From RMG Ban to Esports Glory: India's Gaming Rollercoaster in 2025
The year 2025 has been a tumultuous one for India's gaming industry, marked by a significant regulatory shift and a simultaneous surge in esports success. The journey has been anything but smooth, resembling a rollercoaster ride with both jarring drops and exhilarating peaks.
The most impactful event of the year was the enactment of the Promotion and Regulation of Online Gaming Act (PROGA) 2025. This law effectively banned all real-money games (RMGs), regardless of whether they involved skill or chance. This decision sent shockwaves through the industry, as RMG accounted for an estimated 80% of the sector's revenue. The immediate impact was severe, with leading operators shutting down their Indian operations, a widespread cessation of online real-money gaming, and significant financial losses reported by major gaming companies. Flutter Entertainment, for instance, booked a $556 million impairment after its India unit, Junglee Games, halted real-money rummy. Nazara Technologies also recorded a substantial impairment on its investment in PokerBaazi. The ban also impacted associated sectors like marketing, advertising, and tech infrastructure.
The government's rationale behind the RMG ban was to protect citizens from potential harm linked to money-based gaming, citing concerns over financial fraud, money laundering, and even the financing of terrorism. Lok Sabha member Bansuri Swaraj defended the ban, arguing that PROGA exposed the "wolf" of corrosive social influence that the RMG sector represented. However, the ban also sparked debate due to the RMG sector's significant economic contributions, including substantial tax revenues, job creation, and foreign direct investment. Some industry experts warned that the ban could lead to a shift of demand to offshore platforms, undermining consumer protection efforts. The Supreme Court has deferred hearing challenges to the RMG ban until January 2026.
Despite the RMG ban, 2025 also witnessed a remarkable rise in the Indian esports scene. The PROGA act also aimed to encourage healthy alternatives by promoting esports as a legitimate sport. Ved Bamb became India's first esports world champion with his win at the Pokémon GO World Championship. This victory, along with other achievements, led to esports athletes being acknowledged alongside traditional sports professionals, making them eligible for monetary compensation and national awards. The inclusion of esports in the Khelo India Youth Games boosted participation from smaller towns, contributing to a broader and more competitive national esports structure. States like Maharashtra, Tamil Nadu, and Rajasthan hosted official tournaments, fostering local talent development. In June 2025, Danial Patel and Tejaskumar Hasmukhbhai Bhoi clinched India's first-ever international gold medals at the WAVES Esports Championship in eFootball and World Cricket Championship 3, respectively.
Several organizations played a crucial role in the growth of Indian esports. NODWIN Gaming acquired StarLadder and Evo, demonstrating India's ambition to lead on a global scale. S8UL won the Esports Content Group of the Year award for the fourth time and partnered with Monster Energy. They also expanded into chess esports, signing grandmasters Nihal Sarin and Aravindh Chithambaram.
The Indian gaming market is projected to reach ₹33,243 crores by 2029, with esports revenues expected to grow at a 33% CAGR, reaching ₹2,799 crores. The number of gamers in India is also on the rise, with analysts forecasting over 500 million gamers by the end of 2025. This growth is accompanied by an increasing proportion of female gamers, expected to reach 40% by the end of 2025. With 58% of gaming engagement coming from Tier 2+ cities, regional language content and local cultural references are becoming increasingly important.
While the RMG ban presented significant challenges, it also created opportunities for innovation and growth in other segments of the gaming industry. The rise of esports, the increasing number of gamers, and the growing accessibility of gaming hardware and content point towards a promising future for gaming in India. The industry is adapting, with RMG companies diversifying into casual gaming and esports. Whether this transition will be enough to offset the losses from the RMG ban remains to be seen, but the Indian gaming industry has demonstrated resilience and a determination to thrive in the face of adversity.
