The number of online gamers in India has reached 442 million, establishing it as the second largest gaming user base globally, surpassed only by China, the industry is also projected to experience a 20% growth by FY25, reaching Rs 253 billion, states a report published by Thornton Bharat and the E-Gaming Federation. The report titled “Guardians of Safe Play: Ethical Gaming for Vibrant Bharat” claims to showcase how a strong code of conduct and self-regulation is important for the sustainable development of this industry.
Furthermore, the report also stated that the real money gaming (RMG) segment is emerging as one of the chief revenue drivers within the industry. With users spending an average of 8.5 hours per week in FY22, this segment is gaining significant traction. Reportedly, in 2023, the RMG sector faced several challenges due to the government’s implementation of 28% GST but investor sentiment remains strong.
Moreover, some notable investments within the industry in FY23 include SBI Mutual Fund’s investment of Rs 410 crore in digital gaming and The Kamath Brothers investment of Rs 100 crore in Nazara Technologies. It is also mentioned that, South Korean game developer Krafton Inc will invest $150 million into Indian startups over the next two to three years. Over the past three years, they have invested about $140 million in 11 Indian gaming and content ventures, including Nodwin Gaming, Pratilipi, KukuFM, and Loco.
The report showcases the importance of third-party certification for fostering self-regulation and maintaining high industry standards. The code of conduct addresses key risks such as cyber threats, regulatory uncertainties, and financial risks, offering practices to mitigate these challenges. Moreover, emphasizing player protection and consumer rights, the report calls for regulatory mechanisms to safeguard players from cyber threats, fraud, and other unfair practices. The report clearly distinguishes between games of skill and games of chance. It provides an overview of legislative milestones, including the Public Gambling Act and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code), which have shaped current RMG policies.
“Trust is the cornerstone of our industry. As India’s gaming industry experiences growth, we must prioritize player safety and responsible gaming practices. This report provides a roadmap for the industry to foster trust, transparency, and sustainability. We believe our self-regulatory standard in the form of a Code of Conduct will help navigate the complexities of the online gaming industry and strike a balance between innovation, consumer protection, and the nation’s interests,” shares Anuraag Saxena, CEO, E-Gaming Federation said.