India’s 420 million gamers look beyond real-money play as policy shift drives new growth

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India, home to the world’s second-largest gaming base with 420 million players, is entering a new chapter after the government’s 2025 ban on real-money gaming (RMG). A report by venture capital firm Lightbox notes that while scale is massive, monetisation has lagged—average revenue per user stands at just $3, compared with $215 in the U.S. and $68 in China. The shift to non-RMG models could change that equation.

The report argues that India is primed to move from a “volume story” to a “value story.” With policy clarity, a mobile-first culture, and a multilingual audience, the sector could leapfrog into sustainable growth. Non-RMG avenues such as in-app purchases, subscriptions, and advertising are expected to drive revenues.

A survey with Rooter, a streaming and commerce platform, found that nearly three-quarters of Indian gamers already spend on non-RMG purchases, with 31% spending over Rs 1,000 monthly. Spending is spread across battle passes (40%), cosmetics (37%), and unlockable content (23%). Language localisation matters—45% of gamers prefer Hindi or other regional languages. But monetisation strategies will need balance: 38% of respondents said they would quit games if overloaded with ads.

Globally, gaming was valued at $177.9 billion in 2024 and is projected to hit $198 billion by 2027. India, growing 5–6% annually with 110 million daily active players, is poised to become a key driver. Before the ban, RMG made up over 80% of industry revenues. Future growth is expected from hyper-localised titles, game-based learning, AI-driven personalisation, and cloud gaming. Esports, already a $100 million segment in India with 61% revenue from sponsorships, is also set for expansion.

“India can now shift from being a scale-driven market to one built on culturally relevant, monetisable gaming experiences,” said Sandeep Murthy, Managing Partner at Lightbox.