Aug 22: Russia's shadow fleets, economics of airport lounges

Good morning! Every generation has its vice. Boomers had cigarettes, Millennials had overpriced avocado toast, and GenZ? Fridge cigarettes! If you haven't heard of this, please stop living under a rock. Fridge cigarettes are chilled Diet Cokes - equivalent of ‘lighting one up’, minus the nicotine or the avocados but the same emotional coping mechanism. GenZ’s here, just popping up a can, staring into the fridge light and call it therapy when they’re stressed out. Some call it caffeine addiction, some call it aesthetic self-care. Potato, potahto. Jury’s out on what Gen Alpha’s thinking.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian stock market rose for the sixth straight day, with the Sensex gaining 143 points and the Nifty50 gaining 33 points. Heavyweight shares like ICICI Bank and Reliance Industries led the gains, but global concerns limited the rise.

Still reeling: The spotlight remains firmly on the shocker of the season: the Online Gaming Bill. As companies struggle to digest the long-debated legislation having finally been turned into reality, industry leaders aren’t backing down without a fight.

Courts on the horizon: Legal challenges are quickly emerging as the next step. Executives point to past rulings favoring skill-based gaming and the Constitution’s guarantee of the right to trade and occupation. Industry insiders believe the Promotion and Regulation of Online Gaming Bill, 2025 could be challenged on similar grounds once enacted. The bill lumps skill-based and chance-based real-money games into a single regulatory net, threatening the existence of operators who had so far survived scrutiny by arguing “skill” over “luck.”

Nazara Tech catches the nazar 🧿: Nazara Technologies has already sounded the alarm. Its ₹800+ crore investment in PokerBaazi (where it holds a 46% stake) could face a write-off if the bill passes. Shares of Nazara dropped to ₹1,193 on Thursday, despite the company recently posting over 100% profit growth in Q1 FY26 and continuing its acquisition spree in gaming IPs.

Firms run for cover: The industry mood is summed up in two words: damage control. Companies are weighing legal action, lobbying for a 3–5 month transition period, and exploring pivots to subscription or ad-based models. Gamers are rushing to withdraw balances, forcing firms to examine their reserves to prevent a potential “bank run.” Some companies admit they lack the cash cushion to handle the sudden outflow. Online forums are full of “workarounds,” from VPN access to informal cash play, raising concerns that the law could fuel black-market activity.

Influencers left wide eyed: The fallout extends beyond firms and players. Gaming influencers, many of whom carved out careers by creating fantasy “dream teams,” now face a severe livelihood threat. With brand deals, hefty followings, and earnings in lakhs, their futures look uncertain.

Ad freeze hits big names: The industry spends nearly $2 billion (₹17,000+ crore) annually on advertising and marketing, mostly during cricket tournaments like the IPL or ICC events. That spend could halt overnight. Talent managers for Bollywood stars and cricketers associated with these platforms have already asked media buyers to scale down or pull ads altogether, wary of penalties and stricter oversight.

Who are we talking about: This cloud hangs over marquee endorsements and sponsorships. Dream11’s three-year partnership with the BCCI faces scrutiny, while celebrity faces of the industry—from Ranbir Kapoor and Aamir Khan (Dream11) to MS Dhoni (WinZo), Hrithik Roshan (RummyCircle), Shubman Gill and Sourav Ganguly (My11Circle)—may be forced to step back.

Existential Moment: For India’s real-money gaming industry, this is more than just another regulatory hurdle—it’s an existential moment. With courts, investors, advertisers, influencers, and gamers all caught in the crossfire, the coming weeks could decide whether this sector adapts, collapses, or goes underground.

Illusion of free comfort: Airport lounges in India may seem like havens of luxury, with free snacks, Wi-Fi, charging stations, and even spa treatments—but nothing is truly free. Banks and card networks quietly foot the bill, paying ₹600–₹1,200 per domestic visit and $25–$35 for international ones when travellers use “complimentary lounge access.” For banks, this is not generosity but strategy, a loyalty perk designed to keep customers hooked, boost swipe volumes, and nudge them towards premium cards.

A profitable partnership: For lounge operators, the business model is equally attractive. Partnering with banks ensures steady footfalls and predictable revenue. Tie-ups with airports and catering vendors help keep overheads low, and a smaller share of travellers still pay directly for day passes, giving operators an extra revenue stream. The result: a surprisingly solid business model that thrives on scale.

Downside of demand: Overcrowding is now common at major airports. Rising costs have led banks to cap complimentary visits, restrict guest access, or limit perks to premium cards. Some even suspend lounge benefits for customers who don’t use their cards actively, a subtle push to keep transactions flowing. Still, the scale of this ecosystem is staggering. Lakhs of passengers pass through lounges each month, with banks collectively spending crores to keep them comfortable.

Battle for the comfort economy: Lounges have become the new battleground in the fight for customer loyalty. Recently, DreamFolks promoter Liberatha Peter Kallat accused two major airport operators of pressuring banks into exclusive lounge tie-ups. Within hours, Adani Airports CEO Arun Bansal countered with a LinkedIn post, touting his group’s digital innovations that allow passengers direct lounge access without intermediaries. The spat highlights the big money at stake, with banks, aggregators, and airport operators all jockeying for control over the lucrative “comfort economy.”

Yakult’s probiotic push: Japanese probiotic drink, Yakult, aims for India to be its top 10 market, banking on double-digit growth until 2030, driven by a growing middle class. The company is expanding to nearly 700 cities with new flavours like mango and low-sugar variants.

Global tariff hits Indian firms: Indian firms experience Asia's largest earnings downgrades due to US tariff risks. Despite domestic tax cuts, earnings forecasts for large and mid-cap firms have declined by 1.2% over the past two weeks, with the textile sector being the most impacted.

Airlines under loss: Air India and Air India Express posted a combined pre-tax loss of ₹9,568.4 crore in FY25. IndiGo was the only major Indian airline to report a profit, with ₹7,587.5 crore before tax in FY25.

Smartphone export surge: India's smartphone exports to the US surged to a 44% share in Q2 2025, surpassing China, i.e at 25%. This growth is driven by government initiatives, such as "Make in India" and the Production-Linked Incentive (PLI) scheme.