Amid the blanket ban on real-money gaming (RMG), industry experts opine the focus is now likely to shift to in-app purchases, advertising and subscription-based models—alternative and ‘sustainable’ revenue streams that are already seeing strong traction in the online gaming industry in India.
Currently, non-RMG platforms like casual, free-to-play titles employ this monetisation model unlike RMG, where users need to pay an entry fee to win cash rewards.
Growing power of in-app purchases and player identity
As per a report released by interactive media and gaming VC firm Lumikai in November last year, in-app purchases continue to be the fastest-growing revenue segment with a 41% year-on-year growth. “In-app purchase and ad monetisation already make up 34% of the overall gaming revenue pie and are expected to contribute 60% of overall revenue by FY29 on the basis of 5-year CAGR rates,” said Salone Sehgal, founder and managing partner of Lumikai.
Indian gamers today are making in-app purchases on vanity items such as in-game skins, emotes, and cosmetics because they see them as extensions of their identity.
“Much like sneakers or fashion in the physical world, these digital items carry social value and cultural meaning among gamers. What makes them even more powerful is how real-world brands are being woven into games in authentic ways. When done right, it doesn’t feel like advertising; it enhances the story and strengthens player identity,” said Akshat Rathee, co-founder and MD of leading esports company NODWIN Gaming.
Gamers in India are valuing progression, personalisation, and social connection, whether through unlocking new levels, competing with friends, or customising avatars, over cash rewards, as per Rajan Navani, president of industry body India Digital Gaming Society (IDGS) and founder-CEO of digital entertainment and tech company JetSynthesys. “We’re seeing a mature shift from ‘win-money’ to ‘win-status and experiences’, reflected in the growth of paying gamers and in-app purchases, which include cosmetics, battle passes, and other digital items that enrich gameplay,” he added.
In-app purchases are also fuelling the growth of gaming streaming platforms such as Rooter. “Gamers spend an average of Rs 2,400 on our platform on in-app purchases, contributing 70% of our revenue. With exclusive bundles, seasonal offers, Rooter wallet perks, and events aligned with top publishers, we’ve unlocked strong purchase volumes and new user growth. And it doesn’t stop at in-app purchases; gifting and small subscriptions are also on the rise, powered by fan-to-creator support and embedding microtransactions deeper into India’s gaming culture,” said Piyush Kumar, founder and CEO of Rooter.
When asked whether the ban will further shift the focus of the online gaming industry to casual, free-to-play titles and monetisation mechanics through in-app purchases or advertising, Rohit Agarwal, founder and director of gaming marketing agency Alpha Zegus, said: “100%.”
“If RMG goes off-limits, expect developers and platforms to lean in harder on ad-based and in-app purchase models. Games like Ludo King (with its 70 million monthly users and billion-plus downloads) are already living proof that casual, free-to-play games can scale massively and monetise through ads or small in-app purchases,” he said, adding: “In-app purchases, with their 41% y-o-y growth, will likely become the monetisation engine in the post-RMG world.”
New era for developers and investors
Anurag Choudhary, founder and CEO of Felicity, an AI-enabled game publisher, said he expects to see more developer attention and investor confidence flow toward models that are sustainable, transparent, and player-first, whether through in-app purchases, advertising, or innovative subscription mechanics. “Ultimately, monetisation that feels aligned with player enjoyment will define long-term winners, not formats built purely around financial returns,” he added.
Harish Chengaiah, founder of Chennai-based independent game development studio Outlier Games, said it will all depend on how the regulatory landscape evolves. “If the ban is challenged in court and a ruling in favour of gaming companies reverses the ban in favour of a stricter regulatory framework, real money games could return. But assuming the prohibition stays, the industry will likely pivot toward alternative monetisation models,” he said.
One promising direction, as per Chengaiah, is loyalty-based rewards programmes—similar to what we see on Google Pay and other apps—where players earn redeemable discount coupons on retail products based on their performance and progression in games. “This avoids wagering or financial loss while still rewarding engagement. At the same time, in-app purchases and advertising-led models are also gaining steady traction and will likely become more central to the ecosystem,” he added.
However, some observers said such shifts will be small, if at all. “Indian players will continue to play the games they enjoy… Such bans will simply take away the business of Indian platforms and hand it on a platter to illegal offshore (mainly Chinese) platforms,” said Amrit Kiran Singh, president of the Skill Online Games Institute (SOGI).
Meanwhile, shortly after Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, several gaming companies and startups such as Dream 11, Mobile Premier League (MPL), WinZO, Head Digital Works, PokerBaazi, Probo and Zupee have shut down their real-money gaming operations.