheshwari, Founder and CEO, Udhyam Learning Foundation; and Piyush Raghuvanshi, CHRO at Apna, will debate ‘AI and the Future of Jobs in India — Who Wins, Who Loses, and What's Next?'

If the last conversation asked whether AI is here to take our jobs, the next one shows us where it's already creating them—in retail. From hyper-personalisation to seamless omnichannel journeys, AI isn't just changing how we work; it's redefining how brands sell and consumers shop. And deciphering this evolving landscape is paramount.

A panel discussion titled ‘AI-Driven Personalisation and Omnichannel Commerce — The Next Retail Battleground' will have Venu Nair, Myntra's Chief of Strategic Planning; Ankit Gupta, VP, Head of Product & Tech, Reliance Retail; and Rahul Kothari, COO of Razorpay, decipher the rapidly evolving retail landscape of India.

All this and more on August 22 in Bengaluru. Have you booked your spot?

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Infosys is paying employees an average of 80% performance bonus for Q1 FY26, marking a rebound after muted payouts in earlier quarters.

Why it matters: The move indicates robust earnings and lifts morale at the 323,000-employee IT giant amid a more challenging industry environment.

• Levels 4–6 staff (engineers to managers) received 75–89% of the eligible bonus.
• Bonuses will be credited with August salaries.
• Salary hikes of 5–8% were rolled out earlier this year.

The bottom line: After lean quarters, Infosys is rebuilding confidence internally, providing a small but vital boost to morale in a cautious IT services market.

Also Read: Cognizant announces salary hikes amid uncertainty in IT industry

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The Karnataka Assembly on Tuesday passed the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, becoming the first state to enact comprehensive protections for gig economy workers.

Why it matters: India's gig workforce is expected to reach 23.5 million by 2029-30, per Niti Aayog. Karnataka alone hosts about 400,000 gig workers across ride-hailing, food delivery, quick-commerce, logistics, and B2B services. The new legislation could act as a model for other states as concerns over gig work conditions grow.

What the Act mandates:

• Aggregators must now offer social security, as well as occupational health and safety cover, to their gig workers.
• A dedicated welfare fund will be set up, funded by a 1–5% levy on worker payouts per transaction, depending on the platform type.
• A Gig Workers' Welfare Board will be formed to manage worker registration, resolve disputes, verify aggregator contributions, and roll out welfare schemes.
• The board will include the state's labour minister, senior bureaucrats, four platform representatives, four gig worker representatives, and other nominees.
• The Act replaces an ordinance in force since May 30.

Also Read: Karnataka forms working groups to fix gig worker welfare levy, tech integration

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India Inc is slowing down fresher recruitment, with hiring intent dropping to 70% for July–December, down from 74% in the year's first half, according to a new report by TeamLease EdTech.

Jargon buster: Hiring intent reflects the percentage of employers planning to recruit during a given six-month period.

What's the matter? TeamLease attributes the slowdown to a mix of macro and organisational factors: AI-led restructuring across teams, persistent uncertainty in global trade, and a push to retain experienced talent in critical sectors.

Tell me more: While overall intent is down, hiring remains buoyant in ecommerce and tech startups, where 88% of employers still want to bring in fresh talent. Bengaluru leads the way with an 81% hiring intent score, ahead of Mumbai and Chennai. Smaller firms, the report added, show greater enthusiasm for recruiting freshers than large enterprises, although their intake capacity is limited.