The global gaming industry is experiencing unprecedented growth, with India emerging as one of its fastest-growing markets. At the India Gaming Show (IGS) 2025, organised by the Confederation of Indian Industry (CII), top industry leaders gathered to explore new opportunities, innovations, and collaborations shaping the future of gaming.
The Indian government’s proactive approach to supporting esports has further accelerated its expansion. Initiatives such as the inclusion of esports in the Asian Games, the recognition of esports as a sport by the Ministry of Youth Affairs and Sports, and the recent decision to provide cash incentives to medal-winning players and coaches signal the growing legitimacy of competitive gaming in the country.
Skyesports, one of India’s top esports tournament organisers, plays a pivotal role in defining the country’s competitive gaming landscape. Established with the aim of developing grassroots esports talent, Skyesports has organised large-scale tournaments and partnered with state governments to elevate the status of esports. Through multiple partnerships, such as the Tamil Nadu CM Trophy and the forthcoming Skyesports Souvenir 2025 National Championship in Karnataka, the company is actively promoting the recognition and development of esports as a legitimate sporting discipline in India.
In an exclusive interview with SiGMA News, Shiva Nandy (pictured above), CEO & Founder of Skyesports, shared his insights into the Indian esports market, highlighting opportunities and challenges, particularly in monetisation and regulatory clarity. He stressed the need to establish a national esports federation and dedicated training academies, similar to the National Cricket Academy, to further nurture talent and provide necessary institutional support.
As esports continues to gain momentum, India is on the path to becoming a global powerhouse in the competitive gaming arena. Additionally, discussions on uniform regulatory policies and differentiated tax structures for games of skill and chance indicate that the government is bullish about the industry’s economic benefits.
SiGMA: The Skyesports Souvenir 2025 National Championship, held from February 27 to March 1 and supported by the Government of Karnataka. How do collaborations with state governments help legitimise esports and ease event hosting?
Shiva Nandy, CEO & Founder of Skyesports: We have an approach called bottom to top approach. So, to execute from the government of India’s angle, first, we need to reach out to the state level. So, that is the reason we are focusing on the state level. When we build the state-level chapter, things will ultimately change in India.
So that’s why we started in Tamil Nadu and partnered with the Tamil Nadu government. We executed a lot of events there. There is a great IP called Tamil Nadu CM Trophy 2024 (Organised by the Tamil Nadu government through the Sports Development Authority of Tamil Nadu).
Last year, we executed Esports as a demo event. And this year, we are executing as a medal event. So, we want to explore different states. Right now, we have partnered with the Karnataka State Government, and it’s interesting because the state subject is very important. And bringing national champions to Karnataka is the first step for that state.
SiGMA: Are you planning to collaborate with other state governments too?
Nandy: Yes, as I mentioned, we started with Tamil Nadu; right now, we are working with Karnataka, and then we are in talks with Kerala, Andhra, and Maharashtra. So, step by step, we are working on it.
SiGMA: What are the key challenges facing monetising esports in India, and how are you addressing them?
Nandy: We don’t have any issues with endemic brands (The term ‘endemic’ is defined as native or natural to a specific environment or its surroundings) or anything related to esports. However, it is a big challenge when it is not associated with esports.
For example, bringing FMCG, automobile, or non-endemic brands is always tough. However, when the state and union governments start supporting esports and they are officially regulated esports, many brands will show interest; right now, we’re partnering with a few FMCG brands for our upcoming IP called Skyesports Championship. So, 4-5 years back, it was very tough, but things are changing a lot if you look at it right now. That reason is, as you mentioned, the government, publishers, and a lot of media are supporting it.
SiGMA: The Indian Ministry of Youth Affairs and Sports decided to include esports medal winners and their coaches under its Cash Incentive Programme. How will this cash incentive program affect the country’s overall esports ecosystem?
Nandy: Esports World Cup is doing pretty well in South India. And now, the Olympics also added. So, the Olympic Association announced Esports Olympics 2027, which is going to happen in Riyadh. So, uh, when the world is ready for eSports, we also have to start it. So, the government recently announced great news: the people from the tier 2, tier 3, and tier 4 cities, as well as the players and the users, will come forward to participate. The brand will help tier 3 tier 4 audiences, and we can get a lot of grassroots players who can compete at the national level and then internationally. So, it is a great move by the Indian government, and it will benefit many upcoming users.
SiGMA: As per the current tax policy of the Indian government, games of chance and games of skill are subject to the same tax and policy. Do you think the Indian government should differentiate between games of skill and games of chance and consider different tax regulations for each?
Nandy: 100 percent, esports is a game of skill, and the government should not consider it equal to a game of chance. The taxation should be different because it is a sports category. And even we are currently paying 31 percent for any price pool, which is any player earning from esports. The complete regulation ought to be out. When the complete regulation is out, all the stakeholders are going to sit and discuss and differentiate the taxation for each category.
SiGMA: The FATF, which is the global anti-money laundering watchdog, invited online gaming companies and officials from the finance ministry to discuss money laundering and terror financing risks associated with the operations of such companies and offshore entities. This is FATF’s first call on Indian gaming companies to discuss this. So, in light of this meeting, how do you perceive the government’s move on a single regulatory framework for India’s online gaming sector?
Nandy: See, anything other than banning regulation is good. So, let’s see what the government is doing. If they’re regulating properly, then it is good.
SiGMA: What’s your take on banning the game of chances because the Tamil Nadu government has banned some of the popular game of chances?
Nandy: This is a state matter and depends on the state government because it is also relatable to the local culture. For example, people in Tamil Nadu, Karnataka, and Delhi have different cultures. Though we are all from India, each state and union territory has its own unique emotions and perspectives. That’s why, even though the union government makes laws or regulations, it leaves it to the states with their regulations and frameworks. We need to wait and see what sort of regulations and policies are coming and how the states will adapt or abide by the central regulations.
SiGMA: Currently, cricket is the most popular sport in India, and it has the National Cricket Academy (NCA) in Bangalore for nurturing talent. Do we need a similar academy for esports in India to nurture talent for participation in various events in the upcoming years?
Nandy: It is necessary, so a few state governments have already started centers of excellence in gaming and esports. As things change, these associations will come and help upcoming players.
SiGMA: Should there be a federation where all esports games come under one umbrella? Currently, esports is generally managed by private organisations. Do we need a common body or federation for esports in India?
Nandy: I respect that, but we need a federation, we need a common body. If we have problems with publishers, the government, or anything else, we don’t know where to go for help. So, if we have a unified federation combined by stakeholders, it would be welcome. In my opinion, a federation is much needed in India.