Prominent esports teams such as S8UL, Revenant Esports, GodLike Esports, Enigma Gaming, Global Esports, and others are discussing capping player pay at Rs 2.5 lakh per month, citing the negative impact on team performance during competitions caused by player poaching.

At a meeting last month, owners of up to fifteen esports organizations discussed how paying out large salaries in an attempt to attract the best players is driving many of these organizations into the red.

According to an unidentified organization owner, player poaching is causing a disruption in the commercial economics of esports due to the significant costs associated with bootcamps, training, strategy, branding, travel, nutrition, and mental health.

Monthly spending ranges from 15-20 lakh, depending on the athlete count. Losing even one player not only affects the business strategy but also disrupts gameplay and team morale.

Losing a major player in esports has a greater impact on team spirit than on business, akin to Virat Kohli quitting the Indian cricket team prior to a pivotal match. Team culture is essential for success in esports, particularly since competitors are seated behind screens and rely mostly on the applause of their peers for reinforcement.

Organizations generate revenue through endorsements and tournament prizes. Players disagree with salary caps because they believe they diminish their value, even while organizations gain from their growing appeal. Several athletes utilize social media to express their displeasure about unequal treatment in relation to corporate partnerships and prize money.

Gamers support increasing revenue through high-value brand relationships and creative commercial ventures over payment restrictions in the rapidly growing Indian esports market. Millions of players and viewers are drawn to well-known titles like Pokemon Unite, BGMI, Valorant, Counter Strike, Dota, and Valorant, which fuels the industry's explosive expansion.

Originally held on websites like YouTube, Loco, and Rooter, online gaming championships have developed into massive offline LAN tournaments held in stadiums, much like traditional sports in the West. A record-breaking total prize money of over Rs 30-35 crore was awarded in physical and online tournaments in India's e-gaming history in 2023.