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BUSINESS & TRADE SEPTEMBER 26, 2025 | The Indian Eye 36

INDIA BETS BIG ON ONLINE

GAMING REGULATION

With new rules set to take effect on October 1, the government takes a consultative

approach to regulate a booming sector worth billions

tional tie-ups.”
OUR BUREAU
Already, India has hosted major
Mumbai / New Delhi e-sports events with prize pools run-
ning into crores. Global giants like
rom small-town teenagers com- Tencent, Krafton, and Sony are active-
peting in e-sports tournaments
Fto professionals streaming their ly investing in the Indian market, while
homegrown companies such as Nazara
gameplay on YouTube and Twitch, Technologies and Dream11 have es-
India’s gaming industry has become tablished themselves as key players.
one of the fastest-growing segments
of the digital economy. Now, the CHALLENGES AHEAD
Union government is stepping in with
a regulatory framework that seeks to et, the government’s balancing
nurture the industry while cracking act will not be easy. Concerns
down on harmful practices. Yabout gambling-like behav-
Union Information and Technol- ior, addiction, and financial fraud
ogy Minister Ashwini Vaishnaw con- have long plagued the sector. Mul-
firmed that the new rules governing tiple state governments had earlier
online gaming will come into effect attempted to impose outright bans
from October 1, 2025, following mul- on online rummy and fantasy sports,
tiple rounds of consultations with Union Information and Broadcasting Minister Ashwini Vaishnaw addresses during the launch leading to legal battles. The new na-
gaming companies, financial institu- tional framework attempts to provide
tions, and other stakeholders. “We of the ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth’ and the Frontier clarity, but industry players remain
engaged with practically every stake- Tech Repository by NITI Aayog in New Delhi (Ishant chauhan/ANI Photo) cautious.
holder possible in this, and we have “There is a fine line between
finalised the rules,” Vaishnaw said, and streamers. Moreover, tourna- games of skill and games of chance,
speaking at a pre-event ceremony A MARKET READY TO and regulators worldwide have strug-
of the AI Impact Summit 2026. He EXPLODE ments are attracting sponsorships gled with this distinction,” said a
from major consumer brands, signal-
emphasised that the government’s ing gaming’s arrival as a mainstream policy analyst. “India’s consultative
approach will remain “very consulta- he government’s move comes business opportunity. approach is encouraging, but much
tive,” and more discussions may fol- at a time when the online gam- will depend on how enforcement is
low even after implementation. Ting industry in India is witness- THE E-SPORTS OPPORTUNITY carried out.”
The rules stem from The Pro- ing explosive growth. According to a Banks and payment companies
motion and Regulation of Online report by KPMG, the industry was he recognition of e-sports un- will also need to adapt. By prohibit-
Gaming Bill, 2025, which received valued at around USD 2.6 billion in der the new law is seen as a ing financial services linked to online
presidential assent in August after 2022 and is projected to reach USD Twatershed moment. For years, money games, the law places respon-
being passed by Parliament. The 8.6 billion by 2027, growing at a com- professional gamers and tournament sibility on financial intermediaries to
legislation has a dual objective: to pound annual growth rate (CAGR) organisers have lobbied for legitima- track and block transactions.
promote e-sports and online social of more than 27%. cy, arguing that competitive gaming
games while prohibiting harmful India now has over 500 million is closer to sports than to gambling. A TURNING POINT
money-gaming services that often gamers, making it one of the largest With official backing, e-sports could
lure young users into debt traps. gaming markets in the world. While soon join cricket and football as a espite the challenges, industry
Under the Act, “online money casual mobile gaming dominates, magnet for advertisers and broad- watchers agree that the Octo-
games” played for stakes are prohib- e-sports and fantasy sports are fast casters. Dber 1 rollout marks a turn-
ited nationwide. Service providers, gaining traction. Industry trackers “India’s young demographic is ing point. With the right balance of
advertisers, and promoters face strict note that India is expected to ac- highly engaged with competitive regulation and support, India could
penalties, though individuals who count for nearly 20% of global gam- gaming, and we’re seeing increasing emerge as a global hub for gaming
play such games will not be criminal- ing users by the end of the decade. participation from Tier-II and Ti- and e-sports, much as it has for IT
ised. The law also blocks related finan- The sector’s importance goes er-III cities,” said an industry execu- services and digital payments.
cial transactions and advertisements. beyond entertainment. A 2023 tive with a leading gaming platform. For now, all eyes are on how
At the same time, the Bill provides EY-FICCI report estimated that “With legal recognition, the ecosys- the rules will be implemented—and
legal recognition to e-sports, a move gaming contributes significantly to tem will become more structured, whether India’s half-billion gamers
expected to give the sector new legit- India’s digital economy, creating jobs opening up opportunities for spon- will find the ecosystem safer, fairer,
imacy and attract fresh investment. for developers, animators, designers, sorships, leagues, and even interna- and more rewarding.

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