Categories: News

India’s Gaming Reset: New Law Sparks a Turning Point for the Industry, Says Redseer Strategy Consultants

BENGALURU, India, Sept. 2, 2025 /PRNewswire/ — With over 500 million digital gamers in CY2024, India was on track to become one of the world’s largest gaming hubs. But the recent passing of the ‘Promotion and Regulation of Online Gaming 2025bill on 22 August marks a watershed moment. The law prohibits real money gaming (RMG) while formally recognising eSports as a competitive sport, setting the stage for a massive industry pivot.

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The immediate impact is stark. According to Redseer’s recent report, RMG, which had 80–100 million annual users and was projected to grow at 12–15% CAGR, has come to a halt. Beyond gaming platforms, dependent sectors such as digital advertising, sponsorships, and payments infrastructure have also been hit. Yet, amid this disruption, three new growth engines are emerging.

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Casual gaming and eSports are positioned as the next frontier. Rising paid user bases, higher ARPPU (growing from $2–5 in 2020 to $25–30 in 2024), and government recognition are driving momentum. India’s eSports market, currently ~$40 Mn, is projected to expand at 30–35% CAGR, as brands ramp up engagement with younger demographics and publishers invest in mass-market titles.

Industry adjacencies and global expansion are opening new doors. Former RMG players are exploring adjacent categories such as OTT, merchandise, sports ticketing, analytics, and gamification projects. International expansion also remains attractive, especially by popularising Indian-origin titles and sports.

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“For India’s gaming sector, this is both a challenge and an opportunity. As companies reset their models, while a few operators plan to challenge the bill, the winners will be those who innovate fast, whether in casual formats, eSports ecosystems, or global expansion,” said Mukesh Kumar, Associate Partner at Redseer Strategy Consultants.

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The next few years will test the resilience and agility of India’s gaming ecosystem. But with a massive gamer base, surging demand, and policy support for non-RMG formats, India is poised to script a new growth story in global gaming.

About Redseer

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Redseer Strategy Consultants is a leading strategy consulting firm, solving the strategy behind scale for brands and new-age companies. Headquartered in Bengaluru, Redseer has 200+ consultants across India, ME, and SEA. Learn more: www.redseer.com

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Media Contact

Aanshul A Agarwal
media@redseerconsulting.com 

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