Connect with us

Asia

Sequoia Capital India Leads $450 Million Round for Polygon With SoftBank, Galaxy, Tiger, Republic Capital

Published

on

Reading Time: 3 minutes

 

The backing from leading global institutions is a vote of confidence in Polygon’s position as Ethereum’s leading scaling solution and the team’s vision for Web3.

Polygon raised about $450 million in a funding round led by Sequoia Capital India with participation from more than 40 major venture capital firms including SoftBank Vision Fund 2, Galaxy Digital, Galaxy Interactive, Tiger Global, Republic Capital and prominent investors like Alan Howard (co-founder, Brevan Howard) and Kevin O’Leary (Mr. Wonderful from ABC’s Shark Tank).

Polygon’s first major financing round since the project’s founding in 2017 has also attracted contributions from Alameda Research, Transcend Fund, Makers Fund, Animoca Brands, global video game leader and games industry investor Scopely, dune ventures, Union Square Ventures, Alexis Ohanian’s Seven Seven Six, Elevation Capital, Sino Global Capital, DCG, Standard Crypto, Celsius, Dragonfly Capital, Variant Fund, Blue Pool Capital, WorkPlay Ventures (led by Zynga founder Mark Pincus), and many more. The funds will be raised through a private sale of Polygon’s native MATIC token.

This will allow the team to consolidate its lead in the race to scale Ethereum, obviating the need for alternative blockchains and paving the way for mass adoption of Web3 applications. Polygon is building a suite of scaling solutions, including Polygon PoS, Polygon Edge and Polygon Avail, that is similar to what Amazon Web Services offers Web2 developers — a tool for every possible use case. The team is also investing in cutting-edge zero knowledge (ZK) technology that will be key to onboarding the next billion users to Ethereum.

Polygon has always been a community-first project and owes its success to the ecosystem of early believers, developers and stakeholders. This investment round is the tide that lifts all boats and exemplifies the role the community plays in making Web3 a reality.

“Web3 builds on the early Internet’s open-source ideals, enabling users to create the value, control the network and reap the rewards. Ethereum, scaled by Polygon, will be the bedrock of this next stage in the Web’s evolution,” said Polygon co-founder Sandeep Nailwal. “Technological disruption didn’t start with Web2, nor is it going to end there. That’s why we are very excited to see some of the same firms that funded the previous round of innovation now being our Web3 vision.”

The most pressing question for the Ethereum community has been how to increase the network’s capacity to handle more transactions. The skyrocketing popularity of new applications in decentralized finance (DeFi) and non-fungible tokens (NFTs) brought with it congestion and soaring fees. Polygon has stepped in with a broad range of scaling options and transaction rates that are among the industry’s lowest.

Over the past year, Polygon has attracted some of the biggest projects in Web3, from DeFi protocols such as lending platform Aave to luxury brands company Dolce & Gabbana and NFT marketplaces including OpenSea and Mark Cuban’s Lazy.com. Virtual worlds such as Decentraland and Animoca Brands’ The Sandbox are also laying the groundwork for the metaverse on the network. More than 7,000 decentralized apps (dApps) are currently building on Polygon, making it the main destination for Web3 platforms and developers.

“The platform of choice to build on the blockchain today is Polygon. Thousands of developers across a range of applications are choosing Polygon and their complete set of scaling solutions for the Ethereum ecosystem,” said Shailesh Lakhani, MD at Sequoia India. “This is an ambitious and aggressive team, one that values innovation at its core. Sequoia Capital India is thrilled to lead this significant financing round.”

Polygon PoS adoption has soared exponentially, with a billion transactions recorded last year. The network’s more than 130 million unique addresses and over 2.67 million monthly active users now generate some 3 million transactions per day, more than double the volume of Ethereum. Polygon’s native MATIC token has a market capitalization of over $12 billion.

To make sure the growth can continue into the foreseeable future, Polygon is making major investments into zero knowledge cryptography, a technology widely seen as the end game for blockchain scaling. The core development team made it a centerpiece of its strategic vision in the Zero Knowledge Thesis published in August. As part of that mission, the team has committed $1 billion, a significant portion of the treasury, to ZK-related efforts.

Polygon is now home to an unrivaled collection of ZK efforts. The portfolio includes a zkEVM being developed by Polygon Hermez, privacy-focused Polygon Nightfall rollup built in collaboration with EY, Polygon Miden’s general purpose STARK-based rollup and Polygon Zero team applying a technique called recursion to ZK proofs.

“Adoption by individual users and enterprises, the emergence of real-world applications like DeFi and NFTs, and broader involvement from the institutional community are all strong indicators that Web3 has passed a major installation milestone and is here to stay,” Galaxy Digital CEO Mike Novogratz said. “Together, Polygon and Ethereum are building the base layer for a new Internet, which is why we’re excited to play a role in this important fundraise.”

Continue Reading
Advertisement

Asia

India Bans Real-Money Gaming

Published

on

india-bans-real-money-gaming
Reading Time: 3 minutes

 

India’s lower house of parliament has passed a sweeping online gaming bill that, while promoting esports and casual gaming without monetary stakes, imposes a blanket ban on real-money games — threatening to disrupt billions of dollars in investment and significantly impact the real-money gaming industry, which could see widespread shutdowns.

Titled the Promotion and Regulation of Online Gaming Bill, 2025, the legislation aims to prohibit real-money games nationwide — whether based on skill or chance — and ban both their advertisement and associated financial transactions.

“In this bill, priority has been given to the welfare of society and to avoid a big evil that is creeping into society,” India’s IT minister Ashwini Vaishnaw said in Parliament while introducing the bill.

The proposed legislation restricts banks and other financial institutions from allowing transactions for real-money games in the country. Anyone offering these games could face imprisonment for up to three years, a fine of up to ₹10 million (approximately $115,000), or both. Additionally, celebrities promoting such games on any media platform could be liable for up to two years of imprisonment or a fine of ₹5 million (roughly $57000), the bill states.

Vaishnaw said the decision to bring the legislation was to address several incidents of harm, including cases where individuals reportedly died by suicide after losing money in games. However, industry stakeholders largely attribute these incidents to offshore betting and gambling apps, which many believe will not be addressed by this legislation.

“This law is bound to face litigation as it fails the test of proportionality under Article 19(1)(g). Instead of safeguarding consumers, it dismantles compliant onshore companies while opening the door wider for illegal offshore betting platforms that are the real source of financial harm,” said Meghna Bal, director of the New Delhi-based think tank Esya Centre.

Article 19(1)(g) of India’s Constitution guarantees citizens the right to practice any profession or carry on any occupation, trade or business.

Ahead of the bill’s introduction in the Indian Parliament, industry bodies wrote to Prime Minister Narendra Modi, urging him to intervene. The letter — sent by the Federation of Indian Fantasy Sports, All India Gaming Federation and E-Gaming Federation warned that the proposed legislation could benefit “illegal offshore gambling operations” while forcing Indian businesses to shut down. These industry bodies represent Dream Sports, MPL, WinZO, Gameskraft, Nazara Technologies and Zupee, among other real-money gaming companies.

“By shutting down regulated and responsible Indian platforms, it will drive [millions] of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without any safeguards, consumer protections, or taxation,” the letter stated. (Matka is a form of illegal gambling that originated in India, involving betting on random numbers.)

The three industry bodies estimated that real-money gaming startups in India have a combined enterprise valuation of ₹2 trillion (approximately $23 billion), generate cumulative revenues of ₹310 billion (around $3.6 billion), and contribute ₹200 billion (roughly $2.29 billion) annually in direct and indirect taxes. They also project a 28% compound annual growth rate that would double the industry’s size by 2028. The industry groups warned that the blanket ban could result in the loss of more than 200,000 jobs and the closure of over 400 companies.

A similar letter was also written to Indian Home Minister Amit Shah by these three industry associations.

The bill was passed by voice vote in a noisy lower house less than seven minutes after it was introduced for debate. It now requires approval from the upper house and the president to become law.

Meanwhile, some companies in casual gaming and esports have welcomed the move.

“We applaud this decision as it allows us to focus on the ongoing concerns as a business — monetization, retention, and most importantly, building great IP for India and the world, rather than having to explain to our audiences what we are to begin with,” said Sumit Batheja, CEO and co-founder of Ginger Games, which is part of Krafton’s Indian gaming incubator and makes hyper casual games.

Krafton is the South Korean gaming company behind the popular battle royale game PUBG.

In 2023, the Indian government amended the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, to curb “user harm” from real-money games and proposed self-regulatory bodies to limit illegal betting and gambling while allowing legitimate games. However, the self-regulation approach faltered due to conflicts among industry stakeholders over enforcement and standards.

New Delhi imposed a 28% tax on online gaming in 2023 to curb real-money play, prompting an outcry from industry stakeholders. Top investors — including Tiger Global, Peak XV Partners and Kotak — urged Modi to reconsider, warning of $2.5 billion in write-offs and the potential loss of one million jobs. The tax, however, remained in place, even as companies challenged its retrospective application in the Supreme Court. Recent reports suggest it may be revised upward to 40% under new rules.

The post India Bans Real-Money Gaming appeared first on European Gaming Industry News.

Continue Reading

Asia

Indonesia Prepares VPN Laws to Crack Down on Illegal Online Gambling

Published

on

indonesia-prepares-vpn-laws-to-crack-down-on-illegal-online-gambling
Reading Time: 2 minutes

 

Indonesia is preparing to introduce new rules targeting the use of Virtual Private Networks (VPNs), to crack down on the broader access to illegal online gambling. The move signifies a stronger push by authorities to tighten internet oversight amid growing concerns over unregulated digital activity.

While officials have not really explicitly mentioned gambling platforms, the intention seems to be clear. The aim of the move is to restrict tools that allow Indonesians to bypass government firewalls and access banned content. As the country battles a surge in illegal online gambling, VPNs have become a major target in the regulatory issue.

Indonesia currently ranks as the third-highest user of VPN services worldwide, behind only the UAE and India. A 2024 report by Windscribe, a global VPN provider, found that roughly 41% of Indonesian internet users use VPNs. This tool is largely used to bypass state-enacted censorship and access geo-blocked websites.

Online gambling, is strictly banned under Indonesian law, but is still thriving via VPN-enabled access to international platforms. These tools allow users to hide their digital footprints, and makes it challenging for authorities to enforce law.

“VPNs are being misused to reach sites and apps that are clearly illegal. We are developing a framework to ensure their usage aligns with the law,” said Semuel Abrijani Pangerapan, Director General of Informatics Applications at the Ministry of Communication and Informatics, in a recent statement.

The upcoming regulations, which are currently under ministerial review, aim to restrict VPN use by requiring providers to register with the government. Unregistered VPN services could be blocked outright. Officials are also considering legal consequences for users found accessing restricted services via unlicensed VPNs.

As for now, no timeline has been officially announced. But local media has reported that draft rules may be finalized by the end of the year.

The current online gambling environment in Indonesia is vast, and mostly hidden. Users often access offshore platforms hosted in regions with lenient enforcement. These platforms promise anonymity, instant payouts, and enticing rewards, thus driving a cycle of addiction and financial ruin for many.

The post Indonesia Prepares VPN Laws to Crack Down on Illegal Online Gambling appeared first on European Gaming Industry News.

Continue Reading

Asia

Indian Gaming Industry Expresses Concern About Proposed Online Gaming Bill

Published

on

indian-gaming-industry-expresses-concern-about-proposed-online-gaming-bill
Reading Time: 2 minutes

 

The real money gaming (RMG) industry has been thrown into unprecedented turmoil after the Union Cabinet approved The Promotion and Regulation of Online Gaming Bill, 2025. The proposed legislation seeks to outlaw all forms of pay-to-play online games, covering both games of skill and games of chance. If passed in Parliament, this would effectively ban the operations of legitimate RMG platforms across the country.

Industry stakeholders say the move was taken abruptly and without dialogue. “There was absolutely no consultation with the companies that have built this sector,” one executive said, adding that the decision violates multiple constitutional safeguards and will almost certainly face a legal challenge.

The industry’s pushback comes at a delicate moment. Only last week, on August 12, the Supreme Court bench of Justices J.B. Pardiwala and R. Mahadevan reserved its judgment on petitions concerning the classification of online games of skill and chance. The Court’s ruling was expected to provide clarity on a sector valued at over $3 billion. Instead, the Cabinet’s surprise approval of the bill has left companies reeling.

Industry voices argue that the move disregards the legitimate contributions of RMG platforms to India’s economy. By their estimates, the sector contributes nearly ₹20,000 crore annually to the exchequer through taxes and compliance payments, while directly and indirectly employing more than two lakh people. A blanket ban, they argue, would wipe out this entire ecosystem overnight.

The strongest criticism has come from the government’s failure to control illegal offshore betting firms. Companies like Parimatch, 1xBet and Dafabet continue to operate in India, despite repeated reports of their involvement in money laundering, hawala transactions and illegal gambling.

“Instead of cracking down on these notorious offshore firms, the government is choosing to penalize Indian companies that follow rules, pay taxes, and create jobs. This flawed approach not only risks shutting down a legitimate industry but also allows the black market to thrive unchecked,” said an industry representative.

Industry insiders caution that if the bill becomes law, Indian users may simply shift to unregulated foreign platforms, further draining revenue away from the country and undermining consumer protections.

The government, however, has defended its proposal by highlighting the social costs of online money gaming. The draft note accompanying the bill points to the “immersive and addictive nature” of pay-to-play platforms, warning that monetary incentives have triggered rising cases of anxiety, depression and behavioural problems among young users.

Citing clinical studies, the note claims prolonged gaming has worsened mental health issues, particularly among children and adolescents. The draft further warns of financial risks, with many players suffering losses that have, in some cases, led to suicides.

“These platforms employ predatory tactics—loot boxes, microtransactions, and reward systems—that exploit psychological triggers to encourage overspending. Such practices create cycles of debt and vulnerability,” the note says.

Despite acknowledging concerns about addiction and financial harm, industry groups insist that prohibition is the wrong path. They argue that a balanced regulatory framework—similar to models adopted in advanced markets—would provide consumer safeguards without dismantling the sector.

“Banning regulated RMG firms while letting offshore betting companies operate unchecked will only worsen the problem. The government should be working with us to build safeguards, not pushing us out,” said a gaming association leader.

The post Indian Gaming Industry Expresses Concern About Proposed Online Gaming Bill appeared first on European Gaming Industry News.

Continue Reading

Trending