The Indian
online real-money gaming sector
has grown significantly from a casual hobby into a global phenomenon for entertainment with professional leagues, a massive user base of players,
online multiplayer games
and a thriving community of content creators and streamers. This meteoric rise has brought both opportunities and challenges to the
gaming industry
. According to a FICCI-EY report, the real money gaming segment constituted 77% of India’s gaming sector revenues in 2022, reaching INR 13,500 Cr. The report also projected that it would increase to INR 16,700 Cr in 2023 and further to INR 23,100 Cr in 2025. This would not have been possible without groundbreaking innovations,
digital transformation
, deep internet penetration, policy revisions, user awareness and so on.
Earlier, online games in India were predominantly identical to their global versions. This warranted a need for games made in India with higher relatability for Indians. Glocalisation of online games led by a close study of Indian user behaviour, spending patterns and market trends for more than a decade, has taken popular Indian games online. One such example is the online version of rummy popular in India - Indian Rummy or Paplu. Tech innovations clubbed with business intelligence have helped create such platforms where users can enjoy their favourite form of entertainment online with crores of other players. Gaming is an engaging means of entertainment. To prevent over-consumption and to put checks and balances, leading
online gaming
platforms have built-in security features to foster responsible gaming habits in their players.
In the past 3 years, India’s digital transformation has witnessed great progress. The Internet has moved from only metros and penetrated into Tier II & III regions with almost 50% of the total population moving online, taking India up on the ladder with regards to online gaming globally Innovation in technology has now enabled it to cater to the new category of users and online gaming platforms are now being built and tested to function smoothly on low internet bandwidth and budget smartphones. The next big rise in gaming is sure to come from these geographies which have also seen an uptick in their income levels over the years. The shift from global to local has also led game developers to read unique user demands in these areas and cater to their specific needs.
Fostering healthy gaming behaviour alongside player security is a critical factor for real money gaming companies in the country today. Using constantly developing AI & ML algorithms, gaming platforms track and observe actionable data-driven insights about specific user behaviour. These insights help assess erratic player behaviour, abnormal spending patterns, excess screen time and much more. Many reports suggest that 1-2 hours daily screen time is a healthy limit for entertainment. However, as per the survey on online gaming by Rakuten Insight, about three percent of respondents between 25 and 44 years old spent over five hours per gaming session. In such cases, platforms can then trigger notifications, preventive actions and anti-fraud measures to specific users after final assessment by humans. This helps speed up the process for countless numbers of online gamers and creates a safe and secure gaming environment.
Due to the rapid advancement in technology and improved internet accessibility in India, the online gaming industry has experienced a significant influx of players. Simultaneously, a concerning trend emerged as various legitimate foreign gaming operators resorted to deceptive tactics to attract users and entice them into gambling for larger sums of money discreetly. This presented a fresh challenge requiring gaming companies to prioritise the safety and security of the players while shielding them from potential cyber fraud. Addressing this challenge meant implementing robust protective measures and encrypting players’ personal and financial information for safeguarding. The sector also had to adapt and evolve its security infrastructure to counteract the activities of these illegitimate players. However, despite these challenges, a need to provide seamless and enjoyable gaming experiences to the users also emerged. It was the tech innovation combined with strong customer centricity which gave rise to this delicate equilibrium of hassle-free safe gaming experience that we enjoy today.
With a good understanding of user behaviour and the online gaming market in India, companies today are taking the right steps to ensure that online games can provide the best means of entertainment harnessing the power of analytics, technological innovations, fair play, security etc. With a significant positive assist and boost from the government in regularising the sector to curb illegitimate operators. This is a sunrise sector in India which can prove to be a great revenue generator for the country in this digital era. The Indian online gaming sector has come a long way led by technological innovation that helped transform the way these games are played and developed. Going ahead with AR, VR, 5G, generative AI, etc. the industry is sure to witness an overhaul in terms of gameplay experience making this industry the one to watch for the next decade.
By: Visvesvarryya Neelakantan, CTO, Head Digital Works
English (US) ·