India's Real Money Gaming Startups Lose Unicorn Status Amid New Regulations

Four startups, including the prominent Dream11 and Games24x7, lost their unicorn status following a new law aimed at regulating real money gaming activities, a report released Thursday reveals.

The report notes that the law negatively affected the valuations of popular gaming companies Zupee and Winzo Games, though they were not previously classified as unicorns. This legislative move has also shaken investor confidence, although it is expected to contribute toward long-term industry stability.

While the gaming sector faced setbacks, the overall unicorn list in India grew by six, reaching 73, reflecting a thriving startup ecosystem despite regulatory challenges.

(With inputs from agencies.)