Impact of online game ban – Advertising industry in turmoil – Where will the annual investment of Rs 10,000 crore go?
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Recently, the Indian government has completely banned online games played for real money and their advertisements. This one decision has shaken the entire advertising market. Now the question is where will the advertising of about Rs 10,000 crore spent by these gaming companies go? The advertising sector in India is growing rapidly and is estimated to be worth more than Rs 150,000 crore by 2025. In such a situation, this sudden decline has become a cause of concern for many companies and brands.
Real money is a big part of the gaming industry
In 2024, the value of the online gaming industry in India was Rs 31,938 crore. RMG alone was responsible for 85% of it. This means that this industry was driving the entire gaming business. Companies like Dream11, My11 Circle and Mobile Premier League (MPL) were very popular among the people. Their names and advertisements, especially in big games like IPL, were visible everywhere. Their advertisements were seen in large numbers on TV, OTT and mobile apps. In the Rs 70,000 crore digital advertising market, RMG brands alone contributed Rs 8,000 crore.
Direct impact on the advertising world
Now that the ban on this sport and its advertisements has been imposed, digital advertising will be the most affected. Experts say that the demand for premium slots related to sports and entertainment will decrease. This could reduce the cost of advertising in big events like IPL and big OTT shows. Where RMG brands used to invest heavily in buying slots, now that kind of competition will decrease. This will definitely increase opportunities for other companies, but it will affect the overall investment.
Experts estimate that the cost of advertising may now come down slightly. For example, the cost of advertising on OTT platforms or connected TVs may come down somewhat. This is because RMG companies used to bid higher for these ads. This will not happen now. But it is also said that the companies will spend their advertising budget on e-commerce, influencer marketing and social media.
Troubles for Dream11 and My11 Circle
Dream11 is the first to be affected, which earns about 90% of its revenue from RMG. They have also pulled out of the title sponsorship of the Board of Control for Cricket in India (BCCI). My11 Circle’s five-year Rs 625 crore deal with the IPL could also be in trouble now. Both the companies together used to pay Indian cricket about Rs 1,000 crore every year. Their withdrawal will clearly affect the revenue of sports like cricket.
But the impact will not be limited to India. Dream11 is also a partner in the Caribbean Premier League and the Australian Big Bash League. Earlier, it also sponsored kabaddi and football leagues in India. Now these companies will be forced to find new ways. Experts believe that these companies may move towards free games or subscription models.
Opportunities for new players
This restriction has also opened up some new opportunities. Sports sponsorship was till now the domain of RMG companies. Due to their high advertising spend, small and new brands were not given a place. With the removal of these brands, D2C (direct-to-consumer) companies, fintech, OTT and technology companies will now get a chance. This will bring more balance in the market and many new players will be able to sponsor sports events.
Many experts believe that this change could prove good for the advertising industry in the long run. Cricket and other sports will have to find new sponsors, while smaller brands will get a chance to participate in big events. This will create more competition in the advertising space and consumers will be exposed to a variety of brands.
