Roland Landers, CEO of the All India Gaming Federation (AIGF), recently issued a strong warning regarding the "Online Gaming Promotion and Regulation Act" recently passed in India. He pointed out that the act's comprehensive ban on real money gaming (RMG) will not only impact the gaming businesses themselves but will also severely affect the entire gaming industry chain, including free game development, esports, small and medium-sized studios, and the broader tech venture ecosystem, potentially leading to massive job losses.
The act was officially enacted in mid-August under the Modi government, aimed at addressing online addiction and consumer protection issues, completely prohibiting any form of paid online gaming. However, Landers emphasized that the RMG industry is not as the outside world simplistically perceives it as "only involving gambling," but is a legitimate and critically contributing industry in the development of India's digital economy, attracting a large number of top talents and driving widespread innovation and investment.
"The growth of this industry has supported the establishment of world-class gaming studios, provided funding for small developers, invested in venture funds, and thus supported many Indian gaming and tech startups," Landers said. "It also sponsors major industry events, supports the sports and esports ecosystems, and directly or indirectly creates tens of thousands of job opportunities."
As an industry organization representing 120 real money gaming companies and over 70 free game developers, AIGF pointed out that the ban has triggered a chain of negative effects. For example, one of India's major gaming platforms, Mobile Premier League (MPL), has announced a reduction of about 60% of its Indian staff—about 300 positions, with the company's CEO stating that revenue from the Indian market will soon "drop to zero." Other well-known operators such as Dream11 and Junglee Games have also suspended some operations and are currently raising objections through legal channels.
Although the government states that the act is intended to regulate rather than kill the industry, Landers still calls on policymakers to quickly issue clear explanations and implementation details, especially clarifying whether free games and esports are affected. He revealed that a recent roundtable meeting with senior government officials was "constructive," with officials promising to develop specific rules together with stakeholders.
Beyond the direct impact on the industry, the analysis firm Redseer pointed out that the RMG ban will also affect multiple related fields such as digital advertising, payment gateways, event sponsorships, and technical services. According to forecasts, India originally had 80 million to 100 million real money gaming users, with the industry's annual compound growth rate once reaching 12%-15%.
Nevertheless, new opportunities are also emerging. Esports has been officially recognized as a sports event, and casual games are welcoming a development window with the increasing willingness of users to pay (ARPPU rising from $2-5 in 2020 to $25-30 by 2024). The size of India's esports market is currently about $40 million, with a compound annual growth rate expected to reach 30-35% in the coming years.
In addition, many companies are actively shifting towards non-real money game modes, exploring new directions such as OTT content, physical peripherals, sports ticketing, gamification tools, and international distribution. Mukesh Kumar, Associate Partner at Redseer, believes: "This current phase is full of challenges as well as opportunities. The ultimate winners will be those who can quickly adjust their strategies, focusing on casual games, esports, or global markets."
With over 500 million digital game players, India still has the potential to become a global gaming hub. However, whether it can achieve a balance between regulation and growth, protection and innovation, will determine whether the entire ecosystem can sustainably move towards the next chapter.
