Online Gaming Bill puts creator earnings from RMG in flux; 25–30% ad spends to shift to esports, casual gaming
The proposed Bill banning real money-based online games could cut influencer earnings in the short term, but industry leaders say it will push agencies toward structured, brand-safe collaborations in esports and skill-based gaming.
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The Promotion and Regulation of Online Gaming Bill, 2025, tabled and passed in Lok Sabha on August 20, is poised to reshape India’s influencer and creator economy- an industry that has thrived on partnerships with online gaming and fantasy sports platforms over the past few years. The Bill aims to regulate e-sports, educational and social gaming while imposing a blanket ban on online money games that involve monetary stakes.
The Bill formally recognises e-sports as a legitimate competitive sport and outlines government support for training academies, research centres, and technology platforms to fuel its growth. Social and educational games will also be promoted, with safeguards to ensure age-appropriate content and integration into skill development and learning initiatives.
At the same time, the legislation takes a strict stand against money-based online games. If passed, it will outlaw advertisements across television, print, digital platforms, and influencer or celebrity endorsements that promote such games. Penalties for violations include imprisonment of up to two years, fines of up to ₹50 lakh, or both. Repeat offences could invite stricter punishment—up to three years in jail and fines reaching ₹1 crore.
Industry estimates suggest that real money game segment represents an aggregate annual revenue of around ₹18,000 crore (out of the total gaming revenues), which now stands to be impacted by the proposed prohibition.
For the influencer ecosystem, the immediate fallout could be steep.
“This is a very wide-ranging prohibition,” said Vikram Jeet Singh, Partner, BTG Advaaya. “It could extend to film stars acting in advertisements, agencies making those ads, influencers endorsing platforms, and even players wearing sporting uniforms sponsored by online gaming companies. Platforms like YouTube, X, cable TV channels, and news outlets will also have to refuse to carry such ads. The entire ad ecosystem is potentially liable for compliance.”
For creators, the immediate pain will be felt in paused or cancelled campaigns.
Sakchi Jain, CA and Financial Educator and a creator, pointed out “The Indian influencer space grew massively on the back of online gaming and fantasy sports. These weren’t just advertisers, they created consistent work during cricket seasons and gaming tournaments."
Now, there will likely be a sudden pause in brand campaigns and collaborations from real-money gaming platforms. Creators who relied heavily on such brands may see cancellations or delays in payments. Agencies too might find it tough to fill these gaps quickly. She added that it could mean a noticeable dip in revenue and more uncertainty in ongoing projects.
Rohit Agarwal, Founder & Director, Alpha Zegus pointed out, "Within the next 12–18 months, nearly 25–30% of ad spends that previously went into real-money gaming will shift toward esports, casual social gaming, and adjacent creator-led content. That builds credibility and attracts mainstream brand categories.”
According to the FICCI-EY Media & Entertainment Report 2025, India’s gaming market was valued at ₹35,000 crore (~US$3.7 billion) in 2024.The industry is projected to grow at a 16–20% CAGR, reaching ₹80,000 crore (~US$9.1 billion) by 2029.
In just one year, India added 33 million new gamers, pushing the total user base to 488 million. That number was expected to cross 517 million in 2025, meaning nearly 40% of the country’s population will be gaming online.
What’s fueling the money flow? Real money gaming, including fantasy sports and skill-based games, which contributed 86% of total game spending (~US$3.2 billion) in 2024.
Agarwal estimates that in terms of creators’ earnings, casual and mid-tier game streamers typically take home ₹40,000–₹75,000 per month, while top esports streamers and dedicated RMG creators can earn ₹1–1.5 lakh monthly through a mix of brand deals, tournament payouts, affiliate income, and platform monetization.
If we average earning at ₹50,000/month across 300,000 creators, RMG segment represents an aggregate annual revenue of around ₹18,000 crore, which now stands to be impacted.
Meanwhile, agencies will need to rethink their approach.
Chandan Sharma, GM – Digital Media, Adani Group, argued, “For agencies, the focus will move beyond pure reach and engagement to ensuring campaigns are built around responsible communication, consumer protection, and long-term value. Much like subscription fatigue forced platforms to reinvent, influencer marketing in gaming will need hybrid models."
He foresees credit-back systems where part of a spend translates into permanent upgrades or community-driven models where access to exclusive groups comes bundled with preferential NFT pricing, merchandise, and events.
It is to be noted that a central regulatory authority has been proposed under the legislation to oversee compliance, support policy formulation, and encourage innovation in the gaming sector. According to the financial memorandum, the authority will be set up with an initial capital expenditure of around ₹50 crore and an annual recurring cost of ₹20 crore, drawn from the Consolidated Fund of India.
Industry leaders say the long-term picture could be healthier.
Agarwal welcomed the clarity the Bill brings. “The distinction between esports and betting-led models is critical."
For years, many creators- especially in Tier 2 and 3 markets- were caught in a grey zone. With money-based games explicitly prohibited, agencies now have a clear red line, he added.
Kushal Bhuva, AVP-Influencer Marketing, WRM, points out that the proposed Bill marks a decisive shift in how influencer marketing intersects with gaming.
"Real-money formats were a significant advertising category, but they operated under constant uncertainty. The government’s clear prohibition now eliminates that ambiguity and creates space for e-sports, casual gaming, and entertainment to grow with legitimacy."
For agencies, Bhuva adds, this change is less about loss and more about redirection.
"Budgets will naturally move to categories with long-term relevance, while compliance becomes central to operations. Updating creator contracts, advisories, and campaign checks is now essential to safeguard both influencers and brands," he adds.
The outcome is an industry that is more structured, responsible, and better positioned for sustainable growth.
But not everyone is convinced the Bill strikes the right balance.
Sourya Banerjee, Associate Director – Public Policy Comms, Jajabor Brand Consultancy, warned that the draft not only bans games of chance but also those of skill, effectively throwing the baby out with the bathwater.
"Skill-based RMG applications are legal and widely endorsed by celebrities and influencers. Over-regulation could push users toward unregulated apps while cutting off legitimate income streams for creators who were working with compliant platforms.”
For influencers who have leaned heavily on fantasy sports and online gaming partnerships, the transition may be bumpy.
“This impact will be felt both in the short and long run,” Jain added. “But it’s also a reminder that depending too much on one category is risky. The disruption could push creators to diversify into safer niches like casual gaming, reviews, or broader entertainment.”
Read more: Online Gaming Bill a ‘Gift to offshore betting firms,’ industry slams lack of consultation
With India’s 650 million gamers and over 180 million fantasy sports users, the market opportunity is undeniable. But as the Bill redraws boundaries, experts agree the creator economy is moving toward a more structured, brand-safe, and sustainable future.
