After being formally separated from gambling-based segments, esports are now eyeing towards becoming a far more attractive proposition for mainstream corporate sponsors and institutional investors.
Esports’ Rise vs. RMG’s Decline
Esports, which traditionally depends on sponsorships and media rights, is now expected to grow fan-led monetisation through event ticketing, merchandise and digital engagement. Big brands like Hyundai and Intel are already expanding their sponsorship commitments.“With regulatory uncertainty now removed, we anticipate significant capital inflows into Indian esports. The market, valued at over Rs 1,800 crore ($208.73 million) in 2024, is projected to grow to over Rs 10,000 crore ($1.17 billion) by 2034, at a robust CAGR of 18.8%. Clear governance frameworks not only provide investor confidence but also ensure long-term industry stability,” stated Esports Federation of India (ESFI).
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However, these figures are still a fraction of the nearly Rs 80,000 crore ($9.1 billion) online gaming market projected by WinZO and IEIC by 2029. Payment aggregators such as Razorpay, Cashfree, PhonePe, Easebuzz and PayU—who derive around 10% of topline from gaming—are also likely to feel the pinch.
As users begin to transition from real money gaming (RMG) to cultural and skill based esports, these companies are seeking tax incentives, reduced customs duties on hardware and greater digital infrastructure support.Meanwhile, with Parliament’s passage of the Promotion and Regulation of Online Gaming Bill, money-based online games are grappling with shrinking budgets and unclear strategies. Gaming companies like Dream11, Winzo, MPL, My11Circle, Zupee, A23 Rummy —have announced closures of RMG formats and are pivoting to free-to-play models.
Contribution of online gaming
Industry estimates suggest online gaming contributes over Rs 20,000 crore annually in direct and indirect taxes. It has drawn more than Rs 25,000 crore in FDI up to June 2022, and sustains over 200,000 jobs — many of which now face uncertainty. Esports companies are, however, happy upon inclusion under the National Sports Governance Act which signifies them standing at par with traditional sports.
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From winning double gold at the Waves Esports Championship 2025 (under the ministry of I&B), a silver at BRICS Esports 2024, bronze at the 2018 Asian Games and medals at both the 2022 Commonwealth and 2024 Asian Esports Games,
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