Central Regulation of Online Gaming Will Boost India’s Digital Industries, Analysis Points Out

Fragmented State legislation overlooks the growth of online gaming and related digital and mobile industries, studies show. A national regulation with progressive standards will allow tech industries to grow and affirm India as a global digital factor.

The Scope of India’s Online Gaming Market

The digital transition in Bharat has been supported by Centre for a number of years, most recently with the Digital India initiative gaining speed. However, as prominent investment consultancies warn, certain sub-sectors have been ignored despite their size and growing importance.

Digital games have gone a long way from being the pastimes of elites, played on consoles and expensive computers. Today, online gaming is big in India, especially with the boom in mobile phone use and widespread internet coverage. The Union online market is second in terms of game app downloads and stably in the Top 5 of World’s mobile gaming nations. With currently over 400 million users playing online casino, lottery, fantasy sports, roulette games online or casual mobile games, industry experts expect this number to rise above 600 million by the end of next year. Maple Capital Advisors estimate India’s online gaming market to be worth nearly $ 4 billion by 2024.

The 18 to 24 age bracket accounts for more than half of online gamers, according to investment advisors, and fueling the sector growth. Funding has also been on the rise, with $ 550 million in the first half of 2021, roughly the FDI that was injected between 2014 and 2020. As a result, gaming studios and tech startups in the sector grew to more than 400 from mere 20 in the early 2010s.

Tier-1 Cities and Wealthy States Driving up the Digital Sector

Another factor for the rise of online gaming among desi entertainment options is the level of overall economic development, an in-depth research into gaming communities reveals. States and urban areas with better income levels and particular social habits contribute up to two-thirds of all online gamers.

The most influential gaming communities come from the leading six metropolitan areas, all Tier-1 cities. Urban habits have also been changed lately, as people have spent more time at home after a series of Covid-related lockdowns. This has also been a boost for the online gaming industry, with people spending more time playing as part of their daily routines.

The Legal Conundrum

One of the few significant obstacles to the digital business climate is the hazy legal environment. The seemingly clear definition of “skill-based” games as the only legal category has always been left open to interpretation. Outdated laws – and Court decisions – classify poker and rummy as skill games while teen patti and andar bahar are not. One can play real-money games on fantasy sports platforms and bet on the performance of a selection of athletes, while teams are out of the question as sports betting is still illegal in India.

States are left with the power to decide their stance on gambling, betting and other online and offline games. But without a Central-level regulation and a set of clear standards, the industry is destined to stagnate without fulfilling its true potential.