1. A Surge Fueled by Smartphones, Connectivity, and Youth
Over the past decade, India has witnessed an extraordinary rise in online gaming. The primary catalysts:
Smartphone penetration: Affordable Android devices have enabled access to gaming for millions across urban and rural India.
Cheaper Internet & wider connectivity: With mobile data costs among the lowest in the world, and expanding 4G/5G networks, users enjoy smoother, more immersive gaming experiences.
Young and digitally native demographic: Nearly half of India’s population is under 35. Gaming has emerged as a mainstream form of entertainment among this generation.
2. Market Size & Economic Potential
India's gaming sector has grown at a remarkable pace:
EY reports show a compound annual growth rate (CAGR) of ~28%, with the market reaching ₹16,428 crore (approx. USD 2 billion) in FY23. Projections estimate it may grow to ₹33,243 crore by FY28.
Another study estimates that by 2028, the online gaming market could reach ₹66,000 crore, growing at ~14.5% CAGR between 2023 and 2028.
IBEF cites that gaming revenue stood at USD 2.2 billion in 2023, expected to increase to USD 8.6 billion by 2028.
This growth directly boosts ancillary sectors—fintech, cloud services, data analytics, cybersecurity—and generates employment. EY projects up to 250,000 jobs by 2025.
3. Genre Diversity: From Casual to Competitive
The Indian gaming landscape spans a wide range of genres:
Mobile gaming dominates, thanks to ease of access.
Popular genres include casual games, strategy, and shooters—showing strong monetization via in-app purchases.
Esports (competitive multiplayer) is gaining traction, with tournaments supported by streaming platforms, sponsors, and growing social engagement.
Iconic titles like Ludo King have reached 1 billion+ downloads, bringing board games into mainstream digital play.
Platforms like WinZO and Zupee, offering skill-based games and vernacular support, are attracting users from Tier 2 and 3 cities.
4. Regulation: A Shifting Landscape
One of the most significant developments in 2025 is the enactment of the Promotion and Regulation of Online Gaming Act, 2025:
This law introduces a uniform regulatory framework, establishes a National Online Gaming Commission (NOGC), mandates licensing, combats fraud, and promotes user protection.
Crucially, the Act bans “real-money gaming”, effectively outlawing many fantasy sports and paid skill games.
The ban has had immediate impact: platforms like Dream11, MPL, and others have had to halt real-money operations. Dream11 reportedly lost 95% of revenue overnight.
MPL announced layoffs of nearly 60% of its India-based workforce (~300 employees).
Operators like A23 (with over 70 million users) are challenging the law in court, arguing that skill-based games have been wrongly criminalised.
5. Challenges Ahead
Despite booming user numbers, the industry faces multiple headwinds:
Regulatory ambiguity and legal risk: With the new national law and differing state positions, business models must pivot fast.
Revenue disruption: Real-money gaming platforms face revenue collapse and shrinking investor confidence.
Operational costs: The new law increases compliance costs—licensing, tax, internal fraud controls, KYC/AML protocols.
Infrastructure gap: High-end PC/console gaming and cloud gaming still lag due to infrastructure and cost barriers.
Health and social concerns: Addiction, screen time, and youth mental health remain legitimate issues warranting public scrutiny and responsible design.
6. Bright Spots: Innovation, Localisation, Education
Even amid uncertainty, there are positive avenues shaping the future:
Skill-based and free-to-play models: Many platforms are transitioning to ad-supported or freemium models.
Local content and regional languages: Developers targeting Tier 2/3 India with games in vernacular languages have found new user segments.
Institutional recognition: Some educational and vocational institutions are beginning to offer programs in game development and esports.
Emerging technologies: Cloud gaming, AR/VR and the creator economy promise immersive engagement and new monetization models.
Consumer protections: Regulations like the new Act can help stem fraud and misuse—if implemented sensibly—to build user trust and sustainable growth.
7. What the Future Holds
India's online gaming industry is clearly at an inflection point:
If developers and platforms adapt to a freemium-plus-advertising model, and innovate with regional content, deeper engagement can still thrive—even without real-money monetization.
Gaming could become a major employment and startup driver, especially if upgrades in infrastructure (5G, cloud) and skills training materialize.
Esports, game development studios, platforms funding local talent, and gaming infrastructure (like arenas, studios, hubs) can emerge as new pillars.
Over time, a balanced regulatory environment—protecting users while encouraging creativity—can restore growth. —This would require ongoing dialogue between industry, government, and civil society.
Conclusion
India’s online gaming industry has seen phenomenal expansion, reaching nearly ₹16,400 crore in FY23, powered by affordable internet, smartphones, young demographics, and legalized forms of play. Yet, the 2025 law banning real-money gaming presents real challenges: revenue loss, layoffs, legal uncertainty, and disrupted business models. Platforms must now pivot to legal – compliant, sustainable models that embrace freemium, regional content, and creative experiences beyond betting.
The future is not bleak—opportunity still abounds, especially for brands that invest in immersive, localized games, developer communities, education, and trust-building. Real momentum awaits for those who innovate responsibly.
Check out Starclash for exciting developments in gaming.
