The government's acceptance of e-sports and social games has brought cheers to the entities operating in the space, with companies hoping for a major push as the government's promises of necessary recognition to promote the gaming segment as a competitive sport.

The Promotion and Regulation of Online Games Bill, 2025, aims to recognise e-sports with a legal authority or agency, to form guidelines and SoPs (standards for the organisation) for them. This will lead to official legitimacy for the thriving sector, which attracts a lot of young people who play video videos games as a sport. 

The government will issue guidelines and open training academies, research centres and other institutions for the advancement of e-sports. To establish India as a major e-sports hub, the government also intends to roll out incentive schemes, awareness campaigns and public outreach programmes, which could lead to innovation and the establishment of new enterprises to create e-sport technology platforms.

By enabling better coordination with state governments and recognised sporting federations within broader sporting policy initiatives, the government has all the plans to take e-sports mainstream. This means soon, e-sports will be recognised as mainstream sport such as cricket or football, with federations and governments involved in their promotion and management.

What is e-Sports?

1. “E-sport” means an online game played as part of multi-sport events and involves organised competitive events between individuals or teams.

2. Outcomes of e-sports are determined solely by players’ skills such as physical dexterity, mental agility, or strategic thinking.

3. Participation may involve entry fees and performance-based prizes, but no bets, wagers, or gambling are allowed.

"India has taken a welcome step for the promotion of casual video gaming and e-sports by giving the industry clarity between sport and real money gaming. This distinction gives players, teams, and investors the confidence to plan long-term, and it should accelerate the growth of tournaments, training centres, and high-skill jobs across tech, content, and production," says Rajan Navani, Founder & CEO, JetSynthesys, one of the biggest e-sports, video gaming and entertainment companies in India. 

At present, the online gaming sector ecosystem has multiple segments. Apart from e-sports, the government wants to also promote online social games, including casual games and educational games. Talking about these two segments, Union Information & Broadcasting Minister Ashwini Vaishnaw said in the e-sports segment, an individual's "strategic thinking increases", and they learn to coordinate in a team and do cultural exchange. "And in the world, e-sports is being promoted in a new way," he said in the Lok Sabha while tabling the bill, adding that the second segment is online social games like Solitaire, Chess or Sudoku, which are useful for learning, entertainment, increasing memory, and are ideally available.

"With real-money gaming facing restrictions, both players and investors are actively looking for sustainable and legitimate avenues, and e-sports is emerging as the natural choice," says Shiva Nandy, founder & CEO, Skyesports, which operates in the area of competitive gaming and content and works with global publishers, governments, and brands.

So far, e-sports in India operate without a dedicated institutional mechanism for strategic support, coordination and capacity building. The absence of a proper legal framework has adversely impacted the sector’s growth and necessary infrastructure.

The e-sports industry players also feel that for the government's vision to truly materialise, it is critical that the terminology used in the bill, particularly the distinctions between e-sports, online gaming, online social gaming, and online money gaming, be clearly defined and uniformly understood. "The absence of precise definitions has often led to ambiguity and conflation around the term "e-sports". Such overlaps can create confusion not just for regulators, but also for players, teams, investors, and organisers who are working hard to build this industry," Akshat Rathee, Co-founder and MD of NODWIN Gaming, tells Fortune India.

This will lead to a strong regulatory foundation, which will attract investor confidence, ensure long-term stability, and sustainable growth. "It will allow every stakeholder, from athletes and teams to platforms and video game publishers, to operate with clarity and confidence," says Rathi.

E-sports clubs, which have emerged as a strong career option for those into competitive online gaming, also call the new bill a "historic turning point" for the Indian e-sports industry. "E-sports is a sport- built on skill, discipline and years of grind. With government recognition and the right infrastructure, India is now poised to become a global powerhouse in e-sports and gaming culture," Animesh Agarwal, Co-founder and CEO, S8UL, says.

Meanwhile, the Esports Players Welfare Association (EPWA), a pan-India body representing gamers like e-sports athletes, chess professionals and more, has said the current bill, if enacted "without distinction", will impact not just competitive players but the entire ecosystem: shoutcasters, coaches, analysts, designers, streamers, video editors, community managers, developers, and others whose work revolves around gaming. "The blanket ban proposed under the new Online Gaming Bill raises serious concerns for our community and the future of Indian skill-based gaming," the association said.

The Road Ahead

Looking ahead, the Bill positions India to emerge as a global hub for responsible digital gaming. "Its long-term success will depend on effective enforcement, collaboration with stakeholders, and adaptive updates to match emerging technologies, including VR/AR gaming, metaverse applications, and international e-sports," Ananay Jain, Partner, Grant Thornton Bharat tells Fortune India.

Once the new bill becomes a law, stakeholders say, the focus should be on developing proper infrastructure for e-sports in India. Agarwal of S8UL says there's an urgent need to develop more bootcamps, education programs, and scholarships to nurture the next generation of talent. JetSynthesys' Navani agrees that with uniform, simple guidelines that are easy to follow, India can position itself as a top-tier e-sports market and a global exporter of talent.

With e-sports all set to get a big government boost, the big question is how much this segment can contribute to the overall growth of India's gaming industry.