India's online gaming is developing rapidly, and at the same time, the iGaming industry is also facing some difficulties. Let's take an in-depth look at the specific characteristics of the Indian market and define games suitable for this market.
Indian Market Situation
A large population is an important factor in market growth. India has about 1.4 billion people, of which 300 million are currently gamers. At the same time, the standard of living is also improving. Over the past 10 years, per capita GDP has doubled (a 42% increase compared to 2011-12 prices). Therefore, people are willing to spend more money on entertainment.
Smartphones and 4G telecommunications services are covering all classes at an unprecedented scale and speed. Over the past five years, the number of internet users has doubled.
Thanks to low tariffs and government support, according to the government's plan, by 2025, the internet will cover every village.
Mobile internet plays a special role. Roland Landers, CEO of the All India Gaming Federation, stated that smartphone gaming contributes the most to the real money gaming industry. Mobile traffic dominates India's online gaming industry. In 2021, phone-based gaming apps accounted for 86% of all gaming apps. According to Deloitte's data, by 2026, smartphone users will reach 1 billion.
It is predicted that the market size will reach 120 billion rupees in 2022. It is expected to reach 153 billion rupees (about 1.92 billion US dollars) by 2024.
According to KPMG research, the revenue of the online gaming industry doubled in 4 years: from 20.3 billion rupees in 2014 to 43.8 billion rupees in 2018.
Although the impact of the pandemic has ended, the Indian online gaming market still grew by 28% in 2021. Real money games account for 70% of the total revenue in this field.
Regulation of Online Gaming in India
The current federal law was established by the Public Gambling Act of 1867. Gambling games are considered gambling, and they are largely illegal, but they are regulated and allowed as a licensed activity in several states of India (such as Arunachal Pradesh, Sikkim, and Meghalaya).
The situation of online gaming is more complicated. Relevant legislation was formulated before the internet era. Gambling is defined as a room or building with game inventory. Therefore, in most cases, online gambling is only prohibited when the website is located within the territory. Thus, Indians can only play games on foreign offshore websites, although transferring money to such gambling sites may be illegal.
However, like the United States, Indian states have the right to formulate their own gambling and gaming laws. In most cases, real money skill games are not considered gambling and gaming, so they are allowed.
However, each state defines for itself whether a game is a skill game or a game of chance. In some states such as Andhra Pradesh, Assam, Odisha, Arunachal Pradesh, and Telangana, real money skill games are prohibited.
The prohibition of real money skill games is often challenged in court, considered arbitrary and unconstitutional, while in some states such as Tamil Nadu and Karnataka, it has been completely legalized,
Several courts in India have recognized the distinction between skill games and games of chance, considering that skill-based games such as Rummy, Poker, and Daily Fantasy Sports are protected by the constitution and cannot be banned. In recent years, the online skill game market has developed rapidly and is expected to continue to grow exponentially in the coming years. — Jay Sayta, Legal Advisor at EvenBet Gaming
However, since skill games are not considered gambling and gaming, foreign direct investment is allowed in businesses involving skill-based games.
New Gambling Law Coming Soon?
The current Public Gambling Act is outdated, and its online gaming regulation has many complexities. For example, it is sometimes difficult to distinguish between skill-based real money games (such as poker) and skill-based paid games (such as PUBG).
But this situation is about to change. In April 2022, a private member's bill, the Online Gaming Regulation Bill, was submitted to Parliament. The bill relaxes the rules for players and unifies national legislation. However, experts doubt whether it can pass.
Meanwhile, the Ministry of Electronics and Information Technology (Meity) has also begun discussions with stakeholders to formulate detailed legislation or guidelines to regulate the online gaming industry, including skill games. Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, met with stakeholders from major online gaming companies, who requested clear regulations for online skill games and recognized the self-regulatory organizations managing the industry.
Best Games for the Indian Market
But for India, you should definitely add a variety of games to your iGaming project
Poker
Poker is one of the most popular online games globally, especially in India. The most popular types of poker are the same as in other parts of the world: Texas Hold'em and Omaha. You can integrate them relatively easily into your iGaming project.
However, you should use features like jackpots cautiously. They can only be won by luck and are considered gambling. Therefore, in those states that only allow skill games, you cannot use this feature.
Rummy
Rummy card games have a long tradition and are very popular in India. Usually, it is considered a pure skill game. Statista predicts that by 2024, the market size of online Rummy card games in India will reach 1.4 billion US dollars. This scale is four times that of 2019.
This game is very popular and important for Indians, so a specific organization has been established. It is called the Online Rummy Federation (TORF). It is responsible for certifying India's online Rummy platforms.
Call Break
This game is very popular in Asia, especially in India and Nepal. In India, it is also known as Lakdi or Lakadi. This is a strategic game using 52 cards.
Call Break is usually considered a skill game. Therefore, playing real money games online is legal, and the game is available on popular platforms.
Big Two
This is a classic Asian game, also very popular in India. It is also known as big deuce, capsa, pusoy dos, and top dog.
Fantasy Sports
In India, fantasy sports are also considered a skill game and are very popular. About two out of every three people in India know about fantasy sports. Additionally, the retention rate for fantasy sports is high. According to research by the Indian Fantasy Sports Federation, 89% of people who have played fantasy sports continue to play.
The pandemic in 2020 brought significant challenges to this field, as most sports events were canceled. But now, India's fantasy sports are recovering.
