More Indians are Paying for Games

The Covid-19 pandemic accelerated India's online gaming, with time spent on games increasing significantly because virtual zones turned into socializing, competing, and connecting avenues. Despite people returning to work and school, the interest in online gaming has remained robust, as shown by the rising spending. This has led to more revenue. A report from the Federation of Indian Chambers of Commerce & Industry (FICCI) and Ernst and Young (EY) indicated that online gambling revenue rose by 28%.

The report found that the number of Indian gamers paying for online games grew from 80 million in 2020 to 95 million in 2021, translating to a 17% increase. The number of online gamers saw an 8% increase from 360 million to 390 million. This number is expected to surpass 450 million by 2023.

Over the years, the increase in online gambling amongst Indians increased revenue from Rs79bn in 2020 to Rs101bn in 2021. Popular gambling options include Indian online roulette games and cricket betting. The income from India's online gaming market is expected to reach over 153 billion rupees by 2024.

Sales from transaction-based games rose 26% due to attraction to real-money games, including fantasy sports and rummy. E-sports and casual revenue grew 32% due to increased in-app purchases.

The FICCI and EY report indicated that in-app purchases rose 40% from Rs 5.5 billion in 2020 to Rs 7.7 billion in 2021. Esports revenue also increased from Rsbn 7.5 billion in 2020 to Rs 9.7 billion in 2021. The report added that advertisement revenue grew from Rsbn 7 billion in 2020 to Rs 8.4 billion in 2021.

A survey on India's online gaming industry revenue 2017-2024 showed that most Indians played a kind of digital daily. Sports and shooter games were popular among men.

However, Indian women favored adventure and strategy games. The survey also found that the affordability and rapid penetration of smartphones plus cheap mobile data resulted in them being the most used gaming devices. India's mobile gaming industry value was estimated to reach almost 405 million USD by 2022, marking a significant rise in its market value from around 266 million dollars in 2016.

Nearly two-thirds of India's online gaming industry comes from the pay-to-play format. According to Roland Landers, All India Gaming Federation (AIGF) CEO, the pay-to-play games in India account for 75 to 80% of the industry's overall revenue, which is $2.8 billion.

Ashish Pherwani, EY India entertainment head, noted that the increase in online gambling spending was due to regular players spending more time gaming and a rise in the number of new gamers in the Indian market. He added that the factors contributing to this include remote learning, which led to the addition of new gamers, the inception of new gamblers in tier 3 cities, and a rise in serious and mid-gamers' spending capacity.

The increasing popularity of online gaming has thrown the limelight into the industry. Huge money losses have made gamers more cautious while bringing the sector under government scrutiny.