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Fantasy sports app Dream11 said on Thursday that it is discontinuing its operations by "pausing all 'pay to play' fantasy sports contests" on its platform. The development followed the Lok Sabha and the Rajya Sabha -- the lower and upper houses of Parliament, respectively -- clearing the Promotion and Regulation of Online Gaming Bill, 2025, widely known as the Online Gaming Bill. The proposed legislation has rattled the country's fantasy gaming industry, which has seen exponential growth with the rise of Internet penetration and low-cost connectivity.    

The incoming law -- which is yet to secure the President's assent before it becomes official -- is aimed at protecting individuals, especially the youth, from financial harm and addiction linked to online gaming involving money. It also prohibits influential people from endorsing such platforms with provisions for hefty penalty and punishment for offenders. 

"Your account balance is safe and available for you to withdraw from the Dream11 app," read a message to users on the platform. 

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Union Minister Ashwini Vaishnaw has said that lawmakers and the government were duty-bound to act against recurring social evils such as money-based online gaming, highlighting that nearly 45 crore Indians lose around Rs 20,000 crore on such platforms every year.

The law-to-be has provisions for fines to the tune of Rs 1 crore and up to three years imprisonment. The Centre also plans to set up a dedicated online gaming regulator.

"The legislation will apply to the whole of India and also to online money gaming service offered within the territory of India or operated from outside the territory of India," read an official statement. 

On the other hand, it seeks to support the growth of e-sports and online social games as safer alternatives.

ALSO READ: Online Gaming Bill: Vijay Deverakonda, Ranbir Kapoor, MS Dhoni among many celebrities once under fire for promoting betting platforms

Meanwhile, industry groups have signalled plans to challenge the ban in the Supreme Court, arguing that the government failed to hold consultations and that skill-based games like poker should not be treated on par with betting apps.

Many executives have reportedly warned of major layoffs and shutdowns of app-based businesses.

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