Due to India's recent sudden enactment of a new law comprehensively banning real money gaming, Flutter Entertainment has announced the suspension of its Indian subsidiary Junglee Games' operations starting August 22. The company stated that this decision is a direct response to the drastic changes in the Indian regulatory environment and expressed "extreme disappointment."
The "Online Gaming Promotion and Regulation Act" was swiftly passed by the Indian Parliament without industry consultation and was approved by the President on August 22. The act prohibits all forms of real money gaming, including previously recognized skill-based games. Flutter is actively evaluating all legal and operational response options, aiming to restore constitutional protection for skill games and striving to adapt to the new regulatory reality.
Flutter CEO Peter Jackson stated, "We are deeply disappointed by the sudden shift in India's regulatory policy. Over the past four years, Junglee has invested heavily, forming a local team of over 1100 people, always focusing on consumer protection and responsible gaming, committed to providing compliant and innovative skill-based gaming products to Indian users." He added that this move not only affects business operations but may also force consumers to turn to unprotected informal markets, thereby weakening their contribution to the Indian economy.
According to Flutter's estimates, its Indian business was expected to achieve about $200 million in revenue and $50 million in adjusted EBITDA by 2025, with half of the profits planned for the second half of the year. The company is currently assessing the financial impact of the suspension of operations, including a possible non-cash impairment of Junglee assets, with further details to be disclosed after the evaluation is completed.
