The financial fallout from India's Promotion and Regulation of Online Gaming Act (PROGA) has been catastrophic. Within just 90 days of the ban taking effect, real-money gaming platforms across India reported asset write-offs exceeding $840 million — a figure that underscores just how abruptly the law ended what had been one of the world's fastest-growing online gaming markets.
How the Write-Offs Happened
The write-offs reflect the near-total collapse of business operations for platforms that had invested heavily in user acquisition, technology infrastructure, content licensing, and team building — all of which became worthless overnight when PROGA made their core business illegal.
Head Digital Works, operator of the popular A23 Rummy platform, reduced its workforce from 606 employees to 178 — a 70% reduction — and reported zero revenue for nearly three months. Foreign investor Clairvest wrote off its entire INR 760-crore investment, citing an unrecoverable regulatory environment.
The Offshore Shift — The Unintended Consequence
The most significant unintended consequence of PROGA is the migration of Indian gamblers to offshore platforms. Survey data shows that the share of users spending more than two hours daily on offshore casino platforms jumped from 3.4% before the ban to 44% after PROGA.
The Policy Dilemma
The $840 million write-off figure is now being cited in the ongoing Supreme Court constitutional challenge to PROGA. Petitioners argue the law has demonstrably failed its stated objective of protecting Indian consumers while causing enormous economic damage and significant loss of tax revenue.