The recently enacted Promotion and Regulation of Online Gaming Act, which banned online real money games, has come as a major boon for the video game industry as it removed the long-standing ambiguity between video games and those that promote betting or gambling, according to the Game Developers Association of India (GDAI).
According to the representative organisation of video game developers, the policy clarity will also open up greater funding opportunities for the domestic industry, which is expected to grow tenfold to $10 billion by 2035.
“Gaming has always meant video gaming, but real money gaming had taken up so much bandwidth that the two became synonymous in India,” Manish Agarwal, board member, GDAI, told FE on the sidelines of the 17th India Game Developer Conference (IGDC) in Chennai on Wednesday.
The country’s largest and longest-running game industry event is hosting over 10,000 participants, including developers, publishers, investors and policymakers.
Agarwal said the legal separation between video games and real money gaming is already having a positive impact. “For the first time, the government is seriously engaging with video gaming — looking at IP creation, industry collaboration and even cultural content exports,” he said.
The Centre enacted the law in August to curb addiction and financial risks from money-based online games while promoting and regulating other categories such as e-sports and social gaming. The law lays out a national regulatory framework, sets penalties for violations, and aims to encourage ethical growth in the online gaming ecosystem.
Several real money gaming platforms have challenged the law, claiming it violates the right to equality, freedom of expression and the constitutional distinction between games of skill and chance. The Supreme Court has since transferred all related petitions to itself and has been hearing the matter since September 8.
Agarwal said policy instability remains a key concern for developers. “If a sudden directive bans shooting games or mandates certification for all titles, it could severely impact small studios,” he said, adding that GDAI is working to mitigate such policy shocks.
He identified three pillars critical for India to become a global gaming powerhouse — skilling, patient long-term capital and policy stability. India, he said, already has strong investor interest with about $200 million in gaming-focused funds and several early-stage venture capital firms looking to invest in billions.
According to GDAI Chairperson Sridhar Muppidi, India’s domestic gaming market could expand tenfold to $10 billion by 2035, while exports present a $230-billion opportunity. Although per-user spending in India remains low compared to Western markets, the country’s massive user base offsets this gap.
“India has over 500 million gamers today, of which around 5% pay for games. As incomes rise, both that share and average spending will increase,” Muppidi said, adding that advertising and export markets will further drive growth.
TN to release AVGC-XR policy
The Tamil Nadu government will soon unveil its AVGC-XR (animation, visual effects, gaming, comics, and extended reality) policy, Information Technology and Digital Services Minister P Thiaga Rajan said on Wednesday. In the works for two years, the policy will focus on four areas — education and skilling, infrastructure, ease of doing business, and financial incentives with inclusion goals.