India's Gaming Revolution: From RMG to eSports

With over 500 million digital gamers, India's gaming industry pivots as the 'Promotion and Regulation of Online Gaming 2025' bill recognizes eSports and halts real money gaming. Casual gaming, rising ARPPU, and international expansion become new growth avenues as companies reshape strategies to adapt to shifting dynamics.

In a significant shift for India's gaming industry, the enactment of the 'Promotion and Regulation of Online Gaming 2025' bill on August 22 has reshaped the landscape by prohibiting real money gaming (RMG) while officially acknowledging eSports as a competitive sport. As the nation ascends to be one of the world's largest gaming hubs, industry stakeholders are navigating through notable changes.

Redseer's report highlights the immediate reverberations of this legal transformation. With 80–100 million annual users, RMG was expanding at a 12–15% CAGR before coming to a standstill. The ripple effects extend to associated sectors including digital advertising, sponsorships, and payment infrastructures. However, amid the disturbances, new growth avenues such as casual gaming and eSports are emerging.

Casual gaming and eSports are projected as the next growth frontiers. As government support and recognition bolster this trajectory, the Indian eSports market, currently valued at approximately $40 million, is expected to expand at a 30–35% CAGR. Former RMG entities are exploring diversification into categories like OTT, merchandise, and gamification, while international expansion looks promising, especially with the popularization of Indian titles and sports globally.

(With inputs from agencies.)