Real money gaming ban led to startup ‘explosion’: Snapdeal cofounder Kunal Bahl

Kunal Bahl, Shark Tank India judge and cofounder of Snapdeal and Titan Capital, has said that the recent developments around real-money gaming (RMG) platforms have triggered a surge in new startup activity.

Taking to X, Bahl stated: “The RMG industry has some of the brightest talent across product, tech, marketing, among other functions. The events of last week have unleashed a cambrian explosion of new startup formation.”



The term Cambrian explosion refers to a period of rapid evolutionary proliferation around 530 million years ago when many animal species first burst onto the scene.

Bahl revealed that a number of talented professionals from the RMG sector, instead of joining new companies, are now choosing to launch their own startups, and that many have approached his Titan Capital for guidance and support.

“We are quite amazed by their well-rounded grasp of consumer tech at scale,” he added.

Context

Bahl’s comments come just days after the Online Gaming Bill 2025 officially became law, following President Droupadi Murmu’s approval last Friday. The new Act has placed a nationwide ban on real-money gaming in India.

In the wake of the ban, major platforms such as Dream11 and My11Circle have shut down their real-money offerings. According to the government, the ban aims to curb fraud, money laundering, and terror financing while promoting e-sports and social gaming.

The law introduces strict penalties, including up to three years of imprisonment and fines of up to Rs 1 crore for violators.

Bahl concluded his post by extending an invitation to aspiring founders: “If you intend to startup, do get in touch with our team or write into startups at titancapital dot vc. We would love to talk to you about partnering with you on your entrepreneurship journey. (sic)”

Job losses and VC concerns

The new Act has raised widespread concerns about its impact on employment and investment in India’s gaming sector.

Many, including Karnataka IT and Biotechnology minister Priyank Kharge, criticised the government’s move to impose a blanket ban on RMG, warning that it would severely harm state revenues, job creation, and startup investments.

Kharge pointed out that more than 2,000 gaming startups and over two lakh jobs in sectors such as IT, AI, and design are now under threat.

Meanwhile, an ET report on Monday highlighted that nearly $15 billion in startup investment value is now at risk. The RMG industry has raised around $2 billion to date, and venture capital investors are scrambling to assess their next steps as uncertainty looms over the future of the sector.

The ban has not just impacted startups and tech professionals. Several Bollywood celebrities and sports personalities, many of whom have endorsed RMG platforms, are now distancing themselves from the industry.

Talent management agencies have reportedly asked media buying teams to scale back or remove advertisements featuring their clients, especially from high-visibility social media platforms.