Chennai Esports Global Championship: The Role of Government Backing for Indian Esports

A decade ago, if you'd told a government official that competitive video gaming would one day receive crores in public funding, they'd probably have suggested you step away from the screen for a bit. Fast forward to 2025, and Tamil Nadu has just allocated ₹4.54 crore for the Chennai Esports Global Championship - making it India's first fully state-funded international esports tournament. It's not just money on the table; it's a clear signal that esports has evolved from a basement hobby to serious business. 

The tournament, scheduled for November at the 8,000-seat Jawaharlal Nehru Indoor Stadium, features Counter-Strike 2 and Battlegrounds Mobile India with international teams competing. But beyond the matches themselves, there's a bigger story here—one where government backing is completely reshaping how brands should view Indian esports. 

Saudi Arabia's Esports World Cup in Riyadh has set the template for state-backed competitive gaming, with the kingdom investing billions to position itself as the global hub for esports. However, the IOC did very recently cancel its 12-year deal with Saudi Arabia to host the Olympic Esports Games, ending the partnership just over a year after it was announced. 

India, on the other hand, has a different kind of esports challenge. Indian teams have consistently underperformed on such international stages, often eliminated early or failing to secure prize money against better-funded, professionally structured teams from Korea, China, and Europe.  

That's precisely why the Chennai tournament matters beyond the spectacle—it's a home-ground advantage that gives Indian players crucial exposure to international competition without the logistical and financial barriers of traveling abroad.  

If India wants to move beyond being a massive audience market to actually producing world-class competitors, government-backed tournaments like this are essential stepping stones. 

From "Just Games" to Official Sport 

The turning point came in 2022 when the Indian government officially recognized esports as a legitimate sport. This wasn't just paperwork—it opened doors to funding, infrastructure, and the kind of institutional support previously reserved for cricket and hockey. 

Things really picked up speed when PM Modi sat down with top Indian gamers like Animesh Agarwal (8Bit Thug), Naman Mathur (Mortal), and Payal Dhare in 2024. Think about that for a second—the Prime Minister meeting with professional gamers to discuss industry strategy. That's not tolerance; that's active courtship. 

Tamil Nadu has taken things even further. The state won the Best State Contribution to E-Sports Award at the GEF Awards 2023, and backed it up by making esports a full medal event in the CM Trophy Games 2025. The ₹4.54 crore championship isn't a one-off experiment—it's part of a deliberate strategy. 

Tamil Nadu isn't playing alone. Meghalaya became the first state to sponsor an esports team, backing Jubilant Divine Esports to transform the state into an esports hub. Meanwhile, Madhya Pradesh launched the Junior BGMI Championship for 12-17 year-olds and established India's first State Esports Academy with year-long coaching programs and plans for a dedicated arena in Bhopal. 

Bihar introduced esports in schools. Karnataka supported collegiate tournaments. At the national level, the Union Cabinet announced a National Centre of Excellence for AVGC-XR in Mumbai, while the Ministry of Information and Broadcasting backed the WAVES Esports Championships 2025.  

All these moves represent the building and support of a budding esports ecosystem in India.  

What This Means for Brands 

Government backing fundamentally changes the game for brands. When states allocate multi-crore budgets and build permanent infrastructure, they're creating stable platforms. Brands can commit to multi-year partnerships knowing these properties will exist—and grow—down the line. 

Partnerships like Garena with UP Government and Krafton with Gujarat show esports pushing beyond metros. Another good sign is Tamil Nadu Deputy CM Udhayanidhi Stalin’s talks about developing talent for the Asian Games and upcoming Esports Olympics. These moves align esports with national sporting ambitions and youth empowerment narratives. Now, states are competing to become esports destinations, opening new markets for brands. 

State support means better venues, production quality, and player development. The Chennai championship expects over 1,00,000 participating gamers and 5,00,000 global viewers—that's scale matching traditional sports. Perhaps most important, government involvement brings clearer frameworks. The establishment of the Online Gaming Authority of India gives brands confidence their investments won't be derailed by sudden policy shifts. 

Smart brands are already thinking bigger than simple sponsorships. Government backing enables: 

• Talent Development: With state-run academies emerging, brands can sponsor scholarships or training facilities, building relationships with the next generation of players and fans. 

• Content Creation: Government tournaments generate massive content opportunities—highlight reels, player documentaries, educational content about competitive gaming. 

• Grassroots Engagement: State backing lends credibility to local initiatives. Brands can partner on school programs, regional tournaments, and talent scouting that builds genuine community connections. 

• Physical Presence: With states building arenas and training centers, brands can explore naming rights, permanent installations, and experience centers beyond single-tournament activations. 

Government involvement doesn't guarantee success: there are a lot more factors at play. Execution matters. Production quality matters. Player skill matters. A poorly run state-backed tournament can hurt esports credibility rather than help it. Brands need strategic patience, not quick-win expectations. 

Time to Play 

The Chennai Esports Global Championship represents more than ₹4.54 crore. It signals that Indian esports has crossed a threshold. From official sport recognition to state-funded international tournaments to PM meetings with pro gamers, the momentum is undeniable. 

For brands, government backing creates a more stable, professional, and expansive ecosystem than existed even two years ago. The opportunity isn't just sponsorship visibility—it's building strategic positions in a sector with institutional support, infrastructure investment, and a clear pathway to international competition. 

The esports train isn't just leaving the station—it's picking up serious speed. And navigating this evolving landscape requires partners who understand both the opportunities and the nuances. That's where Zupotsu comes in.  

As a sports marketing company tracking these trends in real-time, Zupotsu helps brands identify the right entry points, craft authentic partnerships, and capitalize on the government-backed esports boom before it becomes crowded. Because the best time to stake your claim isn't after everyone else has—it's right now, while the ecosystem is still being built. 

Zupotsu is a martech platform on a mission to ‘digitize’ sports marketing. Zupotsu enables the discovery, engagement, and evaluation (the ‘DEE’ framework) for every sports and esports marketing asset. Please sign up at www.zupotsu.com. Follow us on LinkedIn and Instagram. Reach out at ‘marketing@zupotsu.com’ for any queries.