Esports gets independent identity as India passes new gaming bill
The Promotion and Regulation of Online Gaming Bill, 2025 marks a major shift in India’s esports landscape. Esports and social gaming gain formal recognition and support under the new framework, while real-money gaming (RMG) platforms face restrictions. The bill, passed in both houses and awaiting presidential assent, sets the stage for structured growth in skill-based gaming.
The immediate impact was visible in the stock market; shares of gaming companies dropped after the Cabinet approved the bill. Nazara Technologies fell nearly 18.25 percent in early trading, and Delta Corp also saw losses before a partial recovery later in the session.
Understanding the Online Gaming Bill 2025
The new legislation categorises online games into four types: esports, social games, educational games, and online money games. Esports are defined as competitive video games played in tournaments, such as PUBG, FIFA, and Valorant. The government aims to promote this category as a skill-based activity with career potential.
Social games encompass casual entertainment played with others, such as Ludo King, Candy Crush, and online chess. These will continue under stricter rules focused on user safety, age restrictions, and data protection.
Educational games, such as math quizzes, coding platforms for children, and language learning apps, are supported for their learning value. Online money games, where users deposit money to compete for cash rewards, are banned due to concerns over addiction and social harm.
Indian Prime Minister Narendra Modi has hailed the passage of bill, as a game-changing moment for India’s digital future. In a post on X, Modi said the legislation will fuel creativity and competitive gaming, while also protecting society from the risks of online money games like addiction and fraud.
This Bill, passed by both Houses of Parliament, highlights our commitment towards making India a hub for gaming, innovation and creativity. It will encourage e-sports and online social games. At the same time, it will save our society from the harmful effects of online money… https://t.co/t1iUuH9JP1
— Narendra Modi (@narendramodi) August 21, 2025
Esports gains independent identity
Until now, esports was often grouped with gambling, limiting its recognition. The new bill changes that by giving esports a separate identity based on skill and competition, not chance. This shift brings structure, investment, and legitimacy to the sector. Esports in India has grown quickly, with games like BGMI, Valorant, FIFA, and DOTA 2 leading the competitive scene. Its inclusion as a medal event at the Asian Games 2022 marked a major milestone.
A key feature of the Online Gaming Bill is the formal recognition of esports as a sport under the National Sports Governance Act, 2025. This means esports will now be treated on par with traditional sports like cricket and football. The law also enables the government to set clear rules and standards for tournaments and ensures consistent regulations across states, replacing the previously fragmented approach.
“The government’s intent to promote esports is an encouraging step that will make India more structured and globally competitive.”
-Akshat Rathee, Co-founder and MD of NODWIN Gaming
Immediate industry shutdowns
The legislation has had a direct impact on real money gaming platforms. Dream11, a major fantasy sports app, paused all paid contests, though users were informed that their account balances remain available for withdrawal.
For Dream Sports, the parent business of Dream11, which formerly derived more than 90 percent of its income from money-based competitions, this presents a significant obstacle. Due in large part to the high level of interaction during the men’s cricket World Cup, Dream11 earned over $1.10 billion in revenue in FY24. The company must now shift focus to other ventures such as FanCode (sports media), DreamSetGo (travel), and Dream Game Studios (game development).
Other platforms, including Games24x7, Winzo, GamesKraft, 99Games, KheloFantasy, and My11Circle, are also facing serious uncertainty, with industry observers calling it an “existential crisis.”
Parth Chadha, CEO & Co-Founder of STAN, welcomes the government’s decision to formally recognise and support social gaming and esports as distinct from real money gaming. At the same time, Chadha also recognises the difficulties this presents for the RMG industry, which has been crucial in expanding the gaming sector and creating jobs.
Chadha shared, “It’s also a tough day for our friends in the RMG industry. Many have built incredible businesses against the odds, created jobs, and brought gaming to millions. Their contributions shouldn’t be overlooked even as the industry transitions.”
Industry reacts to the seismic shift
The gaming industry’s response reflects both optimism about the future of esports and concern for displaced workers and businesses.
Dhiman Kashyap, Co-founder and CEO of Resilience Esports, highlights the transformative impact of regulatory clarity on India’s esports ecosystem. By formalising the industry through the recent gaming bill, the government is creating a fertile ground for investment and innovation. This move not only legitimises esports as a viable career path but also opens up structured opportunities for young talent to thrive.
Dhiman Kashyap told to SiGMA News, “With the recent gaming bill, India’s esports industry is set for exponential growth. Clear regulations will encourage investments, generate employment, and offer young talent structured platforms to showcase their skills. This marks a new era for India as it positions itself strongly on the global esports map.”
Shiva Nandy, Founder and CEO of Skyesports, highlights the growing maturity of India’s esports landscape, particularly in light of recent legislative developments. The formal recognition of esports through the new Gaming Bill marks a landmark moment, signalling the government’s intent to distinguish it from gambling and other online money games.
Nandy stated,“The new gaming bill follows a series of steps by the Indian government to legitimise esports, and its formal acknowledgement through legislation marks a watershed moment for our industry. With the ban on online money games, players and investors will actively seek credible alternatives and esports is emerging as the natural, leading choice, now further validated by government support.”
Akshat Rathee, Co-founder and MD of NODWIN Gaming, supports the government’s move to boost esports, observing its potential to bring structure and global competitiveness to India’s gaming industry.
Rathee noted, “The government’s intent to promote esports is an encouraging step that will make India more structured and globally competitive. However, for this to truly work, the terms mentioned, such as esports, online social gaming, and online money gaming, need to be well-defined. With that foundation, players, teams, investors, and organisers can build with confidence, knowing the industry has long-term stability.”
Rohit N Jagasia, Founder & CEO of Revenant Esports, highlights that the bill not only brings long-needed clarity but also formally recognises esports as a legitimate competitive sport. Previously, inconsistent state-level laws created confusion and hindered growth.
Jagasia shared, “With the passing of the Promotion and Regulation of Online Gaming Bill, 2025, the gaming industry stands at a true inflexion point. This bill was long overdue and is a welcome step toward providing much-needed clarity. For the first time, the law formally recognises esports as a competitive sport, while also ensuring much-needed uniformity in regulations across states.”
Gaming influencer Tanmay Singh, popularly known as ‘ScoutOP’ and brand ambassador of Revenant XSpark, celebrated the skill-based recognition. He applauds the government’s move to officially recognise esports as a competitive sport, affirming its skill-based nature. He sees the bill’s clear separation of esports from social and chance-based money games as essential for protecting and promoting the growth of legitimate competitive gaming.
Singh emphasises, “The government has officially recognised esports as a competitive sport. Competitive gaming has always been a skill-based endeavour, and it is encouraging to see it finally receive its due. This bill’s effort to clearly distinguish between esports, social gaming, and chance-based money games is a crucial step toward safeguarding and nurturing the growth of skill-based gaming. With the right balance, this legislation has the potential to position India as a global esports powerhouse.”
Key impacts on India’s esports growth
Jagasia notes that government recognition signifies development, with the bill explicitly distinguishing esports from RMG while establishing a regulatory framework for promotion. This distinction is especially relevant as esports prepares for its Olympic debut in 2027. With a national policy now in place, stakeholders have a consistent structure to work within.
Jagasia explained, “Until now, the absence of a national framework had led to fragmented state-level laws and confusion. With a clear framework now in place, we can expect it to fuel healthy competition, spur innovation, and attract investments that will strengthen and accelerate the growth of the entire gaming ecosystem.”
According to reports, this bill is expected to create a $174 million esports growth opportunity, driven by government incentives, FDI inflows, and a projected 147.9 million users by 2029. Market Shift dynamics suggest that as fantasy sports and RMG platforms shut down or pivot their offerings, esports and casual gaming will likely fill the entertainment void, driving increased demand for competitive and non-cash games.
The success of this transition will largely depend on how effectively the government implements its esports promotion initiatives and how quickly displaced talent and capital can pivot to the newly legitimised sectors.
