India’s booming online gaming industry is under pressure to resolve growing concerns around regulatory uncertainty, user safety, and content moderation. As individual states continue to issue conflicting rules, industry leaders and legal experts are urging the union government to introduce a single, nationwide framework to oversee online gaming operations.
Confusion over state regulations
At the Digital Entertainment Summit (DES) 2025 hosted by Storyboard18, multiple stakeholders highlighted how differing state-level gaming laws are hurting the sector. Shivani Jha, founder of the eSports Players Welfare Association (EPWA), said that several Indian states have “overstepped their powers” by categorising games like poker, ludo, and rummy as gambling despite their skill-based nature.
“Games like FIFA or chess are never questioned, but poker and rummy constantly face legal battles,” Jha said. “This legal ambiguity demands a unified gaming law from the Centre.”
Currently, the classification of games as skill-based or chance-based varies widely across states, leading to legal challenges and business disruption for legitimate gaming companies.
Esports and toxicity
Piyush, founder and CEO of gaming platform Rooter, addressed ongoing challenges related to online toxicity, particularly towards female gamers. He flagged the lack of strong age-gating features as a risk for underage users.
“Some female players are using male avatars to avoid abuse during gameplay,” he revealed.
“These problems can be addressed more effectively if platforms are regulated by a central authority,” he said. Rooter, which supports over two million Indian content creators and advertises for more than 50 brands, recently launched Rooter Shop — a marketplace for in-game products linked directly with users’ gaming accounts.
Piyush explained, “Buyers on our platform are verified through their BGMI PC codes. This ensures user authenticity while aligning with marketplace norms and secure payment systems.”
Government begins work on regulatory framework
The union government has taken early steps toward addressing the issue. A dedicated committee comprising officials from the Ministry of Home Affairs, legal experts, and senior industry representatives is exploring models for a nationwide regulatory framework.
Concerns have emerged over addiction among youth, online abuse, fraud, and the general lack of accountability in digital gaming environments. Industry insiders believe that government intervention is crucial for standardisation and long-term sectoral growth.
Need for industry-government collaboration
While regulation is seen as necessary, experts also called for a cooperative approach. Ananay Jain, partner at Grant Thornton, said that responsibility must be shared across the ecosystem. “It shouldn’t rest only on the government,” he said.
Jain pointed to existing legal tools like the Information Technology Act of 2021 and the Digital Personal Data Protection Act of 2023, which offer clear content guidelines and privacy safeguards. “India already has a good legal foundation. We now need active industry support to enforce responsible digital entertainment,” he added.
He also highlighted the efforts of some companies in adopting Codes of Conduct and Ethics, which promote fairness and transparency in online gaming.
Slow implementation of self-regulation bodies
Despite frameworks allowing for the formation of self-regulatory bodies, implementation in India has been slow, said Jha of EPWA. “Until those mechanisms become active, the industry is stepping in to protect user safety,” she noted. “However, government involvement is necessary to formalise these practices and create a safe gaming environment.”
Jha further said, both civil society and government bodies must work alongside the industry to develop a sustainable and inclusive digital entertainment ecosystem.
