EXCLUSIVE: Esports gains recognition in Gaming Bill, industry warns against license raj

India’s video games and esports industry has largely welcomed the government’s move to introduce the Promotion and Regulation of Online Gaming Bill, 2025, calling it a long-awaited step toward recognition and growth of the sector. However, industry leaders cautioned that excessive compliance and a potential “license raj” could derail innovation and undermine the bill’s positive intent.

On Wednesday, IT Minister Ashwini Vaishnaw introduced the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha. The proposed legislation aims to regulate e-sports, educational and social gaming while imposing a blanket ban on online money games that involve monetary stakes. The Bill also prohibits advertisements of such prohibited games.

Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming 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 said, "The absence of precise definitions has often led to ambiguity and conflation around the term "esports". Such overlaps can create confusion not just for regulators, but also for players, teams, investors, and organizers who are working hard to build this industry."

Rathee further said, "Clear and consistent definitions will create a strong regulatory foundation that ensures investor confidence, long-term stability, and sustainable growth. It will allow every stakeholder from athletes and teams to platforms and video game publishers to operate with clarity and confidence, knowing the industry’s guardrails are well established. 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."

While the bill has been praised for drawing a firm line between esports and real-money gaming, concerns have surfaced about excessive government control. An executive from the industry noted, “Another contention in the Bill is that it imposes a heavy compliance burden on small and mid-sized video gaming firms. By attempting to introduce a license raj, the government risks stifling innovation and creativity by controlling which games can be published. Regulations for emerging video gaming firms must be lighter and more enabling.”

SuperGaming CEO and Co-founder Roby John welcomed the government’s stance on differentiating esports from gambling-related formats. “We have always focused on growing the esports industry, but the blurred definition of online gaming often put the video games industry in trouble. With the government now acknowledging this long-pending demand, the video games industry is set to flourish and grow globally,” he said.

Rajan Navani, Founder & CEO, JetSynthesys said, “India has taken a welcome step for promotion of casual video gaming and esports by giving the industry clarity between sport and real money gaming. This distinction gives players, teams, and investors the confidence to plan long-term, and it should accelerate the growth of tournaments, training centres, and high-skill jobs across tech, content, and production. With uniform, simple guidelines that are easy to follow, India can position itself as a top-tier esports market and a global exporter of talent. JetSynthesys, as a pioneer of esports in India, will continue working with policymakers, publishers, and the community to build a safe, world-class ecosystem from India."

Rohit N Jagasia, Founder & CEO, Revenant Esports said, "The Promotion and Regulation of Online Gaming Bill, 2025 is a welcome step toward resolving years of uncertainty in the sector. At present, a mix of state-level restrictions creates inconsistency. This bill helps bring a balance to that. With a central framework in place, we can unlock investment, foster innovation, and drive global competitiveness."

Jagasia said, "The bill also recognises the crucial difference between esports, social gaming, and chance-driven money games. For esports in particular, that clarity is essential for growth and credibility. Once the detailed provisions are made public, we’ll have a clearer sense of its implications for esports. But it could well mark the start of India’s rise as an international esports leader."

As the bill moves toward implementation, the industry stands at a crossroads—welcoming regulatory clarity and recognition, but urging policymakers to ensure that rules do not morph into stifling red tape.

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