Gaming Report: EloElo Lands ₹114 Crore in Funding, Chhattisgarh Court Sounds Alarm & AML Rules Loom Large

This week has seen a flurry of activity in the Indian online gaming sector, with developments that could significantly impact how we engage with digital entertainment and online platforms. From major VC funding to courtroom heat and looming government crackdowns, here are the three big stories making noise right now!

First, we examine the intriguing case of EloElo, the Bengaluru-based live social gaming platform combining streaming with classic Indian games. They’ve just landed a hefty ₹114 Crores in Series B funding, pushing their valuation sky-high. We’ll explore this fresh capital injection, the vision behind the platform, and how it stacks up against the stark financial realities of startups with high cash burn and the challenging quest for profitability in the competitive social entertainment space.

Next, our focus shifts to the legal heat intensifying in Chhattisgarh. A Public Interest Litigation has squarely put online betting and opinion trading apps under the High Court’s microscope. We’ll delve into the courtroom drama, the questions being asked about enforcement of state anti-gambling laws and the court demanding straight answers from both state and central authorities on how they intend to handle these apps, blurring the lines between skill and chance.

Finally, we dissect a potentially far-reaching regulatory development brewing in Delhi. We unpack the Centre’s proposal to bring major real-money gaming operators under the stringent Prevention of Money Laundering Act (PMLA). We’ll look at what being classified as a “reporting entity” means, the potential impact on top platforms like Dream11 and Winzo following these changes, and why the government seems keen on tightening financial oversight in this booming sector.

EloElo Lands ₹114 Crores in Series B Funding: Can Live Social Gaming Turn Buzz Into Big Bucks Amidst Heavy Burn?

In the buzzing tech hub of Bengaluru, EloElo just made some serious noise. This unique venture, blending live streaming with the fun of social gaming, pulled in a hefty ₹114 Crore (around $13 Million) in its Series B funding round, spearheaded by Play Ventures Investments. This fresh capital injection sends EloElo’s valuation soaring to nearly ₹1,026 Crore ($121 million) – a striking milestone for a company still mapping out its revenue streams.

Landing this kind of backing against the backdrop of India’s red-hot video streaming market, valued at $4.30 Billion in 2024, gives EloElo a potent chance to connect with a huge audience and play a part in shaping the country’s digital future. That market itself is expected to climb dramatically, projected to hit $11.60 Billion by 2033, growing at a steady 10.77% clip each year from 2025 onwards (according to IMARC Group).

The Deal: Backing a Homegrown Vision

It all started in early 2019. Two longtime friends, Saurabh Pandey and Akshay Dubey, envisioned a digital space that captured the spirit of classic Indian get-togethers—card games, tombola nights, antakshari sessions, and musical chair fun.

They dreamed up EloElo as a place where creators could not only share their talents but also host these familiar, beloved activities for sprawling online communities. This unconventional approach has struck a chord with investors.

Now, EloElo has added serious funding to its reserves, gearing up to expand its footprint in India’s digital entertainment scene. Play Ventures led the charge with about ₹34.70 Crores. Other key participants included Gameskraft Technologies, Kalaari Capital, WestBridge Capital, Countryside Ventures, Rocket Capital, MIXI Global, along with angel investors Veenita and Vinay Mittal chipping in. Gameskraft Technologies followed Play Ventures with ₹21.70 Crores, Kalaari Capital put in ₹13 Crores, and WestBridge Capital contributed ₹8.70 Crores.

Post-investment, Play Ventures holds a 3.38% stake, Countryside Ventures has 4.46%, Gameskraft holds 2.12%, and Kalaari Capital retains 6.35%.

This round brings their total funding raised to over $50 Million. Previously, they brought in a substantial $22 Million pre-Series B round, co-led by Courtside Ventures and Griffin Gaming Partners. Over time, EloElo has consistently attracted support from venture capital big names like Kalaari Capital, WestBridge Capital, and WaterBridge Ventures, accumulating about ₹307.84 Crores before this latest infusion.

High Engagement vs. Harsh Financial Realities

EloElo has cleverly carved out its space by weaving classic Indian games like tambola and antakshari into an engaging, creator-driven live-streaming experience. With over 1,000 live streams happening daily and a claimed 150,000 creators on board, the platform’s current strategy hinges on converting this high user engagement into revenue through advertising partnerships or enticing in-app purchases.

EloElo’s focus on culturally relevant content gives it a distinct edge. However, the financial picture reveals the steep climb ahead. High cash burn remains a persistent headache in India’s social media startup scene, even with significant funding. EloElo’s numbers underscore this: they posted losses of ₹99.06 Crores in FY24, a jarring 128% jump from the previous year.

Even more strikingly, EloElo recorded zero operational revenue in FY24. Their only income was ₹5 Crores earned from interest on deposits. Meanwhile, total expenses ballooned dramatically to ₹104 Crores. Where did the money go? Marketing and promotions alone chewed up ₹40 Crore, with hefty amounts also allocated to employee salaries, payments to content creators, and essential technology investments.

This isn’t just an EloElo problem; it’s a pattern echoing across the sector. Consider ShareChat, a heavily funded player (around ₹14,760 Crores raised). Despite a 30% revenue jump in FY24, its losses still expanded to nearly ₹1,898.94 Crores. The high costs of attracting users and intense competition remain major hurdles for social media ventures in India.

Given this context, some market analysts are calling EloElo an “all-or-nothing bet.” The platform seems balanced precariously between a rapid rise fueled by engagement and a potential burnout if monetization doesn’t kick in effectively and soon.

However, there are compelling reasons to believe EloElo might just crack the code.

1. Market Convergence: India’s social entertainment and gaming arenas are increasingly overlapping. While platforms like Loco, Rooter, and Turnip are doubling down on gaming streams, apps such as Chingari, ShareChat, and Bolo Live are adding live features to keep users hooked – EloElo sits right at this intersection.
2. Proven Live Stream Revenue: Look at ShareChat, a platform with similarities to EloElo. In FY24, a significant 56.10% of its operating revenue (₹403 crore) came directly from live streaming, showing a healthy 41.4% year-over-year increase. This proves the model can work.
3. Creator Power: The trend across many platforms is shifting towards creator-hosted live content. This format naturally lends itself to direct monetization through things like virtual gifts and interactive paid features during streams.
4. Content That Connects: EloElo’s core strategy of empowering creators to host live versions of beloved games like tambola and antakshari aligns perfectly with this broader industry movement towards content that sparks real-time engagement and encourages spending.
5. Targeting a Known Opportunity: Instead of chasing a speculative business model, EloElo’s focus on the fusion of live streaming with interactive gaming taps into a revenue-generating opportunity already validated in the Indian market.
6. Beyond Ads: The very nature of live interaction sets EloElo apart from traditional social media models that lean heavily on ads, potentially offering a more direct and effective route to profitability.

The continuous flow of investor money into pre-revenue platforms like EloElo highlights a familiar high-risk, high-reward strategy prevalent in the startup world: achieve scale first and figure out profits later. The Indian tech ecosystem knows this gamble well, one that has produced both unicorn success stories and high-profile flameouts. EloElo, armed with fresh capital and a unique proposition, now faces the critical task of proving its model can deliver not just engagement but sustainable financial success.

Showdown in Chhattisgarh: High Court Demands Answers on Online Betting & Opinion Trading Apps

A legal drama is unfolding in Chhattisgarh, where the High Court has thrown down the gauntlet to both the state and central governments. It’s a complex mix involving public interest, the meteoric rise of online gaming and betting platforms, and the challenge of state laws trying to keep pace with fast-moving tech. On March 24, 2025, the Chhattisgarh High Court stepped into the ring, asking both the state and central governments to clarify exactly how they plan to handle these popular and often controversial digital platforms.

The Lawsuit Lighting the Fire

This legal spotlight follows a Public Interest Litigation (PIL) brought forward by Sunil Namdeo. He voiced serious concerns, questioning why numerous online gambling platforms are still operating despite the state having enacted the Chhattisgarh Gambling (Prohibition) Act in 2022. His lawyer, Advocate Amrito Das, laid out a scenario where these platforms, some even advertised openly, seem to operate without check, right under the watch of enforcement agencies.

Enforcement Numbers vs. Ground Reality

Responding to sharp questions from the Court, the Secretary of the Home Department filed a personal affidavit detailing the state’s actions. The numbers provided were notable: from 2022 through February 2025, authorities registered 444 cases related to illegal online gambling, made over 1,000 arrests, and seized roughly ₹2.19 Crores. The infamous Mahadev Online Gambling platform featured prominently, linked to 77 of those cases – 46 are currently progressing through trial, and 9 have already ended in convictions.

The Unanswered Question: Why Are Some Platforms Untouched?

However, the petitioner quickly pointed out what seemed like a glaring contradiction in the state’s account. While the affidavit detailed crackdowns, popular platforms like Probo, Better Opinions, Coolboost (Predchamp), and TradeX appeared to be operating without issue. According to the state’s submission, no official complaints had been lodged against these specific apps, though the Cyber Police have started making inquiries following orders dated March 28, 2025.

Advocate Das gave a concrete example, describing a prediction game on one app centred on guessing the number of likes a YouTube video would get. The Court observed this type of activity hinges heavily on chance, not skill, directly questioning its legitimacy under gaming laws.

Back to the Drawing Board: Revised Affidavits Ordered

Highlighting these inconsistencies, Advocate Das successfully argued for more clarity. The Court agreed, granting the state a three-week window to submit a revised, more thorough affidavit. The next chapter in this courtroom drama is set for May 6, 2025. The Union Government has also been pulled into the discussion, specifically involving the Ministry of Electronics and Information Technology (MeitY), indicating the issue’s national scope.

A Nationwide Crackdown Gathers Steam

This Chhattisgarh case isn’t happening in isolation. It’s a reflection of much broader scrutiny building across India concerning opinion-based trading apps. Many position themselves as fun prediction tools, but critics argue they function more like digital gambling operations. The pressure is mounting from multiple directions. Just recently, on March 22, 2025, the Finance Ministry revealed that Goods and Services Tax (GST) intelligence officers had blocked 357 websites belonging to illegal offshore online gaming firms and frozen around 2,400 associated bank accounts.

The Directorate General of Goods and Services Tax Intelligence (DGGI) reportedly has about 700 offshore e-gaming companies in its sights, targeting entities allegedly dodging GST registration and tax payments. Investigations uncovered these offshore outfits often use ‘mule’ bank accounts for transactions; DGGI reported blocking 166 such accounts.

Voices Rise Against “Digital Satta”

Stakeholders are making their concerns known loud and clear. The Confederation of All India Traders (CAIT) recently fired off letters to Union Ministers Ashwini Vaishnaw and Piyush Goyal, calling for an outright ban on these platforms. CAIT labelled them modern-day “digital satta,” warning they exploit psychological triggers and cause financial distress, particularly among young people.

CAIT has submitted a representation to Shri @PiyushGoyal Ji, Hon’ble Minister of Commerce & Industry, and Shri @AshwiniVaishnaw Ji, Hon’ble Minister of Electronics & IT, and Information & Broadcasting, seeking urgent action against misleading prediction-based opinion trading… pic.twitter.com/DYxLuhS6yF

— Confederation of All India Traders (CAIT) (@CAITIndia) March 22, 2025

These worries are echoed elsewhere. In February 2025, the Supreme Court of India started hearing a case with potentially huge implications for opinion trading apps nationwide. This move came after the Gujarat High Court dealt with a related petition from Sumit Kapurbhai Prajapati. Prajapati argued he noticed people, including children, compulsively spending money on these apps after seeing YouTube videos promoting them with promises of guaranteed profits and zero risk – something he saw as blatant gambling promotion.

While the Gujarat High Court is hearing a PIL against apps like MPL Opinio and Probo, Mumbai Police have already filed a chargesheet against Probo and its founders. TradeX hasn’t faced reported legal action yet, but its mention in recent inquiries suggests it might be next in line for scrutiny.

Civil society groups are increasingly vocal, pointing to issues of addiction, potential manipulation, and exploitation hidden behind flashy interfaces and aggressive marketing. The line between predicting an outcome and pure gambling, between skill and chance, seems dangerously blurred.

The Legal Battle Lines Harden

The upcoming May 6 hearing in Chhattisgarh could be crucial, indicating how seriously the courts and government bodies intend to address this burgeoning digital challenge. With both the State and Centre yet to file their updated responses, the precise direction things will take remains unclear. For now, the story unfolds – a contest where laws scramble to keep up with technology, and the stakes feel increasingly high, touching on both finance and ethics.

Beyond the courtroom tussles, the central government’s proactive measures also suggest a wider push to regulate the real-money gaming sector more broadly, possibly tying it closer to national anti-money laundering rules. The digital landscape is shifting, and this legal drama is right at the heart of it.

Centre Eyes Tighter Grip: Online Gaming Platforms May Fall Under Anti-Money Laundering Laws

India’s booming online gaming scene could be heading for another significant regulatory shake-up. Word on the street is that the central government is seriously considering enforcing the country’s anti-money laundering legislation to include real-money gaming operators like Winzo, Dream11, and Games24x7, among others.

According to The Indian Express, the Ministry of Finance has already circulated a proposal for inter-ministerial consultation. If this proposal gets the green light, these gaming companies would be classified as “reporting entities” under the Prevention of Money Laundering Act (PMLA), 2002. This classification carries significant weight, imposing stricter obligations on these platforms, like stricter customer verification (KYC) procedures and the mandatory tracking and reporting of any transactions deemed suspicious.

Decoding the Ministry of Finance’s Gambit

Under the existing PMLA framework, financial institutions and specific categories of businesses are mandated to meticulously maintain records of various financial transactions, diligently store the identity documents of their clients and beneficiaries, and furnish comprehensive details to the Financial Intelligence Unit-India (FIU-IND).

Bringing real-money gaming platforms into this fold would place them on par with established financial institutions and banks. This would compel them to adhere to stringent anti-money laundering rules and regulations, aligning with the global standards for countering the financing of terrorism (AML/CFT) set by the international watchdog, the Financial Action Task Force (FATF).

This potential PMLA inclusion doesn’t arrive in isolation. It lands not long after the sector absorbed a major financial hit in 2023 with a 28% Goods and Services Tax (GST) imposition on the total deposits made by users on these apps. It also follows the IT Ministry’s earlier attempts to regulate the sector, an initiative currently in limbo due to procedural complexities.

Government’s Viewpoint: Curbing Illicit Funds

The government’s rationale appears clear. “We believe there is a lot of unaccounted money circulating within the online gaming apps, and that has to be curtailed,” stated a senior government official, speaking anonymously. So, the government is moving to bring them under the PMLA ambit and require them to track and report suspicious transactions.”

The stakes are undoubtedly high, considering the sheer size of India’s real-money gaming market. A March 2025 report by FICCI and EY estimated that online gaming companies generated roughly $2.70 Billion in revenue during 2024. This growth was powered by over 155 Million Indians participating in real-money games like rummy, fantasy sports, and poker—a participation increase of 10% from 2023. With an average of 110 million people playing daily, the sector generates substantial income by taking a commission on player gameplay.

Industry Concerns: The Offshore Challenge

While various stakeholders within India’s gaming ecosystem acknowledge the domestic companies’ capacity and willingness to comply with these impending obligations, concerns linger regarding offshore betting and gambling applications that operate outside the jurisdiction of Indian regulations. This loophole became particularly apparent following the introduction of the 28% GST.

Many argue that this issue became even more pronounced after the 28% GST regime. “By conservative estimates, there’s around $25–$30 Billion circulating on these offshore betting platforms, and most of it is unaccounted for,” commented a senior executive within the gaming industry. The executive also lamented the difficulty in controlling these operators: “Blocking their domains has not been effective; they create new landing pages within minutes of being taken down.”

Enforcement Efforts and Ongoing Struggles

The government hasn’t been idle. Authorities have actively targeted non-compliant gaming operations; the IT Ministry reportedly blocked over 1,400 betting, gambling, or gaming sites between 2022 and early 2025. More recently, the Directorate General of GST Intelligence (DGGI) blocked over 350 links associated with offshore platforms not adhering to tax regulations. Despite these actions, enforcement agencies face persistent challenges, and many industry voices insist that more robust measures are needed to effectively tackle international operators flouting Indian laws.

Adding to the complexity is the stagnation of the IT Ministry’s plan to create a self-regulatory system for online gaming via amendments to the Information Technology (IT) Rules. The proposed self-regulatory bodies (SRBs) faced scrutiny over potential conflicts of interest, effectively stalling their formation and leaving the sector without the intended oversight structure.

Navigating the Way Forward

This lack of designated SRBs has tangible consequences. In an ongoing legal challenge in the Madras High Court to Tamil Nadu’s state-level online gaming rules, the Ministry of Electronics and Information Technology (MeitY) itself stated that the relevant provisions in its IT Rules remain “unenforceable” precisely because no SRBs have been appointed. Until these regulatory knots are untangled, online gaming companies in India must navigate a complex web of existing laws and the looming prospect of tighter PMLA scrutiny as the government works to bring this rapidly expanding entertainment sector fully into the regulatory fold.