GAME OVER? Dream11 & My11Circle BANNED in Major State, Crores at Stake! Is Your State Next?

LUCKNOW/MUMBAI – In a move that has sent shockwaves through India’s multi-billion dollar online gaming industry, the government of Uttar Pradesh has dropped a regulatory bomb, effectively banning powerhouse platforms like Dream11 and My11Circle. The decision, enacted through a new state ordinance, marks the single biggest crisis to ever hit the fantasy sports sector, immediately impacting millions of users and putting thousands of crores in revenue at risk.

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The “Uttar Pradesh (Regulation of Online Gaming) Ordinance, 2025,” which came into effect this week, prohibits all forms of online games involving money or stakes, pulling the plug on the booming fantasy sports market in India’s most populous state.

This sudden and decisive action has left the industry reeling, users in a state of confusion, and has ignited a fierce debate: Is this the beginning of the end for fantasy sports in India? And more importantly, could your state be the next domino to fall?

What Exactly Happened? The Ban Explained

For years, the online fantasy sports industry has operated in a legal grey area, defending its business model on the grounds that it is a “game of skill,” not a “game of chance” like betting or gambling. The Supreme Court of India has repeatedly upheld this view, giving platforms like Dream11 and My11Circle the legal air cover to grow into billion-dollar giants.

However, the new UP ordinance has bulldozed through this distinction. The state government’s position is clear: any online game played for monetary stakes, regardless of whether it involves skill or chance, falls under the new prohibition.

The government’s stated objectives for the ban are:

• To curb the growing “social evil” of gaming addiction.

• To protect citizens from significant financial losses.

• To prevent youth from being diverted from productive activities.

The immediate effect is that these platforms are now legally required to implement geo-blocking measures, making their apps and websites inaccessible to the estimated 20 million-plus users within Uttar Pradesh.

The Billion-Dollar Question: The Colossal Cost of the Ban

The financial fallout from this move is expected to be catastrophic. To understand the scale of the damage, one must first appreciate the size of both the industry and Uttar Pradesh’s contribution to it.

• A ₹50,000 Crore Industry: According to the latest industry reports, India’s fantasy sports market is valued at over ₹50,000 crore, with projections to grow exponentially.

• UP’s Crucial Share: Uttar Pradesh, with its massive population and deep-rooted passion for cricket, is estimated to contribute between 15% to 20% of the total user base and revenue for these platforms.

• Immediate Revenue Loss: For industry leader Dream11 and its competitor My11Circle, this translates into a potential annual revenue loss running into hundreds, if not thousands, of crores. This blow comes on top of the punishing 28% GST on full face value that the industry is already grappling with.

• Loss of Tax Revenue: The ban will also result in a significant loss of GST revenue for both the state and central governments, a point industry bodies are sure to highlight in their representations.

• The Ripple Effect: The damage isn’t confined to the gaming companies. The ban will have a devastating ripple effect on the entire ecosystem. Broadcasters, who rely on massive advertising spends from these companies during events like the IPL, will be hit hard. Sports team sponsorships, athlete endorsements, and the thousands of content creators who build their livelihoods around fantasy sports will all face an uncertain future.

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Game of Skill vs. Game of Chance: The Legal War Reignites

This ban reopens the oldest and most fundamental legal battle that has defined the industry. Indian law allows states to legislate against gambling (“game of chance”), but “games of skill” are constitutionally protected as a legitimate business activity.

The fantasy sports industry has always argued that picking a team of real-life players, analyzing their performance, and competing based on that knowledge requires significant skill, study, and judgment. The Supreme Court has, on multiple occasions, agreed with this assessment.

However, states like Andhra Pradesh, Telangana, and now Uttar Pradesh have taken the view that the moment money becomes involved, the “skill” element is secondary to the “staking” element, bringing it under the purview of gambling legislation. By passing its own ordinance, the UP government has effectively challenged the Supreme Court’s interpretation within its own borders, setting the stage for a massive legal showdown.

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Industry in Turmoil: Reactions and The Road Ahead

The reaction from the industry has been one of shock and dismay. The Federation of Indian Fantasy Sports (FIFS), the self-regulatory body for the sector, released a sharp statement calling the move “a regressive step that fails to distinguish between legitimate games of skill and gambling.”

Sources within Dream11 and Games24x7 (the parent company of My11Circle) have confirmed that they will be challenging the constitutional validity of the UP ordinance in the High Court. Their legal teams will argue that the state legislature cannot override a legal principle established by the Supreme Court.

Meanwhile, social media is flooded with reactions from disappointed users. #SaveFantasySports and #UPGamingBan are trending, with many users expressing frustration over losing a form of entertainment and engagement with the sports they love.

The Domino Effect: Is Your State Next?

The most alarming question for the industry is whether the UP ban will create a “domino effect.” If India’s largest state can successfully implement such a ban, what is to stop other states from following suit?

This move highlights the urgent need for a uniform national regulatory framework for online gaming. The current patchwork of state-by-state laws creates immense uncertainty and cripples an industry with huge potential for investment, innovation, and job creation. The central government’s efforts to regulate online gaming through IT rules and Self-Regulatory Bodies (SRBs) have been slow to materialize, leaving a vacuum that states like UP are now filling with draconian measures.

Conclusion: A Make-or-Break Moment

The ban in Uttar Pradesh is more than just a regional setback; it is an existential threat to the entire Indian fantasy sports industry. It wipes out a massive market overnight, creates a terrifying legal precedent, and sends a chilling message to investors.

The coming months will be critical. The legal battle in the courts will determine not just the fate of fantasy sports in Uttar Pradesh, but potentially across the country. This ordinance has forced a moment of reckoning. Will India choose the path of clear, progressive, and uniform regulation that fosters growth while addressing concerns of user harm? Or will it opt for a fragmented landscape of state-level prohibitions that stifle innovation and drive a booming industry underground?

For the millions of fans who enjoy fantasy sports as a way to engage with their favorite games, and for the thousands employed by this sector, the stakes have never been higher. for these type of latest news read on Daily Edge News, The game is far from over, but the rules have just been changed in the most dramatic way possible.