Why India’s gaming industry is set to soar after RMG ban

The Lightbox study with leading game and e-sports content platform Rooter reveals that almost three-quarters of gamers are already spending in non-RMG, both short and long session cohorts, with over 30% spending ₹1,000 per month. “If provided with the right value, content, and community, Indian gamers will pay. We firmly believe that India can shift from being a volume story to a value story, fuelled by culturally relevant, long-lasting, and monetisable gaming experiences,” says Murthy.

The global gaming market is estimated at $177.9 billion in 2024, which is projected to reach $198 billion by 2027. Over 3.42 billion people play games worldwide. China, India, and the U.S. are the largest markets; however, in terms of ARPUs, the US leads with $215, China at $68, and India at just $3.03, which underscores the headroom for growth.

India had the largest gamer base after China in 2024, around 110 million daily gamers, growing at a 5-6% CAGR. The Promotion and Regulation of Online Gaming Act, 2025, banned real-money games (RMG), outlawed their advertising and financial rails, and introduced strict penalties. This crystallised the regulatory risk around RMG while giving non-RMG games clear tailwinds and legitimacy. Before the new law, RMG accounted for 83-86% of total revenues in the Indian gaming market. Non-RMG, which includes casual, mid-core, esports, and community-driven titles, now represents the fastest-growing opportunity.

Non-RMG games monetise through in-app purchases, advertising, subscriptions, and hybrid models. The FICCI-EY report projects that in-app purchases in India will grow at a 20% CAGR. Advertising revenue in the Indian gaming sector grew 10% in 2024, with casual and hyper-casual games providing platforms for brands to engage younger audiences across Tier I–III cities. Esports revenue in India stood at US$100 million in 2024, with sponsorships contributing 61%. 

For platforms and investors recalibrating after the RMG ban, the Lightbox report outlines a clear playbook. UPI-friendly off-store payments for ₹10–₹99 top-ups and ₹99–₹129 passes; disciplined live-service cadence (events, drops, progression); hybrid  monetisation that combines small IAP with rewarded ads; and cross-device expansion to capture  higher-value users