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Esports Regulation in India: Legal Frameworks and Career Viability in the Growing Market

Written by Priyanshu Raj


Introduction:


The past ten years has seen esports come to be from a rather niche thing, almost a side show, to a true behemoth of a multibillion-dollar industry worldwide. Along with the tremendous growth of the gamer population and the numerous tournaments, this is the main reason for the huge rise in the popularity of esports in India, which is also getting a lot of investment from local and international organizations. However, the increasing development of esports in India seems to be a complex issue in recognising the same. This examines the legal challenges to the esports industry, and it also discusses whether esports can be considered a legitimate career.


The Growth of Esports in India:


Esports in India, one of the fastest-growing fields, has achieved rapid development thanks to high-speed internet, affordable smartphones, and the mobile game craze that includes PUBG Mobile, Free Fire, and Call of Duty Mobile. The referred growth has not only become a base for the establishment of esports teams such as Global Esports, S8ul, Entity Gaming, and Team Soul but also allowed coaching to young people who are trained to be professional gamers that can represent the country at international tournaments. S8UL is one of the biggest and premier esports organizations in India, gaining international recognition by winning “Esports Content Creator of the Year” consecutively for three years. This achievement thus is a payback to the organization’s quality and its ability to compete successfully on the world platform, making it an exclusive entity among the top-tiers of worldwide esports organizations.


The recognition that S8uL has garnered at the international level speaks to the hold that the organization has over the fans, not just in India but all over the globe as well, reinforcing its influence and popularity in the esports community. With a roster of about 26 members who all earn out of being involved in esports, S8uL is an exemplifies the growing viability in esports as a promising and lucrative career avenue in India. This victory proves the organisation is doing the right thing and is also a road towards added professional development in esports and, therefore, it can bring a huge satisfaction to millions of players and content creators who are dreaming about such a career. The lately developed esports witnessed an almost unbelievable increase in viewership, sponsorships, and prize pools that might seem to a lot of people to be a type of sustainable industry.


Legal Framework Governing Esports in India:


India’s legal landscape for esports is still in its infancy, and there is nothing like a law that specifically regulates the industry in this country. However, there are several existing laws and regulatory bodies which indirectly affect esports.


1. A Digital law, which now encompasses online activities including online gaming and esports, was originally created in 2000 with the Information Technology Act. However, the Act’s few rules on cybercrimes, data protection, and online content supervision, can be indirectly linked to esports. For instance, the IT Act Section 66D legislation prohibits impersonation of a person with a computer resource. It is interpreted as the use of fraudulent activities in esports.


2. Public Gambling Act, 1867 is a colonial law that prohibits gambling activities in India except for some states where it has been legalised. This Act makes a vital distinction between skill games and chance games, as the ones that admit skill shall be excluded from the prohibition.

In RMD Chamarbaugwala v. Union of India (1957), the Supreme Court of India categorized games of skill and games of chance and decided that gambling in Indian law is not about games that require a significant degree of skill. This decision serves as a precedent for the esports sector, as it may turn out that esports games are legally categorized in a particular way.


Challenges in Regulating Esports:


The quick growth of esports in India has raised a few legal problems to be solved to secure the industry’s sustainable growth. Esports have a lot of online platforms like streaming, chatting, and playing games to facilitate this. The regulation of such online content will include cyberbullying, hate speech, and cheating and preventing these would be a huge challenge. The IT Act and the guidelines set out by the Ministry of Electronics and Information Technology on social media platforms and online intermediaries are crucial in this context. However, the dynamic nature of online gaming asks for even more specific and adaptable regulations. The professionalisation of esports has given rise to the player agreements, which specify employment conditions, reward payment, sponsorship contracts, and other obligations. Notwithstanding, the lack of unified contracts and the absence of legal guarantees for e-athletes may result in them being exploited and conflicts arising. The legality of non-compete agreements, the safeguarding of minors in esports, and the recognition of esports players as professional athletes should be tackled via legal reforms.


The Karnataka High Court ruled that provisions of the Karnataka Police (Amendment) Act, 2021, which sought to make online gaming illegal, are unconstitutional. The Court ruled that the law that banned online gambling was unconstitutional and, therefore, it infringed on the fundamental rights of the individuals. The implications of this ruling can be seen in the case of esports regulation, particularly in those states likely to adopt similar bans.


Esports as a Career:


The concentrated rise of esports in India has been the reason for making an increasing number of people take esports as a desirable career choice. Still, there are several factors that must be considered when assessing the career viability of esports in the Indian context.

Economic Opportunities esports is leading us to a range of economic opportunities including pro-gaming, teaching, video-gaming, streaming. Professional athletes make an exorbitant amount of money. The recent esports teams and organisations boom is increasing the employment opportunities in areas of management and operations. However, the industry is competitive and only few amongst all players achieve significant success. Recognition and Social Acceptance, sports betting which attracts the most attention in this era has, however, its own problems in getting the necessary certificates and social acceptance to be recognised as a normal work.  Many parents and educators in India, on the other hand, consider gaming as a distraction that will take their children away from studies & do not consider gaming as a viable profession.


The shortage of proper education and training programs for esports even worsens this assumption. If the government would approve esports as a sport, it might encourage more individuals to pursue career in esports. The lack of detailed legal framework regarding aspects of esports in India delivers uncertainty to people wanting to construct a career in this industry, Issues like the contracts between players, taxation, and copyright of intellectual property need to have legal reforms to be included in them to provide a stable and friendly atmosphere for esports professionals. Furthermore, the fact that the government is supporting esports through initiatives, it would then fulfil the much-needed support to the industry. Thus, the players physical and mental health is the main question of concern as players must endure long hours of practice and on the other hand are constantly under stress. Esports organisation and players must put the health and well-being of their players first by doing things like regular exercise, balanced diets, and getting help with mental health issues.

 

*The Author is a legal Scholar from India




(The Image used here is for representative purposes only)



References:

1) Bhumika Indulia, Regulation of Esports in India, SCC Times (Aug. 17, 2022), https://www.scconline.com/blog/post/2022/08/17/regulation-of-esports-in-india/.


2) FEAI | Home, https://feai.in/.


3) Esports Awards 2024 | Esports Awards, https://esportsawards.com/previous-winners/esports-awards-2024/.


4) Esports Awards 2024 winners list: Know prizewinner in every category, SportsAdda (2024), https://www.sportsadda.com/esports/news/esports-awards-2024-winners-list.


5) Online Gaming and Regulations in India, LAW Notes (Apr. 10, 2024), https://lawnotes.co/online-gaming-and-regulations-in-india/.


6) Id.


7) RMD Chamarbaugwala v. Union of India, AIR 1957 SC 628.


8) Karnataka High Court Struck Down Online Gambling Ban - Lets Get Legal, https://letsgetlegal.in/karnataka-high-court-struck-down-online-gambling-ban/.


9) (PDF) eSports: Historical Review, Current State, and Future Challenges, https://www.researchgate.net/publication/352808190_eSports_Historical_Review_Current_State_and_Future_Challenges.


10) The world of Esports in India: A new era of digital competition - The Hindu, https://www.thehindu.com/children/the-world-of-esports-in-india-a-new-era-of-digital-competition/article68366532.ece.


11) How viable it is to have a career in esports in India?, https://thebridge.in/esports/how-viable-have-career-esports-india/.

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