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In what could be a potential setback for Real Money Gaming (RMG) players, the Tamil Nadu Online Gaming Authority (TNOGA) is preparing to regulate the RMG industry in the state. However, the video gaming industry will remain unregulated in Tamil Nadu. Additionally, TNOGA has decided not to conduct further consultations with stakeholders before implementing the policy.

On July 24, 2024, the first consultative meeting took place between Tamil Nadu officials and representatives from the All India Gaming Federation, the Federation of Indian Fantasy Esports, the E-Gaming Federation, and the Game Developers Association of Tamil Nadu.

Storyboard18 was the first to report that N. Muruganandam, Chief Secretary of the Tamil Nadu government, had hinted at regulating certain games, citing concerns over the growing addiction to online gaming among children and its harmful effects.

Sources close to the matter confirmed this development to Storyboard18, stating, "The Tamil Nadu government clearly has no plans to regulate the video gaming industry, which is still in its early stages. However, the government has observed the adverse effects of RMG in the state, with individuals losing significant amounts of money."

The source added, "Some people have even taken drastic steps after losing money while playing pay-to-play games. Gambling apps, which are already banned in the state, remain another concern. TNOGA will regulate RMG platforms, but video games will stay unregulated."

The Tamil Nadu Online Gaming Authority (TNOGA) has also taken a strong stance against gambling firms, initiating legal action against more than 12 YouTubers, Instagram influencers, and a private firm for promoting online betting and gambling. If convicted under the Tamil Nadu Online Gaming Act, they could face fines ranging from ₹500,000 to ₹1,000,000 and up to three years of imprisonment.

Additionally, Tamil Nadu is set to introduce new regulations for online gaming, which may include daily time and spending limits. The TNOGA, established last year, has recommended that online gaming be prohibited between midnight and 5 a.m., with a daily play limit of four hours and each session restricted to two hours.

Under the proposed rules, players may also face spending caps of ₹5,000 per day and ₹20,000 per month on gaming platforms. Aadhaar verification is expected to be mandatory for all registrations on these platforms.

Another source close to the development stated, "There will be no further consultation on the new policy regulating pay-to-play games in the state. The policy will be more balanced and nuanced, specifically targeting RMG players."

Dr. Palanivel Thiagarajan, IT Minister of Tamil Nadu had told Storyboard18 that TNOGA reports to Home Ministry while industry remains in the IT Sector. Thiagarajan had also highlighted that the state had some meetings and is going to constitute a formal working group.

“We'll clean up the gazette notifications and the interpretations so that it's very clearly focused on real money games and does not affect the rest. But these are the teething pains of being the pioneer. If you are the first one to pass a law and set up an authority, sometimes you have to kind of take a couple of iterations before you get it right,” he concluded.

It’s worth noting that in November 2023, the Madras High Court struck down the law banning online money games such as rummy and poker, declaring the law "unconstitutional." A bench comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu stated that while the state government has the authority to create rules to limit the time spent on online games or to set age restrictions for both games of chance and skill, it can only ban games of chance, not games of skill. The court further clarified that the Act could not be used to ban skill-based games like rummy and poker.

No further consultations: TN online gaming authority set to enforce strict rules for RMG industry

India stands at a pivotal moment in its journey to becoming the “Gaming Nation of the World.” While the domestic gaming industry is still in its nascent stages, it is experiencing rapid growth. However, the real opportunity lies in advancing a “Made in India for the World” approach, positioning India to capture a substantial share of the $180-200 billion global gaming industry, as per a whitepaper authored by Deepak MV, Head- Nazara AI and Analytics and CEO of a Nazara subsidiary and Machaiah Kalengada, Project Head, Game Developer Association of India (GDAI).

The whitepaper is on behalf of GDAI which organizes IGDC and many other gaming initiatives for ecosystem development.

The gaming industry has emerged as the largest entertainment sector globally, outpacing both music and film in revenue generation and growth potential. This trend underscores gaming's increasing dominance and widespread appeal across demographics and regions. In 2023, the global gaming industry generated an estimated $188 billion in revenue.

India: The World’s Next Gaming Powerhouse – The "Made in India for the World" Vision

Prime Minister Narendra Modi has emphasized the potential for "games made in India for the world," spotlighting gaming as a transformative sector with the power to share India’s rich culture, technology, and innovation with a global audience. To achieve this vision, India must move from being a consumer market to becoming a global producer of high-quality, world-class video games. With its vast cultural heritage, highly skilled tech talent, and a rapidly expanding economy, India is well-positioned to become the “Gaming Nation of the World”.

India as a Global Gaming Nation: Four Pillars of Strategic Impact

Business & Economic Growth: "Made in India for the World"

The gaming industry presents a powerful opportunity for economic expansion, transforming India into a global leader in IP-driven content. By creating original IPs, India can build a sustainable revenue stream, high-value jobs, and establish gaming as a key export sector. This shift could make gaming one of India’s biggest contributors to economic growth, with new jobs in game design, AI, animation, and development.

Culture & Soft Power

Gaming provides an unparalleled platform to showcase India’s heritage, mythology, and narratives on a global scale. By incorporating Indian cultural stories into game design, India can enhance its cultural influence, encour age tourism, and bring its values to the forefront. Like Bollywood, gaming can evolve into a powerful medium for storytelling, amplifying India's identity and creating global interest in its ethos and culture.

Education & Social Awareness

The gamification of learning has the potential to revolutionize education and public awareness efforts. Gaming can make education more engaging and 
accessible, improve literacy, and convey important social messages. By integrating gaming into educational and social campaigns, India can promote a more 
informed, engaged, and educated society, turning gaming into a tool for positive social impact.

Why Incubation is Essential for Gaming

Incubators serve as a platform for young game developers and studios, providing critical resources like game development tools, testing environments, and 
infrastructure. Specialized gaming incubators can guide these startups on creating video games for local and global markets, helping them overcome entry 
barriers and thrive.

1. Nurturing Early-Stage Startups

Gaming startups in India often struggle to secure investment, as the industry can be perceived as high-risk. Incubation programs can help by offering/ 
supporting early-stage funding, connecting startups with investors, and reducing financial barriers that prevent innovative projects from reaching the market.

2. Bridging Funding Gaps

Game development requires a blend of technical, creative, and business skills. Incubators can bridge this gap by offering training and mentorship in game 
design, software engineering, art direction, storytelling, marketing, and monetization. This support is crucial in India, where formal education in game development is still limited.

3. Skill Development in a Multi-Disciplinary Field

Game development requires a blend of technical, creative, and business skills. Incubators can bridge this gap by offering training and mentorship in game 
design, software engineering, art direction, storytelling, marketing, and monetization. This support is crucial in India, where formal education in game development is still limited.

4. Building Networks and Market Access

Incubators provide a network of contacts, including publishers, investors, technology providers, and other game developers, which are critical for startups looking to scale. These connections grant access to distribution channels, collaborative opportunities, and mentorship from established players.

5. Support for IP Protection and Monetization

Incubation programs help startups understand the business side of gaming, including intellectual property (IP) protection, monetization strategies, and legal frameworks. This is particularly important for first-time developers who often overlook these areas but are essential for sustainable growth.

India’s thriving incubation ecosystem but gaming needs specialized focus India hosts over 1000 startup incubators, marking it as the third-largest incubator ecosystem globally, following the United States and China. This rapid growth—from just 20 incubators in the early 2000s—is attributed to supportive government policies, the “Startup India” initiative, formalized incubation policies, and the proliferation of academic 
incubators. Nearly half of all incubators are situated in Tier-I cities, while government programs such as the Atal Innovation Mission (AIM) have established 56 Atal Incubation Centres (AIC) and 14 Atal Community Innovation Centres nationwide, further fueling innovation and entrepreneurship.
While India's thriving startup ecosystem and extensive network of incubators, especially within academia, offer strong support for diverse sectors, these general-purpose incubators lack the specialized resources essential for gaming incubation.

To establish a thriving gaming ecosystem in India, specialized incubation programs are crucial. Unlike other industries, gaming combines creativity, technology, and interactive user experience, requiring unique support structures that general-purpose incubators may not provide. 

India’s Current Incubation Landscape for Gaming

India's incubation ecosystem includes a few initiatives aimed at supporting game developers:

Current Landscape of Gaming Incubation in IndiaIMAGE, a Centre of Entrepreneurship (CoE), is a startup accelerator focused on Gaming, Animation, VFX, Computer Vision, and AI. This flagship initiative is a partnership between STPI-Hyderabad (under Government of India) and the Government of Telangana.

Krafton India Gaming Incubator (KIGI):Launched by Krafton, this program provides funding, mentorship, and resources to Indian game developers, 
aiming to nurture the local gaming ecosystem. 

With the gaming industry’s unique needs and India’s limited gaming-specific incubation programs, a more organized approach is necessary. Specialized gaming incubators would address the unique challenges of game development and empower Indian startups to compete globally. By offering target ed support, funding, skill development, and access to a global network, gaming incubators can be the foundation of a thriving ecosystem that positions India as a leading player in the gaming world.

Google's Indie Games Accelerator: This program supports small and mid-sized indie game developers by providing access to Google's resources, mentorship from industry experts, and networking opportunities.

PlayStation India Hero Project: An initiative by Sony to support Indian game developers through mentorship, signif icant funding opportunities, and technical support, tailored to the PlayStation platform.

Limitations of the Current Incubation Ecosystem

For a country of India's scale and potential, there is a clear need for more incubation programs with broader scope to support the gaming industry adequately. Despite the presence of some initiatives, the current incubation ecosystem in India has sever al limitations with reference to gaming.

Limited Coverage and Scale:

Many programs are small-scale and region-specific, lacking the nationwide reach needed to support India's diverse and widespread talent pool.

Resource Constraints: General-purpose incubators often lack the specialized tools, infrastructure, and expertise required to support comprehensive game development.

The Need for Comprehensive Gaming-Focused Incubation Programs

Provide End-to-End Support: Deliver resources spanning the entire game development lifecycle—from concept and design to production, marketing, and distribution—empowering developers with the tools they need to succeed.

Foster Collaboration: Establish strong partnerships among academia, industry, and government to build a robust support network for game developers.

Ensure Accessibility: Design programs that are accessible to developers across all regions, including underserved areas, to tap into India’s vast and diverse talent base

Leveling up: India's ambitious gaming incubator plans

The Game Developers Association of India (GDAI) has signed a Memorandum of Understanding (MoU) with the Federation of Indian Chambers of Commerce & Industry (FICCI) to develop policies aimed at fostering growth in the gaming sector. GDAI has also signed MoUs with the states of Rajasthan and Sikkim to enhance game development, align policy initiatives, and drive innovation.

D. Sridhar Babu, Telangana’s IT Minister, and Dr. Palanivel Thiagarajan, Tamil Nadu’s IT Minister, met with key stakeholders from the gaming industry at the 16th India Game Developer Conference (IGDC), organized by GDAI. The Ministers and stakeholders brainstormed on the initiatives around the video gaming industry.

An industry stakeholder on condition of anonymity said, “We raised concerns about the shortage of skilled game developers and the need for government support to build infrastructure for the ecosystem’s growth. While there is abundant passion, we lack both talent and incubation opportunities.”

The participant added, “The Ministers were receptive and committed to creating a roadmap for the industry’s growth in their respective states.”

Commenting on the MoU with FICCI, Manvendra Shukul, a GDAI board member, said, “FICCI, as a policy and industry body, will collaborate with GDAI to map out the requirements, including policy development, for the growth of gaming sector. GDAI will provide industry insights, while FICCI will help us advocate with the government.”

Shukul continued, “FICCI will act as a bridge between the government and the gaming industry. GDAI will also support FICCI’s initiatives, such as FICCI Frames.”

Regarding the MoUs with Rajasthan and Sikkim, Shukul stated, “GDAI’s goal over the next five years is to establish an ecosystem and maximize India’s video game intellectual properties (IPs). We aim to become the world’s IP capital. These MoUs mark the beginning of that journey.”

He emphasized, “We need to incubate talent and increase the number of game developers, which is the focus of our agreements with these states.”

The MoUs with the states of Rajasthan and Sikkim further stipulate that GDAI will provide expertise in skill development and expanding the video gaming industry.

Additionally, the state governments of Tamil Nadu and Telangana have engaged actively with GDAI and officials from the Ministry of Information and Broadcasting (MIB). They have requested the establishment of regional Centers of Excellence (CoE) in Telangana and Tamil Nadu to support the Animation, Visual Effects, Gaming, and Comics (AVGC) sector. These CoEs would serve as hubs for research, development, and training in game design and interactive media.

Neerja Sekhar, Additional Secretary of MIB, emphasized on the importance of a premier game development school and the inclusion of gaming courses in leading technology, design, and arts institutions. The gaming industry will prepare and submit a detailed project report to the central government for consideration.

GDAI signs MoU with FICCI to streamline gaming policies, sector growth

India's sports ecosystem is on the cusp of a major transformation as it is poised to reach $130 Billion by 2030, according to 'Think Sports: Unlocking India's $130B Sports Potential’ report by Google and Deloitte. As per the report, this growth, a 14% CAGR is nearly double the pace of India's GDP, that signifies a shift in how Indians consume and engage with sports, driven by increasing government investments, a rising trend of multi-sport culture, wide digital adoption, and a range of quality sports content.

The report also projects the creation of up to 10.5 million jobs and $21 billion in indirect tax revenue by 2030. In addition to this, the report highlights that 90% of Indian sports fans now follow multiple sports with Kabaddi and Football gaining traction with 120 million and 85 million fans respectively while cricket remains a national passion. The reason behind this being the popularity of sports leagues in Kho Kho and Hockey. 

Talking about the report, Roma Datta Chobey, Managing Director (Interim Country Lead), Google India, said, “This is a pivotal moment for sports in India and the report outlines a clear path to unlock the value of sports for the nation. We're witnessing a surge in multi-sport fandom, a growing popularity of digital platforms, and
deep engagement from Gen Z, who represent the largest segment of India's sports fanbase. These trends create a fertile ground for innovation and engagement, presenting unique opportunities for organizations and businesses to connect with passionate fans across the nation. We see immense potential in leveraging the digital ecosystem to enhance the fan experience and advance the growth of the sports sector, especially with AI-driven personalization and insights, immersive technologies, and greater digital accessibility.”

Interestingly, the rise of digital platforms has transformed sports consumption in India. According to the Google-Deloitte report, most fans now access sports
content digitally. This trend is even more pronounced among Gen Z, who make up 43% of the fan base, and are driving demand for interactive, personalized experiences. Further to this, 93% of Gen Z fans consume sports content digitally and more than any other generation. Across demographics, fans spend 20% more time on non-live content than on live sports events, highlighting a preference for on-demand viewing and shorter, more personalized content experiences.

Of India’s 655 million sports fan base, women now represent 36% of fans, while 59% reside in rural areas, demonstrating the expanding reach of sports across demographics and geographies. In particular, Kho-kho and badminton are attracting a greater share of women fans.

Furthermore, the sports goods and apparel market is expected to double in value to $58 billion by 2030, driven by a rising fitness culture and increased discretionary spending. Per the report, 73% of consumers are keen on buying merchandise from their favorite teams or players. The sports technology sector is ripe for investment, projected to be a $1 billion market with a projected CAGR of 19%. 

The broadcasting and promotions sector are also experiencing fast growth, with new reach and engagement opportunities catalyzing growth in the sub-sector.

“India’s potential to become a global leader in sports is both a tremendous opportunity and a powerful driver for nation-building. With the advancements in technology from AI to cloud platforms, we have a unique opportunity to nurture talent from the grassroots level, reaching youth in every corner of the country. However, to fully realize this vision, we must tackle the challenges of access, infrastructure, and equitable development. By building strong public-private partnerships, we can drive sustained progress in our sports ecosystem, creating new jobs, promoting health, and enhancing India’s global standing,” Romal Shetty, Chief Executive Officer, Deloitte South Asia, said. 

Moreover, with 1 in 2 individuals starting to follow a sport after encountering it online, technology is crucial for driving deeper engagement and unlocking monetization opportunities through social, gamified, and personalized experiences.

India's sports ecosystem to grow double its GDP at 14% CAGR, reveals Google-Deloitte report

In a significant boost for the video gaming industry, the Indian government has decided to separate Real Money Gaming (RMG) from the video gaming sector. The longstanding demand to differentiate between entertainment-focused gaming and pay-to-play gaming has finally been addressed. This move aims to enable the government to develop more targeted and effective policies for both the RMG and video gaming industries.

Sanjay Jaju, Secretary of the Ministry of Information and Broadcasting (MIB), addressed key concerns of game developers during a closed-door roundtable at the 16th edition of the India Game Developer Conference (IGDC). Speaking to Storyboard18, developers present at the session confirmed, "The government has decided to distinctly separate the RMG industry from the video gaming sector. The Secretary clarified that video games designed for entertainment and content will fall under the jurisdiction of the MIB."

Another developer added, "The RMG industry will be overseen by the Ministry of Electronics and Information Technology (MeitY). The Secretary emphasized that the government understands these are two fundamentally different industries and cannot be regulated in the same manner."

Manish Agarwal, Board Member of the Game Developers Association of India, remarked, "This bifurcation was inevitable. The video gaming and interactive entertainment industry thrives on creative content. As the MIB Secretary pointed out, entertainment is central to this industry. Therefore, it naturally aligns with MIB, which also governs other entertainment sectors like OTT platforms, movies, and radio."

Agarwal continued, "In contrast, the RMG industry operates on a cash-in, cash-out model, which leans more toward technology and app-based transactions rather than deep, narrative-driven content. It's logical for MeitY to oversee this sector, with distinct regulations for each industry."

Developers also urged the government to support education and training initiatives in game development at premier institutions in India.

Sridhar Muppidi, Chairperson of the Game Developers Association of India, stated, "India has only 25,000 game developers compared to 6 million globally. Despite a large number of gamers, we lack the talent pool to capitalize on this opportunity."

Muppidi added, "We’ve requested the government to establish a game development school on par with IITs and to introduce game development courses in colleges. This could address the immediate talent gap by incorporating game development into top-tier educational institutions."

He also cautioned, "The government should avoid imposing restrictive regulations on the nascent gaming industry. Over-regulation at this stage could stifle growth. Once the industry matures, regulatory frameworks can be revisited."

Earlier, on September 6, Storyboard18 reported that the Department for Promotion of Industry and Internal Trade (DPIIT) had sent a letter to MIB, MeitY, and NITI Aayog seeking clarity on distinguishing between games of skill and games of chance. This distinction is crucial for drafting a policy formalizing 100% Foreign Direct Investment (FDI) in online gaming.

The proposed policy would permit full FDI in online real-money gaming, provided the investments exclude betting or gambling activities. NITI Aayog, India's premier policy think tank, is working to establish these definitions to ensure a robust long-term framework for the gaming ecosystem.

Read more: <a href="https://www.storyboard18.com/how-it-works/small-part-of-prasar-bharati-ott-will-be-subscription-based-rest-all-free-mibs-sanjay-jaju-47312.htm">Small part of Prasar Bharati OTT will be subscription-based; rest all free, says MIB's Sanjay Jaju</a>

EXCLUSIVE: India’s gaming industry gets clarity, RMG sector to be regulated by MeitY

Nazara Technologies has teamed up with the Open Network for Digital Commerce (ONDC) to launch "gCommerce," a unique in-game monetization platform, as per a media release on Wednesday.

This new platform is designed to integrate e-commerce within gaming environments, creating fresh revenue streams for developers and enhancing user experience for gamers.

Currently, in a soft-launch phase, gCommerce is set to become widely available to game developers starting Q1 of FY26. It offers developers an affiliate-based revenue-sharing model, allowing them to earn a commission on each successful transaction made by players through the platform.

Leveraging ONDC's open digital commerce network, the gCommerce platform by Nazara will connect to a diverse range of sellers across over ten categories, giving gamers access to a wide variety of products directly within their games. 

This integration aims to improve players' experience by providing informed purchased options that align with their gaming journey, keeping the gameplay immersive yet engaging.

Nitish Mittersain, CEO of Nazara Technologies, highlighted that this collaboration not only opens new revenue avenues for developers but also elevates the overall gaming experience. "We are excited to announce the upcoming launch of gCommerce by Nazara via integration with the ONDC Network, as it represents a significant step forward in our mission to empower game developers with effective and innovative monetization solutions," he said.

T Koshy, CEO of ONDC, shared also his enthusiasm, "Nazara coming on ONDC Network to launch gCommerce is a testament to the versatility of the Network in supporting various industries and use cases. By bringing e-commerce into the gaming ecosystem, we are paving the way for a seamless blend of entertainment and shopping that adds value for players, developers, and the broader digital commerce network."

Nazara and ONDC launch "gCommerce" to revolutionize in-game monetization

India’s new media market touched $12.5 Bn in FY24 growing at a CAGR of 16%. Gaming and Video/OTT are the largest segments, contributing over 60% of the market. India is a key producer of global Animation/VFX services, with the industry valued at $1.6B in FY24, as per Lumikai's report on Levelling up: State of India Interactive Media & Gaming Research FY’24.

The report highlighted that Government amplifies support for gaming and AVGC as key sectors for growth. PM Modi has recognized gaming as a sunrise sector in Independence Day speech, urging more “Made in India” original IP. Moreover, frameworks for distinct legislations and taxations for specific sub-verticals of gaming and interactive media are emerging and gaming is becoming mainstream with acceptance across investors, government, policy makers, academia, and media.

IAP revenue driving monetization growth in India’s gaming market

The annual ARPPU increased to $22 in FY24, a 15% increase from FY23. With 25% of users making in-game payments, the number of paying gamers increased to 148 Mn. Over 60% of RMG paying gamers now also pay for midcore games, suggesting a high degree of overlap in gamer personas and 
growing sophistication of gamers, as per the report.

The Indian gaming market added 23M new gamers to cross 590M gamers in FY24. Currently, India is the world’s second largest market by mobile gaming downloads, 3.5x larger than US and Brazil and the average weekly time spent on games has increased by 30%, from 10 hours to 13 hours.

India’s gaming market exceeded expectations to record $3.8 Bn in FY24 include subscription, IAPs, and ad revenues. India’s gaming market size by revenue in FY24 (in $ Bn). With sustained growth in in-app purchases and ad revenue, the gaming market is expected to cross $9.2 Bn by FY29, growing at a 20% 5-year CAGR. In-app purchase revenue continues to be the fastest growing segment with 41% year-on-year growth. On account of RMG platforms absorbing users’ GST cost and a packed live sports season comprising of two world cups and an IPL, the sector added ~$400M to its topline.

Midcore games propelling IAP revenue growth in India

Revenue from midcore games exceeded expectations clocking 53% year-on-year growth. Casual and hypercasual games saw 10% annual growth in IAP revenue, while ad revenue remained stable despite global pullbacks on ad-spends. Despite growth in topline revenue, taxation challenges in RMG resulted in margin compression and adverse impact on profitability.

IAP revenue driving monetization growth in India’s gaming market

Annual ARPPU increased to $22 in FY24, a 15% increase from FY23. With 25% of users making in-game payments, the number of paying gamers increased to 148 Mn. Over 60% of RMG paying gamers now also pay for midcore games, suggesting a high degree of overlap in gamer personas and 
growing sophistication of gamers.

Insights from Pan India Survey 

44% of gamers are women, up from 41% last year, playing casual mobile games. 66% of gamers come from non-metro cities. 43% of gamers are first-time earners in the age-group of 18-30, exhibiting high propensity to pay for gaming and interactive entertainment

20% increase in time spent on casual games in FY’24. 25% of gamers said they have spent money in games this year, consistent with FY23. 83% of users use UPI or digital wallets to make in-game payments. Top payment motivators of paying gamers include unlocking new content and upgrading in-game items.


20% increase in time spent on casual games in FY’24. 25% of gamers said they have spent money in games this year, consistent with FY23. 83% of users use UPI or digital wallets to make in-game payments. Top payment motivators of paying gamers include unlocking new content and upgrading in-game items.

Users spend 25% more time on interactive social media/streaming platforms compared to passive social platforms. 47% of users are ad-tolerant to avoid paying for subscriptions with preference for micro-transaction based in-app purchases. Time spent on gaming is ~2x compared to time spent on social platforms.

Casual and hypercasual games: IAP up 10%, ads steady

This year, over 18 esports organizations have ceased operations in the country. However, Global Esports (GE) has emerged as the first and only profitable esports organization in India to date. GE’s revenue has grown fourfold, with projections for a threefold increase by 2026.

Recently, Carnival Gaming, an esports organization shut its business within a year. Similarly, many other organizations have not only disbanded their rosters but have also shut down operations. Even Global Esports dismantled its Battlegrounds Mobile India roster due to an unclear roadmap from the game publisher.

Global Esports operates in both India and Korea. Speaking about the company’s recent success, Dr. Rushindra Sinha, Co-founder and CEO of Global Esports, told Storyboard18, “Our profitability is largely due to Riot Games’ VCT Partnership Program. Since joining VCT in 2022, our revenue has increased fourfold. Although our expenses have risen significantly, this has opened up opportunities to monetize and generate revenue on a global scale. We've achieved profitability through various streams, such as digital goods like GE-branded in-game skins and stickers, league stipends, and Riot’s incentive programs.”

Sinha further explained, “Riot works closely with us, assisting at every step to standardize and scale not only our operations but also our ability to generate revenue through multiple avenues.”

Discussing the company’s financial performance despite decline in overall esports industry, Sinha said, “For FY 2024 (April 1, 2023, to March 31, 2024), our cash revenue and account balance stand at around $2 million, with our top-line figures being much higher. We anticipate solid year-over-year growth, particularly with our new VCT roster, which is paving the way for more wins and monetization opportunities.”

He added, “We’ve streamlined our operations and adopted a leaner approach. Our team is now more efficient than ever, and we’re looking forward to a promising FY 2025-26, projecting at least a 2-3x revenue increase by the end of 2026.”

According to a report by AWS and Lumikai, India’s esports sector is expected to grow from $40 million in 2022 to $140 million by 2027, with a Compound Annual Growth Rate (CAGR) of 32%. The report also noted that the number of esports players in India increased from 150,000 in 2021 to 600,000 in 2022 and is projected to reach 1.5 million by 2027.

In India, the esports ecosystem primarily revolves around two major game titles: Krafton’s Battlegrounds Mobile India (BGMI) and Riot Games’ first-person shooter, Valorant. Valve’s Counter-Strike 2 has yet to make a significant impact. Meanwhile, Pokémon Unite recently entered the Indian market with a franchise-based esports model and is still working to establish its presence.

Despite decline in brand sponsorships and game publisher interests, GE's profitability shows green shoots and the revival of esports industry in the country. 

Global Esports defies odds to become India’s first profitable esports organization

Gladiators Esports has officially acquired Bengaluru-based Gods Reign, one of the leading esports team in India. The valuation of Gods Reign and the amount was not disclosed by both the parties. 

As part of this acquisition, Gladiators Esports will integrate the Gods Reign into its operations, with Gods Reign retaining its name for the esports team while all other verticals, including content creation and marketing will be under the banner of Gladiators Esports. This consolidation aims to streamline operations, strengthen brand identity, and leverage the combined resources of both entities.

Speaking on the acquisition, Gladiators Esports stated, “We are thrilled to welcome Gods Reign into the Gladiators Esports family. This acquisition reflects our commitment to elevating Indian esports and driving its growth. By integrating the renowned Gods Reign brand and its talented roster, we are not only broadening our reach and influence but also creating a nurturing space for our players and creators to excel. This marks an exciting new chapter, and we eagerly look forward to shaping a bright future for Indian esports.”

In line with this transition, Gods Reign has onboarded Battlegrounds Mobile India roster. 

“This acquisition by  Gladiators Esports represents a pivotal step for both Gods Reign and the Indian esports ecosystem. By combining our expertise, experience, and shared vision for advancing Indian esports, we are poised to deliver unmatched experiences and achievements. Our new BGMI roster, featuring both seasoned talent and fresh perspectives, embodies the high level of competition we’re committed to bringing. Through this strategic move, we aim to amplify opportunities for our athletes, engage our community in exciting new ways, and elevate Indian esports on the global stage,” said Rohith KR, CEO of Gods Reign.

The newly assembled team, which had a combined prize pool earnings of approximately INR 2.5 crores ($276,703) in FY23.

In addition to its esports rosters in Counter-Strike 2, Pokémon UNITE, and BGMI, Gods Reign is also home to some of India's top gaming creators collectively boasting over 6 million YouTube subscribers and more than 1 million Instagram followers.

Gladiator Esports acquires Bengaluru based Gods Reign

With uncertain regulatory policies surrounding Real Money Gaming (RMG) platforms in India, many operators are extending their operations to the Middle East and Latin America. Experts believe that the new 28% tax structure challenges profitability in India, pushing operators offshore and potentially reducing India’s long-term economic benefits.

Real Money Gaming (RMG) was the largest contributor to the gaming sector in India, comprising 83-84% of overall revenue in FY22, according to a report by Grant Thornton Bharat titled Guardians of Safe Play: Ethical Gaming for Vibrant Bharat. Despite regulatory challenges, the report states that RMG attracts around 100 million daily online gamers in India, with 90 million paying to play and an average user spending 8.5 hours per week.

Krishan Arora and Shalabh Saxena, Partners at Grant Thornton Bharat, commented, “If India’s regulatory landscape remains unpredictable or becomes more stringent, it could pose serious challenges for RMG companies, including higher compliance costs, legal risks, and operational obstacles. These factors may make India a less attractive market for continued operations.”

They further noted, “While some RMG companies are expanding into markets like the Middle East and Latin America, it’s unlikely that most will completely exit India in the immediate future. India’s large and growing user base remains highly lucrative. However, regulatory uncertainties and high GST rates may drive some companies to focus on international markets or limit their exposure in India.”

A leading RMG operator in India, speaking anonymously, shared that “Smaller players struggle to reach profitability and are expanding offshore to support their operations in India. If policy uncertainty persists, RMG operators may shift focus fully to international markets.”

Brazil, the fifth-largest gaming market globally by player numbers, is among the fastest-growing in Latin America, according to NewZoo research. In 2022, Brazil ranked tenth in worldwide gaming revenue, generating $2.7 billion. India remains the largest consumer of mobile games globally, with 15 billion downloads annually, followed by the United States and China. Brazil ranks fourth, with 5 billion downloads.

WinZo, which appointed Mahendra Singh Dhoni as its brand ambassador, has expanded into Brazil and is valued at approximately $336 million, according to Tracxn data.

Roland Landers, CEO of the All India Gaming Federation (AIGF), explained, “The lack of clarity around IT rules, combined with the GST hike, has driven further expansion into other regions, where companies are exploring new growth opportunities. However, India’s market remains strategically important and a top priority for most companies.”

Landers also mentioned, “As the market matures, consolidation is expected, especially with recent GST impacts affecting MSMEs more than larger players. The industry has already seen mergers and acquisitions (M&A), a trend likely to continue as companies adapt. Larger RMG firms may diversify their portfolios or adopt hybrid models—balancing international expansions with a sustained focus on India.”

Recently, the Open Network for Digital Commerce (ONDC) onboarded RMG platforms to its network, creating a mutually beneficial situation. ONDC aims to boost the RMG industry by offering a wide range of products and services listed on its network. This initiative is expected to enhance user confidence and trust in these pay-to-play platforms, as they are affiliated with ONDC, a government-backed entity. Experts believe that this initiative is expected to boost the RMG sector in the country.

GAMING