New rules for online gaming will finally come into force in India from May 1st. Under the new regulations, the government will promote esports, while real-money gaming will be prohibited.
The country passed the Promotion & Regulation of Online Gaming Bill last year, and the Ministry of Electronics and Information Technology (MeitY) confirmed the new rules will be implemented next week.
“The enactment of the PROG Act 2025, brings much-needed clarity and structure to India’s esports ecosystem,” said NODWIN Gaming co-founder and managing director Akshat Rathee.
Game publishers will have a 90-day period to register as esports disciplines.
“The provision for formal registration of titles as esports by publishers is a particularly welcome move, as it eliminates the risk of misrepresentation and prevents proxy real-money platforms from self-declaring themselves as esports,” added Rathee.
NODWIN and other gaming companies have celebrated the move to promote esports. The government has said it will officially recognize the discipline as a sport, integrating it into recognized sporting federations.
Additionally, India will establish training academies, research centres, incentive schemes, and awareness campaigns to promote esports. Prime Minister Modi said he believes “India can dominate the global online gaming market” under the new framework.
“By formally recognising esports as a distinct, skill-based category, it addresses long-standing misconceptions that have held the industry back,” said CyberPowerPC India chief operating officer Vishal Parekh, in comments to Indian Television.
India To Attract Foreign Gaming Investment
“The introduction of clear guardrails and enforcement mechanisms will play a crucial role in building trust, not just among players and families, but also among global partners, brands and investors looking at India as a growth market,” said Parekh
Korea-based gaming company Krafton has vowed to invest heavily in the country in the coming years. The developer behind Battlegrounds Mobile India (BGMI) said it may launch a franchise league for the game, which has 200 million players in India.
“As esports continues to gain prominence in international multi-sport events, this move strengthens India’s position in the global competitive gaming landscape,” Parekh added.
Indian Gamblers Turn To Offshore Platforms
The new rules prohibit all forms of gambling, including online poker, DFS, and esports betting. As operators have begun to adapt to the regulations, Indians have continued using offshore gambling platforms.
Amrit Kiran Singh, President of the Skill Online Games Institute (SOGI), said that while Indian companies are losing out, companies in other countries are gaining a foothold by targeting users in the world’s most populous country.
Singh stated: “The only victims of this ill-advised ban are honest Indian gaming companies. The only gainers are Chinese gaming companies operating from locations such as Cyprus and Estonia.”