The online gaming sector in India has rapidly emerged as one of the country’s most promising industries. As the fastest-growing mobile gaming market globally, India’s gaming industry is projected to nearly double its annual revenue from $3.1 billion in 2023 to $6 billion by 2028.
This growth, highlighted by various market analysts, not only signals a thriving industry but also a growing source of employment. According to a report by the Interactive Entertainment and Innovation Council (IEIC), the sector directly and indirectly employed over 100,000 skilled professionals in 2023, with expectations to create over 250,000 more jobs in the coming years.
However, the sector faces significant challenges, particularly because it operates in the digital space. Two major issues currently affecting the industry are the risk of cyberattacks and the impact of offshore betting and gambling platforms. To address these concerns, the India Future Foundation, a leading think tank in tech policy, organised a consultation that brought together a diverse group of stakeholders, including government officials, industry leaders, academia, and law enforcement agencies, to discuss strategies for strengthening the online gaming sector.
Participants at the consultation agreed that the industry is at a crucial juncture and that overcoming these challenges requires coordinated efforts. Col Sanjeev Relia, Chief Strategy Officer at Athenian Tech, emphasised the need to distinguish clearly between online gaming and online gambling.
“While the sector is poised for further growth, the present-day threats could derail its progress unless corrective action is taken,” noted Kanishk Gaur, Founder of India Future Foundation. Col Relia also highlighted the dual threat of cyberattacks, noting, “Online gaming and gambling platforms themselves become victims of cyberattacks.”
The consensus among stakeholders was that raising awareness and creating a conducive environment for the legal online gaming sector is essential. Rakesh Maheshwari, Former Senior Director and Group Coordinator-Cyber Laws and Data Governance at the Ministry of Electronics and Information Technology (MeitY), pointed to the sector’s growth, especially in real money games, mentioning that “It is estimated that more than eight crore people in India play online real money games.” He further noted that the sector has reached rural areas, driven by affordable internet and smartphones.
A key discussion point was the limitations of current efforts to address the challenges posed by offshore betting and gambling platforms. The government has attempted to mitigate these issues by blacklisting certain applications, but according to Dr. Pavan Duggal, a noted Supreme Court lawyer specialising in cyber laws, “It does not work. The reality is there’s no implementation.” Participants observed that banned websites often reappear under new domain names shortly after being blocked, making these measures less effective.
The threat of cyberattacks was also a major concern, with stakeholders emphasising the need for capacity building across various sectors. Mr. Ashok Kumar, Former DGP of Uttarakhand, stressed the importance of enhancing law enforcement capabilities, stating, “While having cyber police stations is a good step, the need of the hour is to have an individual in every police station who is capable enough to handle cases related to cyber crimes.”
Dr. Muktesh Chander, former Special Commissioner of Delhi Police and Former DGP of Goa, highlighted the complexities involved in investigating online crimes, including those related to online gaming. “The victim is in one state, the SIM card is registered in another state, and the bank account is in another state. Who takes responsibility for filing an FIR? Most importantly, even if an FIR is filed, the cost of investigation is too high,” he explained.
In addition to addressing cyber threats, stakeholders emphasised the need for stringent laws and their proper implementation. Siddharth Sharma, SVP – Business Strategy at Head Digital Works, remarked, “As much as we need laws to ensure a level playing field for the online skill gaming sector, what is equally important is proper implementation of the existing and new laws.”
He also suggested that the industry could benefit from practices similar to those in the financial sector, where companies assess the financial capacity of individuals to prevent them from falling into financial distress due to excessive gaming.
Given the sector’s potential for further growth and its role in handling personal data, the need for robust cybersecurity measures was emphasised. Dr. Duggal cautioned, “You are bound to get all the attention from state and non-state actors from cyber actors who would want to prejudicially impact the security, sovereignty, and integrity of the country.” He called for a broader interpretation of constitutional provisions to incorporate cyber elements, noting, “A lot of work needs to be done.”
