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India’s online gaming industry has witnessed a meteoric rise in the last decade. The journey wasn’t easy, but it was stimulated by increasing internet access, affordable smartphones, and a growing young population. These factors have made the Indian gaming industry a billion-dollar business within a few years.
At present, India is one of the largest online gaming markets globally. This sector holds the potential for exponential growth. While the positive sides of this industry are generally what get a glorious highlight, multiple challenges are lying underneath, including regulatory hurdles, ethical concerns, and cybersecurity threats.
India’s online gaming market is growing at a speed of a rocket. With around 568 million online gamers in India, the online gaming market is currently standing at $3.1 billion. Industry experts assume that this market size will surpass $8.6 billion within a few years, as the development of 5G networks, cloud gaming, and augmented reality (AR) is further boosting this sector’s progress. Some of the key factors that have been contributing to this growth include:
Rise of Mobile Gaming: Mobile gaming has emerged as one of the strongest pillars of online gaming. In India, approximately 90% of gamers use mobile devices to access online games, especially free-to-play (F2P) games, supported by in-game purchases.
Esports Boom: Esports, or competitive gaming, was popular in other countries of Asia, but India never used to participate in that. However, in the last few years, the scenario has changed a lot, and esports have attracted massive audiences, paving the way for professional gaming as a thinkable career option.
Investment and Startups: In the last few years, as Indian gamers started participating in competitive gaming, startups, and international firms have invested in India’s gaming industry to boost this growth.
Influence of AI and Blockchain: The rise of AI also impacted gaming experiences, but the blockchain-based play-to-earn model has contributed a lot to this progress by creating a new source of earning for gamers.
The growth is promising, but it’s not smooth. The Indian online gaming sector has a lot of roadblocks that have been consistently blocking its path to progress. Below are the key obstacles:
Regulatory Uncertainty: At this point, India has no rules and regulations to restrict abusers in online gaming or gambling. This absence of a national gaming regulation leads to confusion, and different states impose different regulations. Some states have banned real-money gaming, while others allow it with strict conditions.
Addiction and Mental Health Concerns: This is probably the most troublesome thing to deal with. Playing excessive games often pushes youngsters toward gaming addiction, which eventually affects their mental health and makes them lonely.
Cybersecurity and Fraud: This one goes unsaid when it is online gaming. Cybercriminals or hackers are always ready to attack gamers through online games and cause them financial fraud.
Monetization and Revenue Challenges: It is a problem in almost every country, but in India, this issue is more prominent than others. Gamers love to go for free-to-play games, but they often refuse to purchase the battle passes or premium items, spending money. This makes the monetization process challenging.
India’s online gaming industry is growing for sure, but the concerns are also prevalent. These are alarming, but the most potent reason behind these is the lack of a cohesive regulatory framework. Currently, the country has multiple state-specific laws, where Tamil Nadu and Andhra Pradesh have banned certain online games that they have mentioned leading to addiction and gambling. Additionally, states like Karnataka have strict regulations against real-money gaming.
These work for certain states, but these aren’t enough to stop the troubles completely. Therefore, a national regulatory framework is required to address all the issues and bring uniformity:
Certain Games to be Regulated: It is necessary to differentiate between skill-based games and games of chance. While games based on skill should be allowed to go on freely, games based on chance, which are mostly gambling games, should be regulated under gambling laws.
Consumer Protection: No matter which industry it is, consumer protection is necessary. As the industry is growing at a fast speed, it is essential to ensure the protection of users. In the gaming industry, this is more important because this sector consists of minors. Therefore, age restrictions, parental control options, and responsible gaming practices must be added strictly to reduce the risk of addiction and exploitation.
Data Privacy and Cybersecurity: The next thing that should be kept in mind is data privacy and cybersecurity. Currently, millions of Indian gamers are involved in online gaming, so ensuring that platforms adhere to strict data privacy standards is vital. Aside from that, the government must release suitable laws that protect users' personal information and ensure cybersecurity isn’t in danger.
Taxation: The taxation rules must be clear in gaming, just like other sectors. Currently, the tax structure is ambiguous. So, the government must form a uniform tax policy that will benefit both gaming operators and the government to stop illegal activities.
The future of online gaming in India is promising, but the road is not smooth. At every step, there are some obstacles to overcome. However, challenges will always be there, but with proper rules and policies, it won’t be hard to bridge the gap and make gaming a smoothly operating and revenue-generating sector like others.
