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Legality of paid esports tournament platform under PROGA 2025


20-Sep-2026 (In Corporate Law)
I am building a website where users pay an entry fee to join skill-based mobile gaming tournaments (e.g. BGMI/Free Fire) and win cash prizes based on performance. After the Promotion and Regulation of Online Gaming Act (PROGA) 2025 came into force, is this entry-fee plus cash-prize model still legal, or is it banned as an online money game? Is there a legal structure (e.g. free entry with sponsor-funded prizes) I can use instead? I am a student seeking guidance on a compliant model.
Answers (2)

Answer #1
536 votes
If it’s skill based mobile gaming tournaments then you don’t need to worry about any legal consequences. However, I need to know the terms and conditions of your tournament such that i can guide you further.
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Advocate Nitanshu Sharma

Adv. Nitanshu Sharma

LawRato Gurgaon / Gurugram | 200+ Answers
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Answer #2
702 votes
Hi, thank you for your query. Under the Promotion and Regulation of Online Gaming Act, 2025, your proposed entry-fee and cash-prize model may fall within the prohibition on online money games, even if the games are skill-based. However, a free-entry, sponsor-funded prize model may be a viable alternative, subject to the applicable esports requirements and other legal compliances. Before launching the platform, the proposed business model should be examined carefully to determine the applicable restrictions and whether a compliant structure is available. For further legal assistance with assessing your business model and structuring it in accordance with applicable law, you can contact us.
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Advocate Vinayak Jayaram

Adv. Vinayak Jayaram

LawRatoGurgaon / Gurugram | 25+ Answers
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