The 2023-24 financial year saw a dramatic growth in India’s online gaming industry. The 23% YoY (year-on-year) growth led the industry to stand at a valuation of 3.8 billion USD. This sets the stage for the targets that the Indian Gaming Market is poised to achieve.

The biggest contributor to this revenue is in-app purchases with their 41% YoY growth. Further, iGaming made up 2.4 million USD, a significant portion of the revenue.

The Current Landscape of Online Gaming in India

Both online video games and iGaming is a growing industry in India. The following figures reflect the growth and targets set for this sector:           

Growth of Online Gaming and iGaming

A 2024 figure by Statista reflects that Video Games enjoyed a 4.42 billion U.S. dollars market in India. Globally, the online gaming industry is poised for a 4.87% growth from 2025 - 2029. For India, this figure is almost two times the global value with 10.16% growth from 2025 - 29.

Further, iGaming is projected to reach 1.01 billion USD by 2025. To add, estimates state that iGaming will grow 4.19% from 2025 - 29 to reach 1.19 billion USD. These figures speak for 13.2 million users, a 2029 estimate.

Both estimates speak volumes about how rapidly the internet gaming sector is transforming.

iGaming’s Role in the Broader Online Gaming Ecosystem

iGaming covers a lot of ground in the online gaming industry- encompassing fantasy sports, online Rummy and poker, esports, and other online games. Being the sector of the gaming industry that yields real rewards, iGaming is sought after by competitive gamers.

To add, most factors that drive the online gaming industry boost the iGaming sector as well. Thus, with growth in online gaming, iGaming is also making advances.

Technological Advancements and Their Impact on Gaming

One of the prime reasons why the online gaming industry is growing rapidly is evolving technology. The contributing factors are:

5G Connectivity and Enhanced Gaming Experiences

With faster internet speeds, players can enjoy a seamless gaming experience. Further, with cloud gaming, players can access the games from anywhere and even without downloading the app. To add, with low latency and stable connections, you can enjoy high-quality streaming and responsive gameplay.

AI and Personalization in Gaming

From predictive recommendations to personalized gameplay, AI is an easy tool for improving the gaming experience. With the help of AI, developers can design the platform to provide curated gaming content, deploy real-time changes, design better NPC, and more.

Further, AI prompts can keep a check on player behavior to ensure fair play, safe gaming practices, and engagement.

Blockchain and Tokenization in iGaming

Data and transaction security is a top concern in iGaming platforms and in the case of in-app purchases. Opting for blockchain and tokenization creates a safer ecosystem for players. This, in turn, boosts the confidence of players in the platform.

Consumer Behavior and Changing Demographics

The second reason why online gaming has shown consistent growth is the change in consumer interests. This can be better explained in the following terms:

Shift in Gaming Preferences: Millennials and Gen-Z

Among millennials, action-adventure games and first-person shooter games were more popular. While engaging, these offered more in the form of peer competitions and tournaments than rewards.

In contrast, the GenZ population is looking for more rewarding outlets. This is one of the biggest reasons why iGaming is growing rapidly.

Increasing Interest in iGaming Among Casual Gamers

With higher chances of rewards, casual iGaming platforms are turning into a preferable leisure activity. Thus, the multiple apps catering to fantasy sports, skill-based games, and more are gaining a fair amount of user traffic.

Plus, by using a rewards system, these platforms apply an effective client retention strategy that helps keep up their number of users.

Regulatory Landscape and Legal Challenges

To keep their business running smoothly and within legal bounds, all companies have to adhere to certain norms. For online gaming, the regulatory landscape is as follows:

Online Gaming Regulation: A Mixed Bag

The two laws that govern the online gaming industry in India are:

• Public Gambling Act, 1867
• Information Technology Act, 2000

Both of these aim to ensure that players enjoy a safe gaming experience and that their interests stay protected.

However, online gaming is a matter of the State List. Thus, various states in the country have their own laws vis-a-vis online gaming. This is better observed in iGaming.

iGaming and Legal Uncertainty

In certain states like Assam, Odisha, Telangana, Andhra Pradesh, and Gujarat, there is a strict ban on iGaming platforms. However, in Karnataka, West Bengal, Nagaland, Sikkim, and Goa, iGaming platforms enjoy no such restrictions.

Thus, it is essential for these platforms to be well-versed in the laws and regulations of every state they aim to operate in. Further, the legal recognition from the Supreme Court of India as games of skill is a step in the right direction.

Opportunities for the Future: How India Can Lead in Gaming by 2025

To add to the positive growth projections, some of the steps to take can be as follows:

Expanding Fantasy Sports and iGaming Integration

A version of real games where people make a team of their favourite professional players to compete against their peers is Fantasy Sports. With a relatable experience, Fantasy Sports offers an excellent outlet for gamers.

Further, when integrated with iGaming, Fantasy Sports become a rewarding way to pass the time.

Localized Content and Game Offerings

In simple terms, this comes in the form of offering cricket in India, basketball in the USA, and football in Europe. Thus, it implies offering specific games in regions where they are relevant.

This act helps tailor suggestions, thus providing players with a more relevant gaming experience. In turn, this gives a boost to user engagement.

Cross-Promotions between Traditional Gaming and iGaming

Turning popular games into their online versions allows players to enjoy a game they are familiar with. Not only does this add a nostalgic touch, but it also helps draw more traffic to the portals.

Challenges to Overcome: Ensuring Safe, Inclusive, and Fair Play

When using online gaming platforms, data safety and fair play are sincere concerns among players. These are further escalated due to an increase in cases of cyber fraud, cases of online bullying, privacy issues, and more.

To overcome these issues, developers and gaming platforms need to take up the following:

Responsible Gaming across Online Games and iGaming

Gaming platforms can do the below to create a more client-safe environment:

• Set limits on in-app purchases per session.
• Design safe transaction mechanisms for rewards, in-app purchases, and others.
• Set limits on the number of games a player can join in a given session.
• Make the gameplay such that the prompts take an ethical and empathetic approach.

Tackling the Usual Cybersecurity Threats

Like all online platforms, gaming platforms are not free of cyber threats. In contrast, due to the fact that they store client data, they are at a higher risk of cybersecurity issues.

To manage this, the gaming platforms can try the following:

• Use prompts and checks to flag suspicious behavior.
• Put checks on player conversations to flag any incidences of cyberbullying.
• Establish a fair and transparent gaming system.
• Implement a safe transaction system with blockchain.

To Conclude: The Evolving Indian Online Gaming Landscape

Projections state that the Online Gaming Industry is set to achieve high growth keeping in line with its previous trends. Thus, there is a fair chance that the industry will outperform its predicted CAGR.

For better, more interactive platforms, developers need to take a client-first approach. Regular feedback and reviews are a good way to gain insights. In turn, this will lead to a user-friendly gaming platform.

With innovations in technology and changes in consumer behavior, the online gaming industry is set to meet new milestones in 2025.