Online Gaming and the Indian Economy, Growth, Jobs & GDP Impact

Online gaming in India has grown from a pastime activity into a thriving digital economy segment. With nearly 488 million gamers in 2024 and revenues touching US$ 3.8 billion, the industry is reshaping India’s economy. It is creating jobs, contributing to GDP, influencing stock market trends, and positioning India as a future gaming hub.

Growth of the Online Gaming Industry in India

Market Size and Expansion

The online gaming industry in India has seen rapid growth over the last decade. According to the 2024 Lumikai report, the Indian gaming market reached US$ 3.8 billion in FY24, registering a 23% year-on-year growth. Projections suggest the market will expand to US$ 9.2 billion by FY29, making India one of the world’s fastest-growing gaming destinations.

India is home to 488 million gamers, of which 110 million play daily (FICCI-EY 2024). This massive user base gives India an edge in scale, though monetization per user still lags behind global benchmarks.

Key Growth Drivers

Several factors have fueled the expansion of India’s online gaming industry. Affordable internet and smartphones, particularly in Tier-II and Tier-III cities, have made gaming widely accessible. A youthful population with strong digital adoption has further accelerated this trend. The rise of esports tournaments offering million-dollar prize pools has also attracted global attention, while the pandemic acted as a catalyst by pushing more people towards online entertainment, solidifying gaming as a mainstream activity

Contribution to India’s Economy

Impact on Indian GDP

The impact of online gaming on Indian economy is no longer marginal. According to NITI Aayog, the sector could account for 1% of GDP by 2030 if growth continues. Currently, the GDP contribution of the gaming industry in India is estimated at around ₹22,000 crore (FY23), growing at a rate of 22% annually (FICCI-EY 2024).

Revenue Streams

Online gaming revenues come from multiple channels:

• In-app purchases for premium features
• Advertisements embedded within games
• Subscriptions for cloud or premium services

This diversity ensures resilience and sustainable economic impact, demonstrating how online gaming boosts Indian economy beyond just player spending.

Recent News & Regulatory Changes (2025)

India’s online gaming sector is currently facing major disruptions due to regulatory changes. The government’s ban on real-money gaming has triggered large-scale layoffs, such as Games24x7 reducing 70% of its workforce and MPL cutting nearly 60% jobs. Dream11 is in talks to end its ₹3.58 billion BCCI jersey sponsorship, highlighting the financial strain on gaming firms. Meanwhile, UPI transactions in gaming dropped by 26% in August 2025, showing reduced user activity. According to Moneycontrol, the ban could lead to an annual revenue loss of ₹10,000–12,000 crore, while the Supreme Court has now taken up multiple petitions challenging the Online Gaming Act, 2025, to provide clarity on its legality.

Major Online Gaming Companies in India

Dream11

Dream11 is India’s biggest fantasy sports platform with over 150 million users, and was valued at over US$ 8 billion in 2023. It revolutionised fantasy cricket, football, and kabaddi, becoming the first Indian gaming unicorn in 2019.

Ban Impact: After the 2025 real-money gaming ban, Dream11 suspended its cash-based contests, which formed the bulk of its revenue. Reports indicate a 40% drop in user engagement, and its IPO plans may now face delays or lower valuations. Sponsorships, including cricket partnerships, are also under review, signalling major challenges ahead.

Mobile Premier League (MPL)

MPL, launched in 2018, grew into a US$ 2+ billion esports and skill-gaming platform, giving Indian gamers global exposure. It became one of the fastest-scaling startups, attracting millions of users through fantasy contests and mobile gaming.

Ban Impact: MPL was among the hardest hit by the ban. In August 2025, it laid off nearly 60% of its Indian workforce (≈300 employees) and shifted focus to free-to-play and international markets. The company’s India revenues collapsed, raising concerns about its future valuation.

Nazara Technologies

Nazara Technologies made history as the first Indian gaming company to go public on the stock exchange. With revenues of ₹1,138 crore in FY23, it operates across esports (via NODWIN Gaming), gamified learning (Kiddopia), and casual mobile games.

Ban Impact: Although Nazara’s diversified model shields it partially, investor sentiment has weakened due to the uncertainty around real-money gaming. Stock performance has been volatile, and growth forecasts may be trimmed until regulatory clarity returns.

NODWIN Gaming

A subsidiary of Nazara, NODWIN Gaming organizes large esports tournaments such as ESL India and BGMI Masters. It has attracted global sponsors like Intel and Red Bull, positioning India on the global esports map.

Ban Impact: Since NODWIN focuses on esports rather than fantasy sports, the ban’s direct impact is limited. However, reduced sponsorship flows and uncertain investor sentiment in the wider gaming sector could affect its expansion pace.

WinZO and Zupee

WinZO and Zupee emerged as popular real-money casual gaming apps, offering quiz-based contests, card games, and multiplayer titles. They attracted millions of downloads across Tier-II and Tier-III cities.

Ban Impact: Both platforms faced massive setbacks post-ban. Downloads dropped by 60–90%, and several employees were laid off. These companies are now pivoting to free-to-play formats and international markets to survive.

Games24x7

Games24x7, backed by Tiger Global, became a major player in skill-based games like rummy and fantasy sports. It was one of the most valuable gaming startups in India.

Ban Impact: The ban forced Games24x7 to lay off about 70% of its workforce (≈500 employees). Its long-term viability in India remains uncertain unless regulations allow real-money gaming to return under a new framework.

Online Gaming Industry Data (India)

Employment & Job Opportunities in Online Gaming

Indian Jobs Opportunity

The rise of online platforms has created thousands of online gaming jobs in India across development, design, testing, and esports. FICCI-EY (2024) estimates the industry directly employs 100,000 professionals, with projections to reach 250,000 jobs by 2025.

Career Growth Areas

• Direct Careers: Developers, esports professionals, AI specialists, and data analysts
• Indirect Careers: Marketing experts, event organizers, content creators, and legal consultants

This highlights strong gaming career growth India, appealing to both tech professionals and creative talent.

Policy, Regulation & Government Role

Current Legal Framework

Government policies on online gaming in India are evolving. While some states ban real-money games, the central government has tasked MeitY with creating a unified framework. This aims to protect users while promoting innovation.

Taxation & Compliance

The 28% GST on real-money gaming in 2023–24 hit revenues hard, with the segment shrinking from ₹190 billion in 2023 to ₹179 billion in 2024 (FICCI-EY). Industry players argue for lower rates to prevent users from shifting to illegal offshore platforms.

Impact on Stock Market & Investments

Gaming Startups and IPO Potential

Nazara Technologies’ IPO success proved investor appetite. Other unicorns like Dream11 and MPL could go public, offering direct exposure to investors interested in digital-first sectors.

Esports Sponsorships and Market Impact

Esports sponsorships already form 40% of tournament revenues. If esports startups list publicly, they could mirror the valuation success of U.S. and Chinese counterparts.

Click Here To Explore Other: NSE Stock Price Today

Future Trends in Indian Online Gaming

Esports Growth in India

The esports growth in India is phenomenal. In 2024, prize pools for tournaments like BGMI Masters League crossed ₹2 crore, and esports viewership on YouTube rivalled cricket live streams.

AI in Online Gaming Sector

Artificial Intelligence is playing a transformative role in the online gaming sector. It enhances user experience by personalising gameplay through adaptive learning systems that adjust difficulty levels and recommendations based on player behaviour. At the same time, AI is increasingly used to detect fraud and ensure fair play, helping platforms maintain compliance and build trust among gamers.

Role of Online Gaming in India’s Digital Economy

The role of online gaming in India’s digital economy extends to fintech, advertising, and cloud infrastructure. It aligns with the Digital India mission, pushing adoption of UPI, wallets, and secure microtransactions.

Comparative Analysis: India vs Global Gaming Markets

India leads in scale but lags in monetization and infrastructure. Closing this gap requires investment in broadband, game studios, and player training facilities.

Online Gaming Bans and Their Economic Impact

The nationwide ban on real-money gaming platforms in 2025 created ripple effects across India’s economy. Since a large share of revenues came from fantasy sports, skill-based contests, and casual real-money games, the industry faced a sudden contraction.

Impact on Jobs and Employment

Several companies announced large-scale layoffs after the ban. MPL (Mobile Premier League) cut nearly 60% of its Indian workforce (≈300 employees) across marketing, engineering, and operations. Games24x7, another major player, reduced its staff by about 70% (≈500 employees). Smaller platforms like WinZO, Zupee, PokerBaazi, and A23 also downsized as downloads dropped sharply. Industry bodies estimate that over 200,000–400,000 jobs could be at risk if restrictions continue, directly affecting developers, esports professionals, content creators, and indirect gig workers.

Impact on GDP and Economy

The ban has reduced projected revenue growth for the gaming sector. According to industry estimates, the government faces an annual loss of nearly ₹20,000 crore in GST and tax revenues due to the suspension of real-money games. The sector, once projected as a US$ 25 billion opportunity, has seen growth forecasts revised downward. This not only affects GDP contribution but also investor confidence in India’s digital economy.

Impact on Stock Market and Investor Sentiment

Investor sentiment in gaming-related companies turned cautious. Nazara Technologies, the only listed Indian gaming firm, faced pressure as regulatory uncertainty spread. Unicorns like Dream11 and MPL, which were preparing IPOs, may now see lower valuations or delays. Notably, Dream11’s fantasy sports contests were suspended, leading to a 40% decline in user engagement and potential devaluation from its earlier US$ 8 billion+ valuation. Sponsorships, such as Dream11’s cricket partnerships, also came under review.

Impact on Digital Payments and Fintech

The effects extended beyond gaming. Digital payment ecosystems suffered a slowdown because real-money transactions fell drastically. According to data, UPI spends on gaming dropped by 26% in August 2025 following the ban. Payment gateways and regtech firms, which managed KYC and compliance for gaming platforms, reported losses worth thousands of crores in transaction volumes.

Challenges & Risks of the Online Gaming Boom

Addiction and Mental Health

Excessive gaming among teenagers has raised concerns about addiction and its impact on productivity. Counseling, parental controls, and awareness campaigns are needed.

Digital Divide

Urban gamers enjoy fast 5G internet, but rural areas still struggle with connectivity. Without bridging this gap, growth will remain uneven.

Financial & Legal Uncertainty

High taxation, unclear definitions of skill vs chance-based games, and offshore platforms pose risks to sustainable industry growth.

Strategic Recommendations for Sustainable Growth

To ensure stability and long-term growth:

• Establish a uniform national regulatory framework
• Reduce GST rates to attract players to legal platforms
• Promote public-private partnerships in esports training
• Encourage startups to develop original Indian IPs
• Expand rural internet infrastructure

These steps can help balance growth, regulation, and user protection.

Conclusion

Online gaming in India is now a significant force in the economy. With 488 million gamers, revenues projected at US$ 9.2 billion by FY29, and employment for 250,000 people by 2025, its potential is undeniable. Companies like Dream11, MPL, Nazara, and NODWIN illustrate how India can lead globally. With the right regulations, investments, and awareness, online gaming could become for India what IT services were in the 1990s—a global growth story.

Relevant Pages You’d Like to Check:

• Gift Nifty
• NSE Option Chain
• Nifty Option Chain
• LTP Calculator
• India VIX
• Initial Public Offering (IPO’s)
• Upcoming IPO
• SGX Nifty

FAQs

1. How big is the online gaming industry in India?

The online gaming industry in India is valued at about US$ 3.8 billion in FY24 and is projected to reach US$ 9.2 billion by FY29.

2. What is the impact of online gaming on the Indian economy?

Online gaming supports India’s digital economy by generating revenue, creating jobs, encouraging fintech adoption, and contributing nearly ₹22,000 crore to GDP in FY23, according to FICCI-EY.

3. How many people are employed in the Indian gaming industry?

As of 2023, nearly 100,000 professionals were employed in gaming. Projections suggest the industry could provide direct and indirect jobs to around 250,000 people by 2025.

4. What role does esports play in India’s gaming growth?

Esports has become a major growth driver, with tournaments attracting millions of viewers, prize pools in crores, and professional players representing India on global competitive platforms.

5. How does online gaming contribute to India’s GDP?

Though smaller than IT or manufacturing, online gaming adds billions to the economy. It could contribute nearly 1% to India’s GDP by 2030 if supportive policies are implemented.

6. What government policies affect online gaming in India?

The government, through MeitY, is working on a uniform framework to regulate online gaming, focusing on taxation, responsible play, and differentiation between skill-based and chance-based games.

7. What future trends will shape India’s online gaming industry?

Future growth will be driven by AI-based personalization, cloud gaming, esports expansion, and stronger integration with fintech, making online gaming a major pillar of India’s digital economy.

8. What is the impact of online gaming on the Indian stock market?

Online gaming impacts the stock market through listed firms like Nazara Technologies. Future IPOs of startups such as Dream11 and MPL could attract investors and boost digital economy stocks.