The Booming Online Gaming Sector in India: Opportunities and Challenges

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 remarkable growth not only signals a thriving industry but also a burgeoning source of employment, with the potential to reshape the digital landscape of the nation.

A Growing Employment Landscape

According to a report by the Interactive Entertainment and Innovation Council (IEIC), the online gaming sector directly and indirectly employed over 100,000 skilled professionals in 2023. This number is expected to surge, with projections indicating the creation of over 250,000 additional jobs in the coming years. The rise in employment opportunities is a testament to the sector’s potential to contribute significantly to the Indian economy, fostering innovation and creativity among the youth.

Challenges in the Digital Space

Despite its promising trajectory, the online gaming industry faces significant challenges, particularly due to its operation 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. These challenges pose a threat not only to the integrity of the gaming platforms but also to the safety of users.

To address these concerns, the India Future Foundation, a leading think tank in tech policy, organized a consultation that brought together a diverse group of stakeholders, including government officials, industry leaders, academia, and law enforcement agencies. The aim was to discuss strategies for strengthening the online gaming sector and ensuring its sustainable growth.

The Need for Clear Distinctions

During the consultation, participants agreed that the industry is at a crucial juncture, and overcoming these challenges requires coordinated efforts. Col Sanjeev Relia, Chief Strategy Officer at Athenian Tech, emphasized the need to distinguish clearly between online gaming and online gambling. This distinction is vital for creating a regulatory framework that supports the growth of legitimate gaming while curbing illegal gambling activities.

Kanishk Gaur, Founder of India Future Foundation, noted, “While the sector is poised for further growth, the present-day threats could derail its progress unless corrective action is taken.” Col Relia also highlighted the dual threat of cyberattacks, stating, “Online gaming and gambling platforms themselves become victims of cyberattacks.”

Raising Awareness and Legal Frameworks

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 out that the sector’s growth, especially in real money games, is significant, with estimates suggesting that more than eight crore people in India engage in online real money games. This growth has also reached rural areas, driven by affordable internet and smartphones.

However, the limitations of current efforts to address the challenges posed by offshore betting and gambling platforms were a key discussion point. The government has attempted to mitigate these issues by blacklisting certain applications, but Dr. Pavan Duggal, a noted Supreme Court lawyer specializing in cyber laws, remarked, “It does not work. The reality is there’s no implementation.” Banned websites often reappear under new domain names shortly after being blocked, rendering these measures ineffective.

Enhancing Cybersecurity Measures

The threat of cyberattacks was a major concern, with stakeholders emphasizing 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. He explained, “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.”

The Call for Stringent Laws and Implementation

In addition to addressing cyber threats, stakeholders emphasized 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.

Conclusion: A Bright Future with Caution

Given the sector’s potential for further growth and its role in handling personal data, the need for robust cybersecurity measures was emphasized. 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.”

As India’s online gaming sector continues to evolve, it stands at a crossroads. With the right strategies, regulations, and collaborative efforts among stakeholders, the industry can not only thrive but also become a model for digital innovation and security in the years to come.