Game changer: Esports-carve out in Online Gaming Act to boost talent and structured growth

Esports

Esports in India is set for its next big leap, say players and platforms as the Online Gaming Act separates esports from online real-money gaming, the sector now has a clearer framework for structured growth.

This move not only removes the long-standing confusion between competitive esports and betting-led gaming, but also opens doors for fresh talent, higher investments, and stronger recognition of esports as a mainstream sporting discipline, top esports players noted.

Turning point

"What stands out in this (Online Gaming) Act is the clear separation of esports from real money gaming. For creators, that distinction is critical because it removes a major misconception about gaming in India. It tells parents and audiences that what we do is about skill and competition, not chance. That recognition makes it easier for new talent to come forward without stigma and for creators like us to build responsibly in this space," Naman Mathur aka Mortal of S8UL Esports, said.

As players, we have always known the grind behind esports, long hours of practice, teamwork, and constant learning, said Harsh Paudwal, a BGMI (Battlegrounds Mobile India) athlete. "With the government investing in training and structured events, the upcoming generation of athletes will have a much clearer pathway to pursue esports professionally. It’s the kind of support that can really take Indian players to the global stage."

IT minister Ashwini Vaishnaw also noted that the government will be bringing in schemes to support esports games.

This bill marks a historic turning point for Indian esports, said Animesh Agarwal, Co-founder, S8UL Esports. "With government recognition and the right infrastructure, India has the potential to become a global powerhouse in esports and gaming culture."

The focus must now be on developing infrastructure such as arenas, bootcamps, education programs, and scholarships to nurture the next generation of talent, whether competing on the world stage or shaping culture as gaming creators, he added.

Traction for esports

Last year, esports and casual games together continued their steady double-digit growth that the segment has been seeing over the past few years with a revenue of Rs 5,300 crore for esports and casual games, up from Rs 4,600 crore in 2023, according to the 2025 EY-FICCI report.

However, the number of live and other broadcast hours reached 7,400 across 15 platforms. While game streaming saw a boost with the return of BGMI, it faced challenges from the end of FIFA’s partnership with EA Sports and rising operational costs. These factors collectively limited growth, resulting in a muted 5 percent increase in the segment’s overall revenue.

In addition, while the portfolio of games remained largely unchanged from the previous year, with no new titles achieving significant breakout success; participation in tournaments crossed two million for the first time, and the number of professional esports teams reached 36.

Esports is also gaining increased traction in non-metro cities, driven by India’s status as a mobile-first gaming nation. Building on this momentum, JetSynthesys launched the global e-Cricket Premier League late last year.

Nodwin of which Nazara Technologies is the largest shareholder, made the Esports World Cup held this year more relevant for the Indian audience by making Indian esports players compete in games like BGMI and chess which have high traction in the country.

"The government’s intent to promote esports is an encouraging step that will make India more structured and globally competitive," said Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming.

Some of the players have highlighted how income from esports is lucrative. The starting salary of amateurs is around Rs 50,000 per month while a pro player's income can go up to Rs 2-3 lakh per month. And the income gets a significant boost if social media earnings are included.

Skilled esports players, especially those competing internationally or as part of professional teams, can earn anything between Rs 15 lakh and Rs 30 lakh per year

Brand deals can add another Rs 1-2 lakh to an esports player's income who has a following of 100,000. An athlete with a 500,000 following on social media can earn as high as Rs 5 lakh per brand deal.

Guardrails for games

The Online Gaming Act which separates esports from betting/real-money play and proposes a regulatory framework for the former not only improves legitimacy for teams, leagues, and publishers, but also unlocks cleaner sponsorship pipelines, and de-risks brand associations, said Rohit Agarwal, Founder & Director, Alpha Zegus.

While the Act bans online games, it will regulate esports. Agarwal pointed out how esports is regulated in some of the international markets.

"South Korea legislates esports promotion and integrity via dedicated acts and 5-year plans. Germany issues a special esports residence/visa for players and coaches (from 2020). China formally recognized ‘esports player’ and ‘esports operator’ as professions in 2019, later building standards and inclusion in national plans. The U.S. uses the P-1A athlete visa pathway for elite esports competitors. These examples show regulation that professionalizes the space rather than restricting it," he added.

Agarwal added that based on international playbooks and India’s trajectory, he expects light-touch but clear guardrails for esports including event and prize-money transparency, age and player-welfare norms, match-fixing/anti-betting safeguards, basic data/privacy compliance, and advertising guidelines distinct from gambling.

"You could also see visa/athlete facilitation and recognition for pro players in line with what markets like Germany and the U.S. do via esports/athlete visa routes. These measures protect integrity without stifling growth. Korea’s Act on Promotion of e-Sports and Game Industry frameworks are useful comparators," he added.