Whalesbook
Industry Restructuring Post-RMG Ban
The report by ICICI Securities details a stark contraction in India's gaming industry, slashed by 80% from $6 billion to $1 billion after the August 2025 real-money gaming (RMG) prohibition. Previously fueled by high-growth RMG platforms like fantasy sports, rummy, and poker, the sector has undergone a radical transformation. The market now focuses on eSports, free-to-play games, and alternative revenue streams including in-app purchases (IAP) and advertising.
Market Concentration and Key Players
The regulatory crackdown has led to a highly concentrated market, with just two to three major players now commanding 70-80% of the estimated ₹10,000 crore ($1 billion) sector. Krafton's PUBG/BGMI and Garena's Free Fire are at the forefront. PUBG/BGMI alone reportedly generates ₹2,000-2,500 crore annually, supported by millions of daily and monthly active users, with 80% of its revenue from IAP. Free Fire boasts even larger user engagement but weaker monetization.
eSports and New Monetization Models
eSports has emerged as the fastest-growing compliant segment, growing nearly 20% annually. NODWIN Gaming is a significant beneficiary, earning ₹500-600 crore annually from tournaments and sponsorships tied to popular titles. However, casual games like Ludo King illustrate monetization challenges, generating ₹250 crore annually despite high engagement. The new revenue mix relies heavily on IAP (80%) and advertising (20%), with IAP purchases often tied to competitive advantage or social status.
Regulatory Uncertainty and Future Outlook
A significant, albeit unintended, consequence of the ban is the migration of former RMG demand offshore, reportedly via crypto channels. The government is also estimated to have lost approximately ₹25,000 crore in annual tax revenue. Future growth hinges on regulatory clarity, particularly concerning eSports guidelines covering tournament structures and monetization. The industry continues to advocate for the potential return of skill-based RMG under stricter safeguards, a move that could reshape the sector once more.