Gaming with actual currency. Now in a slump but still in the game, ready to accept new wagers.

India's real money gaming (RMG) and e-sports sectors are experiencing a significant shift, with numerous developments shaping the landscape.

Vikram Jeet Singh, Partner at BTG Advaya, has highlighted that Indian courts have refused to equate games of skill with gambling, thereby overturning established precedent. This decision could have far-reaching implications for the industry.

Meanwhile, some RMG companies are venturing into international markets, exploring acquisitions in conventional gaming and branching into wider entertainment opportunities in India. Kavin Bharti Mittal's Rush, for instance, is shifting its focus to the US and other global markets, concentrating on advertising and virtual goods.

The RMG segment generated revenues of approximately $2.4 billion in 2024, according to industry reports, supporting over 1 lakh jobs, as per a Lumikai report. However, the sector faces challenges, with some suggesting that RMG money could flow to speculative markets such as futures and options trading.

The Indian Game Publishers and Developers Association, established in 2024 by Nazara Technologies MD Nitish Mittersain, aims to boost the e-sports, social, and casual gaming sectors. Mittersain, who recently became a Founding Member of the association, also acknowledged the boost these sectors are experiencing.

The Supreme Court and High Courts have consistently upheld decisions in favour of games such as fantasy sports and poker, terming them knowledge and strategy tests and not based on chance. This legal clarity has provided a boost to the industry.

The Union government intervened in 2023 with lighter regulations under the IT Act, enabling self-regulation for games like fantasy sports and poker. This move was followed by the passing of the Regulation and Promotion of Online Gaming Bill, which aims to regulate e-sports and online social games while banning online games involving real money.

The ban on RMG could erode around 95% of Dream Sports' revenue, highlighting the potential impact of these regulations. However, Dream Sports is focusing on diversifying its offerings, including sports AI, free-to-play fan engagement, creator-led products, sports streaming and merchandising, sports travel, and a personal money management app.

The e-sports sector is also witnessing significant investment. Global leaders like Krafton have invested in JetSynthesis and acquired a majority stake in Nautilus. Rohit N Jagasia, Founder and CEO, Revenant Esports, believes the gaming industry is at an inflection point, with the law formally recognizing e-sports as a competitive sport and ensuring uniformity in regulations across States.

WinZO has entered the US market and launched ZO TV, offering localized short drama series. Zupee is exploring offering its fantasy game for free and running ads on the platform, apart from rolling out subscription or in-app purchases.

However, the question of federalism remains. Saswati Soumya Sahu, Partner at ANB Legal, has raised the issue of whether States like Goa and Sikkim will continue to have an overriding power in regulating games of chance and games of skill. This is a complex issue that the industry will need to navigate as regulations evolve.

In conclusion, India's RMG and e-sports sectors are experiencing a period of significant change and growth. With the right regulations in place, these sectors have the potential to create jobs, attract investment, and provide exciting new forms of entertainment for Indians.

Gaming with actual currency. Now in a slump but still in the game, ready to accept new wagers.