India’s online gaming industry is rapidly transforming into a thriving sector within the country’s digital economy. As a dynamic and growing field, it is shaping new opportunities, driving innovation, and captivating millions across the nation. The Indian online gaming industry has expanded to 488 million in 2024, with an addition of 33 million new gamers, including both casual and real money gamers, across all devices, says the latest Ficci EY Report titled “Shape the future: Indian media and entertainment is scripting a new story.”
However, the imposition of a 28 per cent GST on deposits received by transaction-based gaming platforms, and TDS on winnings, has led some users to migrate towards illegal and offshore platforms which continued to operate and advertise in 2024. Despite these challenges, the number of online gamers in India is projected to reach 517 million by 2025, and is expected to keep growing at a five to six per cent CAGR till 2027.
The FICCI EY Report was launched on 27 March 2025. The report revealed that the Indian online gaming sector t is projected to grow at a CAGR of 10.8 per cent over the next three years, reaching Rs 316 billion by 2027.
Nazara Technologies CEO Nitish Mittersain commented, “The era of Indian gaming has dawned. With a vibrant pool of innovative talent, a booming digital culture, and a strong focus on AI-driven game development, India is perfectly positioned at the cusp of a breakout, captivating global players in the coming years and cementing its status as a thriving hub in the international gaming landscape.”
Here’s an overview of what took place in 2024:
1. Online gamers grew by seven per cent in 2024
- During the year, more than 155 million gamers engaged with real money gaming (RMG) sub-segments such as fantasy sports, rummy, poker, and other transaction-based games, registering a 10 per cent year-on-year growth and it is estimated that 110 million people play games daily.
- The increase in number of gamers was primarily driven by factors such as growth in smartphone penetration, low data costs, launch of games in regional and vernacular languages, a packed cricket calendar with major cricketing events like the IPL and ICC World Cup in the first half of 2024, and increasing disposable income.
- The return of BGMI helped to bring back casual gamers to one of their favorite games that was missing in 2022 and parts of 2023.
2. The scope of gaming widened
- Gamification in shopping and entertainment also gained momentum in India:
- E-commerce platforms and brands increasingly incorporated interactive elements like spin the wheel rewards, quizzes, and challenges to enhance user engagement and build loyalty.
- Sports and entertainment broadcasters used gamification to increase stickiness, and we estimate that over 100 million viewers played quiz, predictive, etc. games during 2024.
- Opinion trading games which cover a variety of themes like sports, entertainment, economy and politics also gained popularity.
3. Simulation games were most downloaded
- The number of game apps downloaded by Indians was 8.5 billion at the end of 2024, a drop of 11 per cent.
- Simulation games remain the most downloaded category, followed by arcade, puzzle and tabletop games, reflecting their broad appeal and easy accessibility:
- Simulation and hyper-casual games attract audiences across different demographics and geographies due to their simple gameplay mechanics, which require minimal skill and low time commitment. This accessibility makes them appealing to both casual and new gamers.
- On the supply side, the relatively low cost of game development for hyper-casual titles enables developers to rapidly produce and release games. This efficiency encourages a continuous stream of new games, further fueling the category’s growth and appeal.
- Regular content updates, linkages to film stars and cricketers, seasonal events and immersive gameplay have helped sustain player engagement. In action games, the inclusion of competitive elements drove long term involvement and increased downloads, while the creative freedom in simulation games encouraged deeper player investment and a loyal user base.
Monetisation:
- Overall, online gaming revenues remained largely flat in 2024 due to the impact of the GST make-good that transaction-based gaming companies absorbed into their margins.
- In fact, there was growth at a gross revenue level for most gaming companies we interviewed.
- Esports and casual games continued their steady double-digit growth that the segment has been seeing over the past few years.
1. Transaction-based games revenues dropped to Rs 179 billion in 2024
- Revenue from transaction-based games fell by six per cent in 2024 on a net basis, following the implementation of 28 per cent GST on game deposits, which came into effect from October 2023.
- To minimise disruptions to player experience and retain the players, platforms strategically absorbed the GST impact. Consequently, while these platforms grew their revenues in 2024, their revenues net of the GST makegood were down.
- Absorbing the tax impact had a considerable effect of around 20 per cent on the toplines and profitability of platforms in this segment for all of 2024, compared to three months in 2023.
- Larger players navigated this challenge, leveraging their resources to absorb the impact while smaller players struggled to sustain operations. This disparity led to shutdowns among smaller platforms, and drove consolidation (e.g., Nazara’s acquisition of a significant stake in PokerBaazi’s parent company).
- This, combined with the growing prevalence of illegal and offshore platforms, hindered the overall growth of the sub-segment by diverting users and revenues away from Indian regulated operators. It is pertinent to note that such platforms have been continuously ramping up their ad spends, misleading consumers by falsely claiming exemptions from GST and TDS, enticing them to participate.
- Rummy and poker saw a comparatively smaller decline in revenue than fantasy sports, driven by two key factors:
- Gaming companies were able to increase game play and inter-game play, by incentivising more plays, reducing/ limiting payouts, etc. so that spin rates increased and players stayed invested for longer and across more games.
- Increasing awareness of poker, particularly among younger gamers in non-metro cities, contributed to a broader player base.
- The growth in ‘other participation fee games’ was largely driven by the surging demand for real money Ludo games:
- Allinone Hax’s “Ludo Players” platform quickly surpassed over one million registered users, establishing itself as a top skill-based Ludo platform within a short span.
- By introducing creative and competitive gameplay formats, the platform successfully attracted skilled and competitive players, further solidifying its position in the market.
- Gaming companies adapted to the adverse impact of GST on margins by pivoting their business strategies to build more sustainable operations. Key shifts included:
- Multi-sub-segments strategies: Leading platforms (such as MPL, Winzo, etc.) diversified their presence across multiple sub-segments, leveraging these platform ecosystems to enhance spin rates and drive user engagement.
- Reducing CAC: Focused efforts on optimising marketing budgets, from leading players such as Dream 11, Games 24×7, MPL, etc., helped lower customer acquisition costs, ensuring more efficient spending
- Market diversification: Platforms are exploring international markets and non-RMG gaming opportunities to broaden their revenue streams and mitigate risks associated with the domestic regulatory environment, as seen with M-League’s 2024 launch of Blast+, their publishing arm that aims to help independent game developers across the world publish and scale their games in India.
2. Casual games grew by 20 per cent in 2024
In-app purchases
- A full uninterrupted year of BGMI significantly contributed to the growth of in-app purchases, along with the growth in smartphones to over 560 million in 2024.
- By removing entry barriers, F2P games foster high engagement, while monetisation through in-app purchases and ads ensures sustained revenues for them.
- From a genre perspective, shooting games remain the highest monetised category:
- BGMI followed by Free Fire were the top-grossing games of 2024, dominating the market in terms of monetisation. Another popular shooting game, Call of Duty: Mobile, secured a spot in the top 10 rankings, further highlighting the genre’s appeal and revenue potential.
- Several made-in-India shooting games, such as Underworld Gang Wars (UGW), Fearless and United Guards (FAU-G) are nearing their launch. These titles are expected to further strengthen the shooting game genre.
- Clash of Clans and Whiteout Survival lead the strategy genre, securing its position among the top three most popular genres. Meanwhile, the match genre follows closely in fourth place, dominated by fan-favourites such as Candy Crush Saga and Royal puzzle.
Advertisement
- Advertisement revenue experienced a steady growth of 10 per cent in 2024. Casual and hyper-casual games, with their high download volumes, emerged as popular platforms for brands to engage with younger, upwardly mobile audiences across Tier I, II and III cities.
- Many hyper-casual and casual game developers increasingly adopted advertising as their primary revenue streams, seamlessly integrating native and video ads into gameplay, as well as brand integrations.
- Ad-yields and e-CPMs in gaming continued to trail behind traditional digital platforms like OTT or social media, reflecting the relatively nascent stage of monetisation in the gaming sub-segment and its distinct audience engagement dynamics.
Esports
- The portfolio of games remained largely unchanged from the previous year, with no new titles achieving significant breakout success; however, participation in tournaments crossed two million for the first time, and the number of professional esports teams reached 36.
- The number of live and other broadcast hours reached 7,400 across 15 platforms.
- Game streaming saw a boost with the return of BGMI but faced challenges from the end of FIFA’s partnership with EA Sports and rising operational costs.
- These factors collectively limited growth, resulting in a muted five per cent increase in the segment’s overall revenue.
- Esports is gaining increasing traction in non-metro cities, driven by India’s status as a mobile-first gaming nation.
- JetSynthesys’ Global e-Cricket Premier League launched in late 2023 last year, has the potential to redefine esports in India, merging the country’s love for cricket with the rapidly growing esports ecosystem.
Revenue is expected to reach Rs 316 billion by 2027
- The online gaming segment is projected to grow at a CAGR of 10.8 per cent over the next three years, reaching Rs 316 billion by 2027.
- The esports and casual sub-segment is expected to grow at a 16 per cent CAGR as compared to the transaction-based sub-segment which we expect will grow at nine per cent unless illegal and offshore betting apps are curtailed.
- As a result, the share of esports and casual gaming in total online gaming revenues is expected to rise to 26 per cent by 2027, up from 19 per cent in 2022.
- In-app purchases are expected to grow at 20 per cent CAGR on the back of new titles, increasing interest in immersive gaming experiences, particularly mid-core and hardcore games, the rise of cloud gaming platforms that enhance accessibility and continued growth in per capita income and a rising share of digital payments, including smoother transactions for gaming.
- Esports is projected to grow by 13 per cent on the back of higher prize money (aided by the return of Free Fire tournaments), growth in professional teams, titles like Asphalt and Mobile Legends making their India entry, and rising popularity of Indian titles like Indus Battle Royale, Underworld Gang Wars, Road to Valor and FAU-G.
Online gaming will drive the make-in-India agenda
- Overall, the online gaming segment will remain one of the driving forces behind the growth of the broader AVGC sector, consistently creating employment opportunities across all phases of game development and distribution, including design, game-art, coding, marketing, and user support.
- The current environment is resulting in more Indian game development companies starting to serve international markets from India, where regulations are more favourable, either by setting up operations there or by making targeted acquisitions.
- Their experience in working in these markets is increasing at a time when mobile gaming, AA games and indie gaming are growing in importance globally, with the largest game developers planning strategic investments in the medium. Given India’s mobile-first gaming capabilities, it can become the gaming back-office of the world. At scale in the medium term, this can add US$3.75 billion to India’s exports annually by 2028.
Regulatory certainty will drive investment
- Immediate clarity on retrospective GST taxation is essential to enable RMG companies to:
- Focus on innovation, diversification and other growth-oriented initiatives.
- Boost investor confidence, paving the way for increased funding and FDI.
- Explore opportunities for public listing, enhancing market visibility and access to capital.
- Gaming firms welcomed the Supreme Court’s recent decision to stay the GST show cause notices, with the final hearing scheduled for March 2025, providing temporary relief from potential tax penalties.
- Stringent measures are required to curb illegal and offshore operators offering betting and other banned games, ensuring regulatory compliance and a level playing field for all stakeholders.
- The regulator must clearly define permissible advertising standards and permissions for money games, ensuring that promotional content is not misleading and permitted for legal games only.
Platform and multi-platform strategies
- With GST now being applied to deposits, single-game operators face significant challenges, as frequent withdrawals and deposits amplify the tax burden and erode profitability.
- A platform strategy, which integrates multiple games under a single ecosystem, offers a compelling solution. It drives higher spin rates, mitigating the GST impact by circulating deposits within different games on the platform. Moreover, it ensures sustained player engagement.
- An increasing number of gaming companies are expected to adopt this strategy soon to ensure long-term growth and resilience, as well as increasing game availability to multiple platforms rather than being exclusive.
A robust publishing ecosystem
- India’s gaming segment lacks a strong publishing framework, limiting the growth of local developers and restricting the global reach of Indian-made games. This issue is particularly significant for mid-core and complex game genres, leading local developers to primarily target casual or hyper-casual games markets
- Increasing customer acquisition costs also prohibits adequate investment in game release and distribution.
- Consequently, the development of a structured publishing ecosystem is expected, which will propel the growth of India’s online gaming segment by:
- Attracting increased funding for developers, enabling them to focus on creativity and innovation.
- Enabling access to global markets.
- Facilitating strategic partnerships with global studios to enhance game development quality.
- Build marketing efficiencies using 1P data
Made-for-India games
- Industry discussions indicate that there are over 1,000 game development companies and start-ups in India; and hence the coming years will see a marked shift towards localised game content catering to India’s diverse audience across multiple languages.
- Drawing inspiration from the success of BGMI and Free Fire, we will see a rise in Indian-made games. Some notable examples include:
- MPL backed Mayhem Studios launched a beta version for Underworld Gang Wars achieving over six million pre-registrations.
- SuperGaming launched beta version for Indus with more than five million downloads
- Nazara Publishing announced the beta launch for FAU-G, developed by Mumbai based Dot9 Games.
- These developments will not only foster skill building but also create jobs and drive growth across the gaming value chain.
- Expansion into niche categories such as educational games, region specific skill-based games, mythological games and esports is expected to further enrich the gaming landscape.
Cricket: Converting fans to players
India’s unmatched passion for cricket presents an opportunity for cricket esports to transform the gaming landscape.
- With strategic execution, a robust cricket esports IP could emerge as a contender against global franchises like EA Sports FC or NBA-2K; JetSynthesys has already launched its cricket sports league, and the BCCI has released an RFP for its own esports game.
- We believe that such initiatives could redefine not only gaming and esports in India but also position India as a significant esports player on the global stage.
Free-to-Play (F2P) games will dominate
F2P games remain a cornerstone of the gaming industry:
- Simplicity and accessibility of F2P games will continue to attract a broad player base as players prioritise value-driven experiences.
- We can expect to see innovations around building and maintaining communities to cultivate loyalty, creation of games for older and more affluent audiences, and more women-based games.
To read the EY Ficci 2025 report, click here.
