After China, India is the second promising country from the Asia Pacific region that can be a game-changer in the iGaming industry. As one of the most dynamic marketplaces, many gaming companies and investors are optimistic about growth in the Indian continent.
That said, days are close when India will be one of the leading iGaming hubs.
Let’s delve into the market trends and predictions to understand the Indian online gaming industry.
Market Statistics and Reports
According to reports, online gaming boomed in India during the COVID-19 lockdown. Many casual and professional gamers started exploring virtual games. In fact, many non-gamers also stepped into the iGaming world for entertainment in the tough times.
Further, a Mobile Premier League (MPL) study shows that an ever-growing number of gamers belong to tier-III cities and towns. Many Indian female gamers are also coming forward in a range of genres. A Think with Google reports that nearly 18% of Indian gaming professionals are female.
Cut to this day, the Indian gaming market is only thriving. As per the study by IBEF, the country recorded revenue of USD 2.6 billion in FY22. The market leaders in the country include Sony Corporation, Nintendo, Electronic Arts Inc., Microsoft, and Rolocule Games Private Limited.
Another report by Lumikai (a gaming media fund) shows that the Indian gaming industry can earn up to $8.6 billion by 2027. Real-money game platforms are the major contributors to this evolution.
This boom in the market also opened doors for game influencers in India. These digital creators already have hundreds of thousands of followers.
Next-Gen Mobile Gaming
Many industry experts anticipate India’s exponential growth in the gaming sector on the back of the ‘mobile first’ phenomenon.
India is the second largest smartphone user in the world. Besides, Indians are one of the most tech-friendly individuals who quickly embrace innovative products and services. Hence, mobile gaming also witnessed massive growth in this region.
According to a Newzoo survey, the prominent Android game apps have millions of Indian users. India is the only global gaming market showing consistent mobile gaming expansion for the past three years. This data indicates that mobile game service providers have lucrative income potential. Thus, globally renowned game developers are willing to dip their toes in the Indian mobile gaming market.
Further, be ready for a turbo-boost in cloud game platforms and mobile casinos. Today, real money gaming enthusiasts can play casino games with a few taps on their phones. The mobile-optimized Betsoft casino games smoothly run on both iOS and Android mobiles. It means you can wager on the go whenever your heart desires.
Regulations on Online Real Money Gaming
Recently, the Indian government set a foundation to regulate online gaming platforms. On April 6, 2023, the Ministry of Electronics and Information Technology (MeitY) introduced new regulations for online real money skill-based games.
This amendment will help regulate betting and wagering at a federal level in the country. This law restricts Indians from real money gambling on luck-based games, with an expectation of winning.
Role of Self-Regulatory Bodies
The Indian government also launched a self-regulatory model to control the iGaming segment nationwide. Gambling platforms can host real money skill-based games only after Self-Regulatory Bodies (SRB) approval. This newly formed Indian gaming authority allows residents to engage in free-to-play and permissible online real-money games.
For instance, Rummy is a popular skill-based game in India. A player must have strategic thinking skills to win this real-money online game. Thus, there’s no restriction for gambling in this gaming genre online.
This initiative is a step towards creating a responsible and safe gaming environment for online gamers. The goal is to protect gamers from gaming addiction, online scams, and financial losses.
Challenges of Indian iGaming Companies
Recently, the Indian finance ministry levied a 28% tax on online real money gaming. It’s a tax implication on gross revenue/total prize pool. On the contrary, the Indian sports ministry officially recognized eSports. This step can bring global recognition to the country during eSports events.
These new and complex regulations spurred a debate in the market about future possibilities. Companies need more certainty about monetizing online gaming services. Hence, assessing the industry’s enterprise-value potential is crucial at this stage.
Indian gaming companies must strengthen their foundations at the grassroots to provide unparalleled experiences to gamers. To sustain the growth momentum, they must also embrace next-generation technologies. It’ll help create a lasting impression on their target audience.
For example, the advent of a high-speed 5G internet connection resolved the latency issues for mobile game developers. It doesn’t just ensure seamless gameplay but also improves the revenue potential for iGaming companies.
FAQs
- How gaming is growing in India?
The Indian gaming market can grow at a 28 to 30% CAGR based on industry insights. Besides, the country will have around 500 million gamers by 2025.
- What is the income of an Indian gamer?
As per the Glassdoor report, the salaries of professional Indian gamers can range from INR 7,47,431 to INR 12,67,125 per year.
- What is the future of real-money gaming in India?
The real money Indian iGaming sector falls under the regulation of MeitY. This regulatory body defines and approves skill-based games for betting in the country. As per Statista, the online gambling market in India can grow at a 7.86% CAGR between 2023-2027.
Final Thoughts
Undoubtedly, things are just starting to get heated up in the country. The governments and gaming companies together are molding a better future ahead. New policies and cutting-edge technologies will only drive the growth of India’s online gaming market.
