A method of transmitting multicast traffic to workloads of tenants communicating over overlay networks provisioned on top of a physical network includes the steps of: detecting the multicast traffic; determining that the multicast traffic is bound for workloads of a first tenant and workloads of a second tenant; encapsulating one instance of the multicast traffic using a Layer 2 (L2) over Layer 3 (L3) encapsulation protocol to generate encapsulated traffic, wherein the encapsulated traffic includes an identifier of a first backplane network corresponding to the first tenant and an identifier of a second backplane network corresponding to the second tenant in a header portion of each packet of the encapsulated traffic; and transmitting, to a first host computing device, the encapsulated traffic with the identifiers of the first and second overlay networks.