As per the latest FICCI-EY Report, India’s online and video gaming segment recorded a 17% decline in 2025 following the ban on money gaming implemented at the end of August. The restriction had a direct impact on revenues from money gaming, which fell by 26% compared to 2024, significantly affecting the overall segment performance.
At the same time, the shift in industry focus led to growth in other formats. In-app purchases in video games rose by 15%, with the broader video gaming segment growing around 14% year-on-year. However, esports revenues declined by about 7–8%, impacted by global sponsorship challenges and the sector’s dependence on money gaming brands for funding.
India’s gaming user base expanded in 2025, reaching an estimated 515–525 million players, according to industry reports, with mobile and hyper-casual games continuing to dominate engagement. Battle royale and shooter titles remained central to the in-app purchase (IAP) ecosystem, contributing over 40% of total IAP revenues, while locally developed shooting games gained traction in both competitive formats and community participation.
Following the money gaming ban, companies in the segment diversified into areas such as video gaming, exports, finance and content. Platforms also recalibrated their monetisation strategies, with advertising emerging as a key revenue driver, growing 12% during the year. However, esports revenues declined by 7.5%, impacted by reduced global sponsorship spending and lower participation from domestic money gaming brands.
India’s video gaming industry is projected to reach INR 92 billion by 2028, growing at a CAGR of 13%, driven by shifts in game genres, improving infrastructure, rising per capita income and evolving player preferences. The market is also expected to see diversification in platforms and formats, with connected TVs emerging as new gaming screens and console and premium gaming gaining traction as an aspirational segment supported by higher disposable incomes and wider access to global titles.
The sector is likely to undergo structural changes, with India positioned as a gaming export hub amid global market adjustments. Esports is expected to recover with clearer regulatory frameworks and integration into government initiatives, while creator-led and user-generated content ecosystems will drive a shift toward participation-led models.
Companies are anticipated to explore alternative monetisation strategies, expand brand collaborations targeting younger audiences, and increase focus on localised content, including regional languages, culturally relevant themes and partnerships with celebrities and sports personalities.
