Innovation vs. Influence: The Battle for India’s Gaming Future

India’s real money gaming (RMG) industry has witnessed significant growth in recent years, evolving from casual fantasy leagues to a robust digital entertainment sector. With millions of users and rising investment, the sector now stands at a critical juncture not just of scale, but of governance.

At the heart of current debates is a pivotal question: Who gets to shape the future of the industry, and what impact will that have on innovation?

A Sector in Transition

As the RMG space matures, a new generation of startups has introduced alternative gaming formats including fantasy player stocks, opinion-based trading, and inning-wise competitions. These models place a greater emphasis on real-time decision-making and user skill, reflecting shifting consumer preferences toward more interactive and dynamic gameplay.

Yet despite growing interest in these formats, their progress has encountered resistance not from users or regulators, but from within the industry itself.

Disagreements Around Self-Regulation

Earlier this year, the Ministry of Electronics and Information Technology (MeitY) proposed a framework for self-regulatory bodies (SRBs) to bring structured oversight to the online gaming sector. The proposal, however, was withdrawn as it was expected that influence by the giants will prevail. 

According to MeitY, concerns emerged around whether dominant corporations might exert disproportionate influence over these bodies potentially shaping regulatory outcomes to favor established game formats over newer entrants.

The Risks of Policy Capture

The discussion around regulation is not about whether oversight is necessary most stakeholders agree that it is. Rather, the concern lies in ensuring that regulatory processes are inclusive and reflect the sector’s full range of formats.

Observers caution that a narrow approach could restrict emerging business models, discourage investment, and limit user choice ultimately slowing the sector’s evolution at a time of significant technological and cultural momentum.

Learning from Global Models

International precedents offer useful guidance. Countries such as the United Kingdom and U.S.A have adopted independent and transparent regulatory frameworks that support innovation while safeguarding consumers. These models allow for diverse gaming formats to coexist, with market dynamics rather than corporate lobbying determining which models succeed.

For India, a similar approach could foster healthy competition, attract international interest, and maintain consumer trust in a fast-changing digital environment.

A Broader Definition of Fair Play

India’s RMG sector now spans a wide spectrum from legacy fantasy sports to newer innovations like skill-based trading and live performance-driven formats. As the country moves toward formal regulation, experts suggest that the focus should be on creating a level playing field that allows all formats to be evaluated on their merit.

Policy, they argue, should neither enshrine the past nor preclude the future.

The Road Ahead

For the RMG sector to sustain its growth and continue to innovate, it will require regulatory frameworks that are inclusive, forward-looking, and resistant to monopolistic influence. Whether traditional formats or emerging models prevail should be determined by user engagement and the quality of the experience not by who holds the most market power.

At this critical moment, decisions around governance and regulation could shape not just the sector’s competitive landscape, but also its long-term trajectory.