A new online gaming law has been implemented in India, targeting online real money games where players wager actual currency. The government introduced the Online Gaming Bill 2025 to curb these games. The primary focus is now on promoting esports, a move expected to significantly impact India’s gaming ecosystem, IT industry, and publicly listed companies.
**Distinction between Esports and Money Games**
Esports represent a realm of skill and strategy, where players triumph through their mental prowess and reflexes. Whether it’s the battlegrounds of BGMI, the shootouts in Valorant, the football fields of FIFA, or the digital warfields of Clash Royale and Dota, success hinges on performance. Esports feature leagues, tournaments, and substantial prize money, with players recognized as true “sports stars.”
In contrast, money games involve players staking real money, and the outcome relies not just on skill but also on luck. Whether selecting teams on Dream11, sitting at a RummyCircle or Poker table, or playing Teen Patti cash games, fortune often plays a bigger role than skill in securing a win.
**Government’s New Strategy**
* Esports will now be categorized as sports, not gambling/betting.
* The government is preparing to establish a National Authority to determine:
* Which games are legal and which are prohibited.
* Registration of all games will be mandatory.
* Esports tournaments will be encouraged.
* Emphasis on developing domestic Indian games, similar to PUBG.
* Promotion of esports versions of traditional sports like cricket, football, and chess.
This presents opportunities for Indian game developers. Esports players will receive prize money and international exposure. The IT and startup sectors will gain new direction, enabling India to secure a position in the global esports market.
**Challenges**
The ban on money games will disrupt the business models of several companies, leading to potential job losses, as fantasy and rummy apps employed a large number of people. Furthermore, the government will need to maintain a clear distinction between esports and gambling-like games.
**How the Government will Promote E-Gaming**
Following the passage of the new gaming bill, the government will focus on esports by issuing new guidelines. The government will promote esports in India by taking similar crucial steps.
