Yes it's legal but you need to take necessary income tax permission for the same. Also necessary permissions from RBI and FEMA needs to be taken if you will take foreign currency.

Dear Sir,

The following information may kindly be read:

As far as the governance of Esports industry is the concern, we always envision the industry to be one of the upcoming potential biggest gaming hubs of the world. With that vision in eyes, it also seems to be of utmost importance to bring about a kind of Esports governance system which would be modelled in compliance with all the existing norms of the Sports Code and IOA requirements.

Next, concerning about the Esports players’ contract reviewing section it is simply imperative for the entire legal fraternity to take a stand for the same and get the new generation of digital players acquainted with the very intricacies of contractual clauses in respect to negotiating and exploiting issues.

And last but not the least, Intellectual property issues revolving around this digital gaming sector have already ensured that although there is no direct provision for the protection of Esports IP, India certainly has a basic legislative framework in place to provide protection for its development. As the governance for Esports becomes sophisticated, there might be a possibility to bring in new legislative mechanism tailored to the specificities of Esports.

You can keep such tournaments it is legal though for providing prizes you need to obtain permission from the authority and further then only prize above 1000 rs. Can be given. The registration under prizes compensation act is required.

You will require permission from the income tax authorities.

Yes registration is required. If all documents are clear the RBI shall grant such permission.

In State of Bombay v. R. M. D. Chamarbaugwalal, the Supreme Court  held that competitions (games) where success depends on a substantial degree of skill will not fall into category of 'gambling'  and despite there being an element of chance, if a game is predominantly a game of skill, it would nevertheless be a game of "mere skill"

2) "Games may be of chance, or of skill or of skill and chance combined. A game of chance is determined entirely or in part by lot or mere luck. The throw of the dice, the turning of the wheel, the shuffling of the cards, are all modes of chance. In these games the result is wholly uncertain and doubtful. No human mind knows or can know what it will be until the dice is thrown, the wheel stops its revolution or the dealer has dealt with the cards. A game of skill, on the other hand - although the element of chance necessarily cannot be entirely eliminated - is one in which success depends principally upon the superior knowledge, training, attention, experience and adroitness of the player. 

3) online games, even those requiring a high degree of skill, conducted by gaming sites offering prize money and partaking a slice of the winning hand are illegal in states which prohibit gambling.

Courts in India have also stated that such online gaming portals are essentially a substitute for traditional casinos since websites operate as common gaming houses where members interact and place bets. Thus the company and its directors, agents, players are liable to penal consequences.

Although betting/ gambling remain the matters of exclusive jurisdiction of the applicable State legislature, there are hardly any state laws which clearly classify a game to be a game of skill.

As far as India is concerned, there is no clear regulatory framework that can be looked upon to decide legality or illegality of online poker, online rummy, online card games, fantasy sports, etc. However, there are some very complicated techno legal compliances that are required to be complied with to clear an online gaming or fantasy sports website from legal troubles. Permissions from RBI, FEMA etc. need to be taken before entering into such a venture.

In April 2011, new guidelines for intermediaries
have been notified under the IT Act, which require
the intermediaries like ISPs to inter alia observe
necessary due diligence and publish rules and
regulations and user agreement for access or
usage of the bandwidth provided by the ISP. Such
rules and regulations and user agreement need to
include terms which inter alia inform the users of
the bandwidth not to host, display, upload, modify,
publish, transmit, update or share any information,
that is relating or encouraging gambling, etc.
or otherwise unlawful in any manner whatever.

.

Yes. Registration as well as prior permissions from the requisite authorities such as RBI, FEMA, IT should be required in Maharashtra too.

 You will also need to take prior permission from the development team of PUBG, since all such works are subject to copyright protection in their own individual sense, the use of such copyrighted material in the games without taking adequate permissions / licenses from the owner of copyrighted material can trigger copyright infringement issued under the Copyright Act,
1957.

The provision of the Young Persons’ (Harmful Publications) Act, 1956 assume relevance in your case which makes it an offence to print, publish or otherwise be involved in the printing, distribution or selling
of any publication portraying the commission of
offences, acts of violence or incidents of a repulsive
nature in such a manner as would tend to corrupt
young persons.

It's legal but before contact a local lawyer and obtain permission from local authorities in this regard.. 

As per the latest order of the Supreme Court, it has refused to decide the legality or illegality of online games like poker, rummy, etc. ... Now the ball is in Indian government's court and it has to come up with rules and regulations regarding online game and online gambling activities in India.

While operating gaming businesses is easier in some countries of the world where gaming is legal, the situation is not so easy in India where the laws are stringent.

You cannot register as online gaming with the government authorities, however in the absence of any particular law to restrict the online games, it would be better you take care of FEMA rules an RBI instructions for all the online transactions especially involving foreign currencies.