On August 28, 2025, India’s new Promotion and Regulation of Online Gaming Act, 2025 took effect. At the same time, Saudi Arabia is pouring billions into its esports and gaming industry. This raises a key question: as Saudi invests big, India’s tight rules may slow esports growth.
India’s Online Gaming Act bans all real-money gaming. This includes fantasy sports, poker, and other money-based games. The law also sets up a legal framework to support esports and casual games.
Under the new law:
Operators of money games may face up to 3 years in jail and ₹1 crore fine. Repeat offences can bring higher penalties. India TodayThe Indian Express
Those who promote or publicize such games, including influencers, may face jail time and fines too. The Indian ExpressYogonet
Banks and payment services cannot handle transactions related to money games.
At the same time, esports has been formally recognized. India plans to promote esports through training, guidelines, and support mechanisms. This includes creating a regulatory body for esports.
Prime Minister Modi praised the act. He said it shows India is serious about becoming a leader in digital entertainment and innovation.
Legal Challenge
The first legal case has emerged. A23, a top Indian gaming company, filed a petition in the Karnataka High Court. It argues the new law unfairly treats skill-based games as gambling and violates constitutional rights.
The court will hear the case on August 30, 2025. A23 claims the law hurts legitimate business and was passed too abruptly.
Saudi Arabia's Big Esports Bet
At the same time, Saudi Arabia is betting big on esports and gaming. It has pledged billions of dollars, aiming for a $38-billion industry by 2030.
Saudi-funded Savvy Games Group has already invested around SAR 50 billion (~USD 13 billion) in game development and publishing.
The country also hosts major esports events. The Esports World Cup in Riyadh offered a record $70 million prize pool. Saudi will also host the first Olympic Esports Games in 2027.
It even plans the Esports Nations Cup in 2026 with global gaming giants and over 100 countries competing.
Two Paths, One Industry
India and Saudi Arabia now stand at different crossroads:
Saudi Arabia is pushing forward with huge investment, building infrastructure and hosting tournaments.
India is tightening rules, banning money games, and leaving esports to grow under regulation.
This contrast may impact India’s ability to attract global esports investment.
Industry experts hope India’s clear rules may still help, by shifting focus to safe esports and casual games.
