India bans real-money games but looks to legitimise esports as competitive sport

• The Promotion and Regulation of Online Gaming Bill 2025 will prevent banks and other institutions from allowing real-money game transactions in India.
• Esports will see more governmental support but also more regulation.

The Indian government has introduced an online gaming bill banning real-money games but promoting esports.

As per the Promotion and Regulation of Online Gaming Bill 2025, online games have become "one of the most dynamic and fastest-growing segments of the digital and creative economy".

However, the bill accused many real-money games of having manipulative design features, addictive algorithms, bots and undisclosed agents, often "leading to financial ruin". Thus, the government has elected to ban real-money games whether they are skills-based or chance-based.

Ads and promotion of these games will also no longer be allowed.

Banks and other such institutions will be banned from allowing real-money game transactions in India and any persons attempting to offer such games could face a fine, imprisonment or both.

No betting, just competing

Meanwhile, esports will see further regulation but also more promotion. The Indian government is looking to recognise esports as a legitimate competitive sport to help it grow in the country, potentially set to introduce incentives and awareness programmes, coordination with sports federations and more.

However, betting on esports will not be permitted.

"This bill marks a historic turning point for Indian esports. 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," said S8UL co-founder and CEO Animesh Agarwal.

"Esports 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 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."

Nodwin Gaming co-founder and managing director Akshat Rathee commented: "The government’s intent to recognise 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 materialise, 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."