The Indian gaming industry is at an inflection point. The recent ban on real money gaming (RMG) has triggered widespread disruption. It has made existing business models of leading platforms illegal. This has left thousands of professionals in limbo. Yet, within this crisis lies the seed of a much larger opportunity. India can reinvent itself as a global hub for esports design and development. The timing could not be better. On one hand, gaming has become one of the fastest-growing cultural and commercial forces worldwide. On the other hand, India already has the four pillars required to build a world-class ecosystem—the talent, internet penetration, investor interest and a passionate consumer base. What is missing is the pivot: a deliberate shift from monetisation-first models to original content creation.
Why India’s Gaming Sector Must Pivot from Real Money Gaming to Esports Development
The RMG ban has disrupted business models, but with talent, capital and community in place, India can pivot to become a global hub for esports design
A Workforce in Limbo
The RMG industry was never just about marketing and quick money. It drew upon some of India’s best minds in software engineering, data science, product management and UX design. Years of building scalable real-time gaming platforms have created a pool of professionals who understand live operations, gaming mechanics and user engagement. With the RMG ban, this workforce is suddenly available. Rather than being lost to unrelated industries, this expertise should be redirected toward the creation of competitive, skill-based esports titles. What they need now is the mandate and resources to design the next big global esports experience.
RMG platforms burnt investor capital on customer acquisition, relying on user deposits as the foundation of their revenue models. Their model blurred the line between gaming and gambling. As the size of industry gained critical mass, critics began to notice the impact on youths who were using this platform to gamble. This raised ethical concerns of addiction, financial harm and exploitative monetisation. Hence, the model was inherently unsustainable.
The pivot to esports design requires redirection of capital into three priority areas. First, funding indie and AAA [a classification that signifies high-budget, high-profile games] studios to develop original IP that can compete internationally. Second, establishing specialised training academies in game design, animation and esports management to cultivate the next generation of creators. Third, investing in frontier technologies such as cloud gaming, VR/AR integration and AI-assisted testing. This would subsequently help India leapfrog into the global big leagues. Such investments will not just create games. They will create intellectual property that has the potential to generate revenue streams for decades. Some of the sources of revenue include sponsorships, media rights, merchandise and live events.
Designing for India
The Indian youth is already hooked to gaming. Titles such as Battlegrounds Mobile India (BGMI) have shown the scale of demand, with millions of daily active players. This engaged community provides a ready-made base for testing and adopting homegrown esports titles. Designing for this demographic is a strategic advantage. Indian developers can build games that resonate with the psyche, preferences and cultural references of local players. Moreover, there exists a global market of the Indian diaspora who could be targeted. In essence, India can use its domestic community as both a laboratory and a launchpad.
Ironically, the RMG ban could end up helping pure-play esports. The new law makes a clear distinction between prohibited gambling formats and permissible skill-based gaming. This opens the door for supportive policies around esports and game development.
A three-pronged government strategy could accelerate the pivot. One, grant schemes and tax incentives for studios to invest in original IP creation. Two, accord “infrastructure status” to gaming and animation studios. This will ease access to funding and benefits. And three, formally recognise esports as a sport. This will help integrate it into federations and sporting bodies to give it structure and legitimacy.
Other nations have shown what is possible when government support aligns with industry ambition. South Korea and China’s dominance in esports was no accident. It was cultivated through policy, investment and cultural recognition. India now faces a similar moment of choice.
Towards a Sustainable Model
Unlike RMG, which was structurally dependent on user deposits, esports offers a more sustainable pathway. Its monetisation model is built on engaging content and thriving competitive ecosystems. Revenue flows in from sponsorships, broadcasting rights, digital ads, fan merchandise and live tournaments.
This model not only ensures regulatory compliance but also aligns with global industry standards. More importantly, it creates an ecosystem where value flows to creators, players and the broader economy rather than in high-risk betting mechanics.
The ban on RMG has undoubtedly created short-term pain. However, it has also forced the industry to evolve. The four pillars are already in place: talent, connectivity, capital and community. What is required is a concentrated push toward original, skill-based game design.
The prize is immense. If India can seize this opportunity, it will no longer just be the world’s largest consumer of mobile games. It can become the birthplace of the next Counter-Strike, Valorant or Dota. A truly global esports title conceived, designed and built in India. The disruption has reset the playbook. Now, India must decide whether it wants to remain a consumer market or rise as a creator in the world of esports.
The author is an in-house entrepreneurial finance expert at the Centre of Innovation and Entrepreneurship, Mahindra University. Views are personal and may not represent the views of his institution.