Withdrawal panic grips online gamers after blanket ban on paid gaming platforms

Gaming firms reassure users amid withdrawal delays after sweeping online gaming ban.
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bluebeat76

Users of real-money gaming platforms are facing difficulties in withdrawing balances from their accounts after Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, which bans all forms of paid online games such as fantasy sports, rummy, and poker.

A user who wished to remain anonymous said that while attempting to withdraw money from one such platform, a pop-up appeared after some time saying the request could not be processed. Several other users across firms are reporting similar experiences.

Fund safety

Gaming companies, however, have sought to assure customers that their funds remain secure. PokerBaazi, operated by Nazara-backed Moonshine Technologies, said on its official website, “Your funds remain completely safe and you will have full access to your wallets for withdrawals. Our Player Relations team will remain available to support you with any queries or assistance you may need during this transition.”

Similarly, Games24x7, which runs fantasy gaming platform My11Circle, also told users, “All players will be able to seamlessly withdraw any balance from their wallets.”

Withdrawal clarity

Industry players clarified that users would be able to withdraw their “winning balance” and any unused deposits from wallets, subject to statutory deductions. “Users will be able to withdraw the winning balance, and unused deposits minus the TDS and any discounts that were earlier given,” said a source close to the development.

A Bengaluru-based gaming company attributed the initial glitches to a sudden surge in withdrawal requests. “Since a lot of users were trying to withdraw money at the same time, it could have resulted in difficulties. However, currently, withdrawals are happening seamlessly,” the source added.

Following the passage of the Bill, several gaming platforms announced suspension of their paid offerings. WinZo said, “In compliance with the new law, we are responsibly withdrawing impacted offerings w.e.f 22nd August 2025.” The company added that it does not plan to downsize its workforce and will redeploy employees towards other focus areas, such as social gaming.

Mobile Premier League (MPL) also announced the suspension of money-based games. In a LinkedIn post, it said, “Effective immediately [Thursday], we are suspending all gaming offerings involving money on the MPL platform in India. Online money games will not be available on the MPL platform anymore.”

Dream11 too has announced that it will shut down operations in the wake of the ban.

Legal challenge

Industry sources indicated that gaming firms are preparing to challenge the Bill in court. Legal experts following the matter pointed out that certain provisions need greater clarity, particularly around the definitions used in the legislation.

Real money gaming start-ups, including Gameskraft, Dream11, Probo, Zupee, Nazara-backed Moonshine Technologies (which operates PokerBaazi), Games24x7, and Mobile Premier League (MPL), have paused deposits on their platforms.

The Bill has also established stringent penalties and imprisonment not only for individuals and entities running or facilitating prohibited online money gaming services, but also extends these consequences to advertising and promoting such services, ensuring that the entire ecosystem supporting harmful online gaming faces comprehensive legal accountability.

The ban is expected to disrupt revenues and investor confidence in the short term, while shifting focus towards skill-based social and esports gaming.

Published on August 22, 2025