India Emerges as the World's Second-Largest Online Gaming Market, Despite High GST: Report

NEW DELHI: India now hosts the world's second-largest online gaming community and has 442 million users. This is according to recent report by Grant Thornton Bharat. The E-Gaming Federation (EGF) also supports this finding. Despite the imposition of 28% goods and services tax (GST) investor sentiment remains strong. The real money gaming (RMG) segment shows ongoing deal activity.

A report projects 20% industry growth by FY25. The industry is anticipated to reach Rs 253 billion. Over the past five years the Indian gaming sector has attracted USD 2.8 billion. This investment comes from domestic and international investors. The RMG segment is emerging as key revenue driver. Users are averaging 8.5 hours per week in FY22.

The RMG sector faced significant challenges in 2023. This was due to 28% GST. As result there were widespread layoffs. Some start-ups closed. Despite these setbacks the sector still accounts for 83-84% of industry's revenue. The report highlights that approximately 100 million online gamers participate daily. Out of these 90 million are willing to pay for play. This robust gamer participation ensures the industry's continued expansion. It mitigates the long-term impact of GST.

Investor confidence in the sector's sustained growth is reflected in notable investments such as the acquisition of Ante Multimedia’s Good Game Exchange by Galactus Funware Technology's Mobile Premier League for $12.75 million in FY23. Amid this growth the report underscores importance of ethical standards. It advocates for a comprehensive Code of Conduct (CoC). Its purpose is to establish clear standards for accountability. Additionally, the report emphasizes the role of third-party certification and helps in fostering self-regulation.

The continued expansion of India's online gaming industry is bolstered by significant investor interest. A growing user base also supports this. This underscores the sector's resilience highlighting its potential. Adherence to ethical practices will be crucial and self-regulation will ensure sustainable growth.

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