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CEO Expresses Disappointment Over Regulatory Shift
Peter Jackson, CEO of Flutter Entertainment, criticized the sudden policy change in a letter to shareholders.
“We are extremely disappointed with the sudden and unexpected change to the regulatory landscape in India. Flutter has invested significantly in India over the last number of years, responsibly delivering innovative skill-based games to Indian customers. Junglee will now only offer free-to-play gaming content as we assess our medium-term options in that market.”
Jackson’s statement reflects growing tension between international gaming operators and Indian regulators following the government’s decision to outlaw real-money games involving stakes, including skill-based formats that had previously operated legally in the country.
Financial Impact and Asset Write-Down
The impairment comprised $517 million in goodwill, $32 million in acquired and developed intangibles, and $7 million in other long-lived assets associated with Junglee Games. While the charge does not involve cash outflow, Flutter warned it would have a material effect on regional revenue and earnings trajectory in coming years.
The company projects the Indian regulatory change will result in a $70 million revenue loss and $30 million EBITDA decline in 2025. The impact is expected to deepen in subsequent years, with revenue losses of $250 million and EBITDA decline of $90 million projected for 2026. By 2027, the company estimates revenue erosion of $310 million and EBITDA fall of $130 million.
Regional Performance Decline
Flutter’s Asia-Pacific operations reported a 12% year-on-year revenue decline to $363 million in Q3 2025, bucking the trend of overall group-wide international revenue growth of 21% to $2.43 billion. The APAC decline was driven by a 35% drop in iGaming revenues, primarily related to the cessation of Indian real-money operations, and a 9% decline in sports betting revenues.
Australian operations also faced challenges during the quarter, with a 110-basis-point adverse swing in sporting results and a 5% reduction in horse racing betting handle through market leader Sportsbet. The company partially offset these pressures through cost management initiatives, including a 50-basis-point reduction in promotional spending.
India’s Legislative Framework
The Promotion and Regulation of Online Gaming Act, 2025 received presidential assent in August 2025, immediately outlawing real-money games such as rummy and fantasy contests that had previously operated under the "skill-based gaming" category. The legislation consolidated oversight under a single regulatory framework, bringing both skill-based and chance-based games under the same definition and effectively banning any game involving monetary stakes.
The law was introduced following multiple state-level restrictions and court rulings that created ambiguity over the legality of rummy and other online games for cash. Industry estimates suggest India had over 400 million online gaming players before the regulatory shift.
Broader Industry Impact
Flutter is not alone in facing financial fallout from India’s regulatory change. Indian-listed gaming company Nazara Technologies reported a ₹914.7-crore impairment on its investment in associate Moonshine Technologies following the same legislation. Nazara reduced the carrying value of its investment to ₹96.53 crore as of September 30, 2025, citing a complete halt in Moonshine’s revenue-generating operations.
Group-Wide Performance
Despite regional headwinds, Flutter reported group revenues increased 17% year-over-year to $3.79 billion in Q3 2025, while adjusted EBITDA grew 6% to $478 million. The company maintained that the impairment would not affect its adjusted EBITDA or liquidity position, describing it as an exceptional, non-recurring item.
Flutter had entered India’s real-money gaming market in 2021 by acquiring a 95% stake in Junglee Games, positioning itself to benefit from the country’s growing base of digital gamers. The company’s abrupt exit from Indian real-money operations adds to challenges facing its international portfolio as it expands aggressively in the US market through its FanDuel brand.
The company noted it remains committed to compliance and responsible gaming while assessing medium-term opportunities in the Indian market through free-to-play offerings.
Source: Flutter Entertainment
