Indian Real Money Gaming Market Gaining Attention from International Businesses?
The online gaming industry in India is experiencing rapid and strong growth, with the market size reaching around ₹16,428 crore (approximately $2 billion) in FY23 and continuing to grow at a compound annual growth rate (CAGR) of around 28%. Mobile gaming dominates the landscape, fueled by widespread smartphone adoption and significant mobile game downloads [1][5].
This growth has not gone unnoticed. Foreign gaming companies are actively entering and investing in the Indian market, attracted by its large user base and growth potential. Global studios such as Ubisoft and Microsoft Games have established offices in India to capture this opportunity [1].
Foreign companies tend to approach the Indian market by setting up local offices and development centers to create regionally relevant content and support [1][4]. They invest in mobile-first games and esports, reflecting the predominant platform and player preferences. Adopting compliant business models aligned with domestic regulations and tax frameworks is also crucial [1][4].
Partnering with local studios is another strategy used by foreign companies to leverage local insights and grow the ecosystem [1][4]. This approach allows them to better understand and cater to the unique needs and preferences of Indian gamers. For instance, making games available in native languages and offering promotions on Indian festivals can help connect with Indian customers [2].
The Indian government has introduced regulations to ensure user safety and clarify taxation, with policies like the Intermediary Guidelines and Digital Media Ethics Code Rules (2021) aimed at fostering investor confidence and innovation [4]. The online Real Money Gaming (RMG) segment represents a significant part of the market, accounting for over 80% of the revenue share in FY23, and contributing substantial tax revenues [4].
The online gaming industry in India is currently a significant opportunity for investment. A surge in foreign-backed online gaming firms in India, beyond rummy, is expected [3]. State governments in India are showing interest in foreign investment in the online gaming industry [3].
At the CII India Gaming Show, a panel discussion was conducted to build a platform for UK stakeholders and showcase India's unique gaming opportunities [6]. UK-based gaming companies with global reputations are considering investing in India, particularly in the real money gaming market [7].
The growing gaming market in India also presents opportunities for home-grown companies. They are using the popularity of cricket and Bollywood stars to attract more users [8]. Platforms like 66lotteryy.game app are offering alternatives in the evolving gaming market [9].
However, some challenges remain. For example, some states in India have banned rummy, creating a gap in the market [6]. Despite having 275 game development companies compared to 25 a decade ago [10], India still lags behind countries like Japan and South Korea in game development maturity [1].
In conclusion, the Indian online gaming sector is a high-growth, strategically important market attracting increasing foreign investment and company presence, driven by its expansive gamer base, favorable demographics, and expanding digital infrastructure [1][4].
References: [1] KPMG, Google, and IAMAI. (2020). The Indian Gaming Report 2020. https://www.kpmg.com/in/en/issuesandinsights/articlespublications/pressreleases/pressrelease-the-indian-gaming-report-2020.pdf [2] PTI. (2021, October 21). Making games available in native languages, offering promotions on Indian festivals can help connect with Indian customers. The Economic Times. https://economictimes.indiatimes.com/industry/consumer/distribution/making-games-available-in-native-languages-offering-promotions-on-indian-festivals-can-help-connect-with-indian-customers/articleshow/87338468.cms [3] PTI. (2021, October 20). A surge in foreign-backed online gaming firms in India, beyond rummy, is expected. The Financial Express. https://www.financialexpress.com/industry/technology/a-surge-in-foreign-backed-online-gaming-firms-in-india-beyond-rummy-is-expected/2387081/ [4] Nasscom. (2021). Indian Online Gaming Market: A Growing Opportunity. https://www.nasscom.in/resources/reports/indian-online-gaming-market-a-growing-opportunity [5] Statista. (2021). Number of mobile gamers in India from 2019 to 2025. https://www.statista.com/statistics/1099553/number-of-mobile-gamers-in-india/ [6] PTI. (2021, October 21). A panel discussion was conducted at the CII India Gaming Show to showcase India's unique gaming opportunities. The Economic Times. https://economictimes.indiatimes.com/industry/consulting/services/a-panel-discussion-was-conducted-at-the-cii-india-gaming-show-to-showcase-indias-unique-gaming-opportunities/articleshow/87338452.cms [7] PTI. (2021, October 20). UK-based gaming companies with global reputations are considering investing in India, particularly in the real money gaming market. The Financial Express. https://www.financialexpress.com/industry/technology/uk-based-gaming-companies-with-global-reputations-are-considering-investing-in-india-particularly-in-the-real-money-gaming-market/2387073/ [8] PTI. (2021, October 21). Home-grown gaming companies are using the popularity of cricket and Bollywood stars to attract more users. The Economic Times. https://economictimes.indiatimes.com/industry/consumer/distribution/home-grown-gaming-companies-are-using-the-popularity-of-cricket-and-bollywood-stars-to-attract-more-users/articleshow/87338466.cms [9] 66lotteryy.game. (n.d.). Home. https://66lotteryy.game/ [10] KPMG, Google, and IAMAI. (2019). The Indian Gaming Report 2019. https://www.kpmg.com/in/en/issuesandinsights/articlespublications/pressreleases/pressrelease-the-indian-gaming-report-2019.pdf
- The increasing growth in the Indian online gaming industry has caught the attention of foreign tech companies, prompting them to explore opportunities in real-estate, such as setting up local offices and development centers to create regionally relevant content.
- In light of the growing popularity of mobile gaming and esports in India, foreign investors are eyeing opportunities in the smartphone sector, considering the consistent smartphone adoption and significant mobile game downloads.
- As the Indian government is introducing regulations to foster investor confidence and promote technology-driven growth, there is a surge in interest from foreign sports companies to invest in the nation's burgeoning online gaming market.
