Key Points

They say the law not only recognises e-sports as a new dimension of competitive sport but also addresses serious social concerns such as addiction, financial security, fraud and money laundering.

Gaurav Sahay, Founding Partner of Arthashastra Legal, said the Bill is comprehensive in scope because it applies across the chain -- from service providers and facilitators to those promoting such games.

He added that the framework perseveres to prevent fraud, money laundering and terror financing by prohibiting all forms of real-money gaming, whether based on chance or skill.

Financial institutions, payment intermediaries and advertising platforms have also been barred from supporting such games.

Sahay also highlighted the inclusion of “aggravated liability” for repeat offences, which provides for harsher penalties including imprisonment and heavy fines.

At the same time, the Bill provides recognition to e-sports as a distinct sport and calls for a National e-Sports Authority and a National Gaming Authority to oversee regulation, classification, investigation and blocking of unlawful platforms.

Industry leaders in the gaming sector welcomed the government’s intent to promote e-sports. Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, said the step is encouraging but stressed the need for clear definitions to distinguish between e-sports, social games and real-money gaming.

“Ambiguity in terminology has often caused confusion for regulators, players and investors. Clear definitions will create a stable environment that fosters investor confidence and sustainable growth,” he said.

Animesh “Thug” Agarwal, Co-founder and CEO of S8UL, called the Bill a “historic turning point” for Indian e-sports.

He said by drawing a clear line between skill-based gaming and betting, the law safeguards the integrity of the ecosystem while creating space for structured growth.

“Esports is a sport built on skill, discipline and years of grind. With government recognition and proper infrastructure, India can become a global powerhouse,” he added.

Legal experts have also pointed out that the Bill represents a shift from regulation to prohibition when it comes to real-money gaming.

Vikram Jeet Singh, Partner at BTG Advaya, said that while Indian law has traditionally allowed games of skill with monetary stakes, the new law bans even those if they involve real-money play.

He noted that this follows recent court decisions and responds to concerns about money laundering and social harm.

The Indian Digital Gaming Society (IDGS) has expressed support for the government’s move, saying it welcomes the recognition of e-sports and the distinction between real-money gaming and casual video games.

The body said this clarity will allow e-sports and casual gaming to grow as safe and community-driven platforms for youth engagement, creativity and digital innovation.

- IANS