Industry Applauds India's New Online Gaming Legislation

India’s cabinet has approved the Promotion and Regulation of Online Gaming Bill 2025, a sweeping piece of legislation aimed at banning all online games with monetary stakes, regardless of whether they rely on skill, chance, or both. The government cited addiction-related health concerns, suicides linked to financial losses, and national security threats as reasons for introducing the bill.

If passed, the bill would effectively shut down major operators in India’s $3.3 billion online gaming sector, with punishments of up to three years imprisonment and fines of INR 1 Crore ($114.8 thousand) for violators. Banks facilitating transactions for such games would also face identical penalties, while advertising violations could lead to two years in prison.

However, the legislation makes a key exception for esports and non-monetized social games, with the government explicitly recognizing competitive gaming as a sport and announcing plans to promote digital gaming through infrastructure, regulation, and content creation. The introduction of this bill has drawn strong reactions from leaders across India’s gaming and esports ecosystem.

Esports Stakeholders Welcome Recognition but Call for Clarity

NODWIN Gaming

For Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, the bill represents an important landmark for esports, but one that still requires finer detail. He said, “The government’s intent to recognize and promote esports, as highlighted in the recent bill, is an encouraging step towards building a structured and globally competitive ecosystem. However, for this vision to truly materialize, it is critical that the terminology used in the bill, particularly the distinctions between esports, online gaming, online social gaming, and online money gaming be clearly defined and uniformly understood.”

Rathee emphasized that blurred definitions often create confusion not only for regulators, but also for players, teams, investors, and organizers. “Clear and consistent definitions will create a strong regulatory foundation that ensures investor confidence, long-term stability, and sustainable growth … This alignment between government intent and regulatory clarity will ensure that India doesn’t just participate in the global esports movement, but establishes itself as one of its leading powerhouses,” he added.

S8UL’s Statement

Esports organization S8UL views the bill as a transformative moment for the industry. Animesh “Thug” Agarwal, Co-founder and CEO, described it as a “historic turning point” by saying, “By drawing a clear line between skill-based competitive gaming and betting, it safeguards the integrity of our ecosystem while opening doors for structured growth. Esports is a sport — built on skill, discipline, and years of grind.”

Agarwal noted that the next step must focus on infrastructure-building, stressing the need for arenas, bootcamps, education programs, and scholarships to nurture emerging talent both as competitors and creators in gaming culture.

Game Development Companies See Opportunities

Dot9 Games’ Statement

Deepak Ail, Co-Founder and CEO of Dot9 Games (creators of FAU-G: Domination), highlighted the cultural significance of the bill’s direction. He said, “The government’s decision to provide a strong framework for gaming allows us to nurture original IP that represent and reflect our culture. Just like Indian movies act as cultural soft power, Indian games too can rise to that level. We’re all too happy to be a part of this mission to put India on the global gaming map.”

Aftermath Ventures’ Statement

For Aftermath Ventures, an esports and events company, the bill helps legitimize esports as a profession. CEO and Co-Founder Mansoor “Nabu” Ahmed said, “The focus on esports is welcome as it brings legitimacy to the craft. We applaud this move as it lets players focus on what they do best — performing. While it allows organisations like us to grow and build the next billion gamers.”

Ginger Games’ Statement

Ginger Games, a hypercasual games startup incubated under Krafton India, sees the decision as a relief for developers dealing with identity issues in the market. CEO and Co-Founder Sumit Batheja stated, “We applaud this decision as it allows us to focus on the ongoing concerns as a business — monetisation, retention, and most importantly, building great IP for India and the world, rather than having to explain to our audiences what we are to begin with.”

nCore Games’ Statement

Vishal Gondal, Co-Founder of Ncore Games, strongly backed the government’s prohibition of real money gaming, positioning it as a measure that both protects youth and encourages innovation. He said, “I welcome the Govt’s decision to prohibit Real Money Gaming & establish a strong regulatory framework. Too many young lives were being lost to addiction & debt. This decisive step safeguards our youth while unlocking the future of Indian gaming — driven by original IP, creativity & Make in India games.”

Gondal added that this was an opportunity for the country to become a true global gaming superpower.

While the Promotion and Regulation of Online Gaming Bill 2025 could potentially wipe out major players in the real money gaming sector, it has also provided clarity and recognition to esports and social gaming. Industry leaders believe that this distinction, paired with government-backed infrastructure initiatives, could foster long-term stability and global competitiveness.

By taking strong action against betting-linked gaming while supporting esports and original IP creation, India is charting a new path forward for its gaming ecosystem. If the bill passes in Parliament this week, the gaming landscape in India could undergo its most significant transformation yet.  in an era where esports is treated as a legitimate sport and locally-built games gain global recognition.