Regulation of Online Real Money Games and E-Sports in India
The Ministry of Electronics and Information Technology (MeitY) is intensifying efforts to prevent banned online real money games from resurging by classifying themselves as e-sports.
Background and Legislation
- In 2025, the IT Ministry introduced the Promotion and Regulation of Online Gaming Act, prohibiting all online real money games.
- Popular platforms like Dream11, Mobile Premier League, and Winzo were affected by this ban.
- The Act, however, permits e-sports but imposes stricter compliance requirements compared to other games.
Compliance and Monitoring
- MeitY will closely monitor how winnings are distributed in e-sports to ensure compliance.
- Games that involve factors beyond a player’s control are flagged as potentially non-compliant.
- E-sports must be recognized under the National Sports Governance Act to register under the gaming Act.
Challenges and Concerns
- There is concern that banned games might rework their platforms to align with e-sports criteria while maintaining original business models.
- E-sports could potentially involve wagering, betting, or gambling, which needs regulation.
- The National Sports Governance Act does not currently provide a clear mechanism for recognizing e-sports.
Industry and Ministry Discussions
- Industry discussions with the ministry focused on whether banned entities could remodel as e-sports.
- Proposals included offering free play or subscription-based models without ads.
- MeitY remains cautious about potential loopholes being exploited by gaming companies.
Definition of E-Sports Under the Act
- An e-sport is defined as:
- An online game involved in multi-sports events.
- Organized competitive events between individuals or teams.
- Recognized under the National Sports Governance Act.
- Outcome determined by physical dexterity, mental agility, and strategic thinking.
- Must not involve any form of betting or wagering.
