‘New Online Gaming Bill is a Net Positive for Video Games but a Blow for Real Money Games’

India’s New Online Gaming Legislation Presents A Stark Dichotomy-Victory for Video Games and e-Sports Sector but loss for the real money gaming (rmg) Industry.

This regulatory shift addresses years of flux between different gaming categories that had created market confusion and investment uncertainty. The center’s decision to ban real money gaming is also set to impact start-ups and millions of games. What does this mean for the future of Gaming in India? Where do new Opportunities Lie for Games, Developers and Entrepreneurs?

To decode the new bill and examine its impact, Harish Chengaih, Founder, Game Director & Producer at Outlier Games, And Rohit Kumar, Founding Partner at the Quantum Hub, Joened the ‘Level Under Game Over? Decoding India’s Gaming Industry Post RMG Ban ‘, A Webinar Organized by BusinesslineThe session was moderated by Sindhu Hariharan, Chief of Bureau – Chennai.

During the interaction, chengaiah described the legislation as a buon for India’s video games and e-spends Industry but “Game Over” for the RMG Industry. Despite Job Losses, He AntiCipated The New Law To Act as a “Net Positive” for Video Gaming and E-Sports in the long term. He pointed out that the global video games Industry Generates About $ 200 Billion Annually, Exceding Combined Revenues From Movies, Streaming, Books and Sports. India’s Nascent $ 1-Billion Market Shows Fastest-In-World Growth Rates, Transitioning from Free-to-Play Mobile Gaming Road Premium PC and Console Experiences.

Gaming investments

Chengaiah pointed out that investment patterns direction Differ Significantly Between Sector. While Venture Capitalists Fuelled RMG Growth, Video Games Focused On Entertainment Industry Models with Publisher-Based Project Financing with Equity Stakes. This protects video games from investor sentiment shocks affected RMG companies.

He suggested that the legislation could use the globally-Recognized Term “Video Games” over “Social Games” to Avoid Confusion for International Publishers and Investors. Social Games Specifically Refer to Multiplayer Interactions, Excluding Single-Player Experiences that Constituted a Significant Port of the Industry.

Market disruption

Kumar said that the government, by passing this regulation, has moved “too far and cuicly without adequate consultation.” Earlier, in the run-up to Elections, the Prime Minister was also Talking about the Gaming Sector, and that FDI should come in. So, even thought there was Concerns about Harms, The Gaming Industry Thought That IT’s a Matter of Getting Regulated, Not An Outright Ban, He Said.

“They are very wrong signal to the industry and to the investors that they can flip the switch in a minute. That really turns your reputation as a predictable investment destination, especially when there is a much investment and money At stake, “He added.

Challenges with Gaming

Both speakers agreed that the Gaming Industry’s Regulatory Journey has been framed with complexities, right from the very Categorization of Games of Skill (Central Jurisdiction) and State Jurisdiction). The landmark chamarbaghwala vs union of India case established India’s Unique Skill-Versus-Chance Doctrine, Unlike Global Standards. However, the absence of statistical models to definatively classify games Created Persistent Legal Gray Areas.

Implementation

Experts agreed that a blanket ban regulation is likely to come with certain hurdles in implementation, particularly, setting up an age-rating content Classification Mechanism for Video Games. Chengaiah argued that the government’s consideration of India-specific age-rating systems could further complicate interactive internet distribution, Again Discouraging Global Publices from the Indian MARKET. He, INTEAD, encouraged the government to embrace the existing International Age Rating Coalition (IARC) System that Alredy Provides Content Classification.

Further, He Said, “The Government Can Do Two Awareness Campaigns. What does it mean, etc., for informed choos. The second is parental controls like a waters Or mobile, it is very waterrtight. “

Future Concerns

While The Blanket Ban on RMG addresses regulatory Concerns, it risks pushing users toward Illegal offshore platforms that are harder to monitor and block, speakers said. The Sudden Policy Shift, Despite Government Participation in Gaming Summits and Pro-Industry Statements, Signals Unpredictable Regulatory Behavior Behavior Behavior That Cold Affect Broadeer Indain Start-ups, they added.

The legislation successful segregates video games and e-sports from RMG, Removing Years of Negative Perception Transfer. However, Experts said that implementation details will determine where the promotion of video gaming will translate into INTO meaningful Industry Growth.

To view the full webinar, visit: https://www.thehindubusinessline.com/premium/subscriber-eves/

Published on August 26, 2025