New Gaming Regulations Impact India's Esports Sector: Challenges and Opportunities
Gaming bill a double-edged sword for Esports, offers relief and sponsorship gap
The Times Of IndiaImage: The Times Of India
India's esports sector faces challenges following new gaming regulations that separate esports from real-money gaming, leading to a decline in sponsorship revenue. However, industry experts predict growth driven by increasing viewership, government support, and the rising popularity of competitive gaming in smaller cities.
- 01New regulations separate esports from real-money gaming, impacting sponsorships.
- 02A 7.5% revenue decline is projected for 2025 due to the exit of major sponsors.
- 03Growth in esports is expected to continue, particularly in tier-II and tier-III cities.
- 04Industry leaders emphasize the importance of integrating tournament IPs and franchise models for monetization.
- 05The market for video games and esports is projected to grow from ₹63 billion in 2025 to ₹92 billion by 2028.
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India's esports sector is navigating a challenging landscape following the introduction of new gaming regulations effective May 1, which formally recognize esports but also separate it from real-money gaming. This shift has led to a 7.5% revenue decline in 2025, as many real-money gaming companies, previously significant sponsors, exited the market. Despite this setback, industry experts remain optimistic about the future. They anticipate growth driven by increasing viewership and participation, particularly in tier-II and tier-III cities, alongside support from state and central governments. Karan Pathak, associate director of esports at Krafton India, noted rising interest from consumer brands and tech companies in esports. Additionally, Rajan Navani, chief executive of JetSynthesys, pointed out that monetization will increasingly rely on integrating tournament intellectual properties and developing franchise models akin to the Indian Premier League (IPL). The FICCI-EY report projects that the video games and esports market will expand from ₹63 billion in 2025 to ₹92 billion by 2028, indicating a potential rebound in the sector.
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The new regulations and subsequent decline in sponsorship revenue may limit funding for esports tournaments, affecting players and teams. However, growth in the sector could lead to new job opportunities and increased consumer engagement.
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