Online gaming has fascinated people across countries for many years, irrespective of age and gender. It has also been instrumental in boosting the economies of many nations in the world. In India, the online gaming sector is a relatively new entrant. But interestingly, it has picked up enormous momentum over the last few years, growing at an exponential rate.
There was a time when gaming was more of a hobby in India. But going by statistical data, it is safe to say that today mobile gaming in India is more than just a hobby.Many video gaming niches are popular in India, including casino games. The growth of online casino gaming in India has happened because there are a variety of casino sites like 888 that provide good options to players for fun and joy.
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25 April 2025
So, let us take a quick look at some interesting statistics below.
Lumikai, the first gaming and interactive media fund in India, shares an interesting estimate – there are more than 50 crore gamers in the country now. One-fourth of them are paid users of smartphone games.
The role of the coronavirus pandemic cannot be ruled out when it comes to the increase in the number of active gamers in the country. Research shows that there were more than 400 million gamers in 2022, increasing by 40 million since 2021. The Indian gaming industry witnessed a CAGR of 40 percent which translates to a market valuation of USD 2.8 billion in 2022.
Studies indicate that in 2023, the country is likely to have almost 450 million active online gamers.
With an estimate showingindividuals spending an average of 9 to 11 hours a week on online gaming, this industry is all set to touch the USD 8.6 billion mark by 2027 in India, according toLumikai’s India Gaming Report FY 2022.
At this rate of expansion, it is no surprise that India’s gaming market is now the second largest in the world.
What led to the boom in India’s online gaming industry?
There are two main reasons behind India’s rapidly flourishing gaming sector.
India’s exuberant digital journey is one of the key drivers of growth in the country’s mobile gamers. Studies show that the growth of the gaming industry in India is in direct correlation with the rapid increase in smartphone users as well as the ready availability of affordable high-speed internet connectivity. This has made it easier for Indians to play games on the internet from the comfort of their homes and that too without having to shell out a fortune.
Also, when the world was being ravaged by the COVID-19 pandemic, forcing people to spend time indoors, mobile gaming became their newfound love. It was a solid source of entertainment and distraction amidst uncertainty and grief all around. Naturally, more and more individuals turned to gaming on their smartphones, leading to a massive increase in the number of mobile gamers in the country. So, the pandemic is thother major driving factor for the boom in India’s gaming market.
Types of online gaming in India
Online games in India can be broadly classified into three segments:
- E-sports or online sports video gaming– The electronic sports, i.e., the e-sports segment consists of popular competition sports video games such as FIFA Online 4, Counterstrike, Dota 2, League of Legends, PUBG Mobile, etc. The popularity of this genre has resulted in the growth of many professional e-sports players in India today.
- Casual mobile gaming – This category consists of highly popular games such as Candy Crush Saga, Coin Master, Asphalt 9, Ludo King, etc. Studies reveal that the average Indian spends at least 40 minutes playing casual mobile games everyday. Market experts believe that this segment in India is likely to experience a huge surge in the coming years with the rise of Metaverse.
- Online fantasy sportsgaming – This segment mainly comprises skill-based gaming where players can build their own virtual teams consisting of actual human players. Fantasy gaming is prevalent across major sporting activities in India such as football, cricket, kabaddi, and basketball. The best example of this genre of online gaming is Dream 11 fantasy sports.
- Real money games – Real-money games or RMG, consist of online casino games where players can bet moneyor any other asset that has monetary value. Further subcategories include poker, blackjack, rummy, roulette, daily fantasy sports, quiz, etc. These games are chance-based and involve real prize money. As such the RMG genre in India is widely considered under online betting or gambling, like casino games.
How does the online gaming industry benefit India?
Indians developed greater awareness about online gaming during the lockdown in 2020. Their growing awareness has ultimately led to the rapid flourishing of a sector that has proved to be substantially economically beneficial for the country. India’s gaming sector is now a lucrative choice for an increasing number of investors, generating almost USD 2.8 billion from both foreign and domestic investments during the past five years.
Contrary to earlier times, now the gaming industry has become highly competitive triggering further innovation and ground-breaking technological developments. This will create more opportunities for increased financial penetration in the country’s economy. And with more streamlined legal policies for governance, India’s online gaming industry is only set to yield greater economic benefits in the coming years.
