Gaming company Zupee will not challenge the government's new online gaming law that imposed a blanket ban on all real-money games in the country, the company said on August 27, joining a series of firms such as Dream11’s parent company Dream Sports and Gameskraft.
“We fully respect the legislative process and remain committed to operating and innovating within the framework of the law while collaborating with policymakers to shape India’s entertainment ecosystem,” said Zupee founder Dilsher Singh Malhi.
The company stated that it has always operated in full compliance with Indian laws and regulations and has already complied with all provisions outlined in the Act.
India's new online gaming law prohibits online money games, which are games where a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.
Following the passage of the legislation in Parliament, Zupee had discontinued all paid games on the platform, shifting entirely to free-to-play online social games. The law subsequently received the President’s assent and has now become an Act. While new deposits are no longer accepted, Zupee has requested existing users to withdraw their balances that remain fully accessible.
Earlier this week, Dream Sports co-founder Harsh Jain told Moneycontrol in an interview that the company won't challenge the government's real-money gaming ban. Dream Sports is the parent company of fantasy sports major Dream11.
"I think the government has made it clear that they don't want this right now. I don't want to live in the past. We want to focus entirely on the future and not fight with the government on something that they don't want," Jain said in an interview.
Subsequently, Gameskraft also announced that it has no intentions of pursuing any legal challenge to the country's online gaming law.
Plans to expand its range of social games
Founded by Malhi and Siddhant Saurabh in 2018, Zupee focuses on board games such as Ludo and Snakes and Ladders. It has 150 million users.
Malhi stated that the company will continue to develop online social games and entertainment avenues that "go beyond mere recreation" and is designed for today’s mobile-first audience.
"Our journey with Ludo has already demonstrated the potential of reimagining classic experiences, and our focus remains clear on expanding a diverse portfolio of interactive offerings that leverage the opportunities of the digital age," he said.
According to Malhi, the new law is not a setback but an opportunity to "double down on what we have always stood for - building culturally rooted, social games that bring people together"
"Our mission remains to create experiences that combine India’s cultural legacy with the possibilities of technology, shaping a gaming & entertainment ecosystem that is inclusive, innovative and future-ready," he said.
"We are committed to ensuring that our talented teams continue to thrive through this transition. Their creativity and resilience are Zupee’s greatest strength and with their passion driving us forward, we are confident of coming back stronger than ever,” he added.
Zupee reported its first full year of profitability in the financial year 2024, posting a profit after tax of Rs 146 crore in FY24 compared to a loss of Rs 36 crore in FY23. Zupee also saw a 36.5 percent jump in its revenue to Rs 1,123 crore for FY24, from Rs 823 crore in FY23.
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