Esports in India – Growth, Regulation and New Online Gaming Rules

Esports in India Latest News

• The Government of India has notified new online gaming rules, introducing a regulatory framework and mandatory registration for esports platforms.

Esports in India: Concept and Growth

• Esports refers to competitive video gaming where individuals or teams compete in organised tournaments, often for prize money and professional recognition. 
• It is distinct from casual gaming due to its structured format, professional players, and spectator base.
• The esports industry in India has witnessed rapid growth over the past decade. With increasing smartphone penetration, affordable internet, and a young population, India has emerged as a key market. 
• The industry is estimated to be worth over $1-1.5 billion, with strong growth projections driven by streaming, sponsorships, and tournament ecosystems.
• India has also seen the rise of professional esports athletes, gaming organisations, and large-scale tournaments. Platforms such as mobile gaming have significantly contributed to this expansion.

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Types of Esports and Gaming Ecosystem

• First, mobile esports dominate the Indian market due to accessibility. Games like battle royale and multiplayer strategy formats fall under this category.
• Second, PC and console esports, which are more prevalent in global tournaments and require higher infrastructure.
• Third, team-based competitive gaming, where structured leagues and franchises operate.
• The ecosystem includes players, teams, tournament organisers, streaming platforms, sponsors, and audiences. 
• Revenue streams include advertising, media rights, in-game purchases, and sponsorship deals.

Government Regulations and Policy Framework

• Esports has been recognised as part of multi-sports events under the Ministry of Youth Affairs and Sports, distinguishing it from gambling or betting activities.
• The Promotion and Regulation of Online Gaming Act, 2025, forms the basis of the current regulatory framework. It aims to balance innovation with user protection.
• Key regulatory focus areas include:
  • Ensuring user safety and preventing addiction. 
  • Regulating financial transactions in gaming platforms. 
  • Preventing illegal betting and gambling activities. 
• The government has adopted a light-touch regulatory approach, especially for non-risk gaming categories, to encourage industry growth while maintaining oversight.

News Summary

• The government has notified administrative rules under the Online Gaming Act to regulate the online gaming sector.
• A key feature is the creation of the Online Gaming Authority of India (OGAI), a six-member body under the Ministry of Electronics and Information Technology. It includes representatives from multiple ministries, ensuring inter-sectoral oversight. 
• The authority will function as the central regulator and will oversee compliance, safety standards, and grievance redressal mechanisms. 

Key Provisions and Compliance Requirements

• The rules mandate gaming companies to implement operational and behavioural safeguards to protect users from financial and psychological harm. 
• A significant provision is that registration for esports platforms is mandatory, while other online games may not require registration unless identified as high-risk. 
• Gaming companies must also establish grievance redressal systems, allowing users to escalate complaints to the regulator if unresolved within a specified time. 
• Banks and financial institutions are required to verify whether gaming platforms are legally permitted before enabling transactions. They must restrict services to non-compliant entities. 

Approach to Regulation and Emerging Challenges

• The government has emphasised a regulation-light approach, allowing most non-risk games to operate freely without mandatory registration. 
• At the same time, provisions have been included to introduce age classification systems and codes of practice in the future to address issues such as gaming addiction. 
• Illegal betting platforms and offshore gaming sites continue to pose challenges. Authorities have acknowledged difficulties in regulating such platforms, especially when accessed through VPNs.

Source: TH | BW