India’s Gaming Revolution: The Role of Skill-Based Games in Shaping the Digital Landscape
By Ms. Akanksha Dhamija
The stupendous rise of online gaming over the last decade has made it a key disruptor to the digital economy. While online gaming has been around for over a couple of decades, the recent digital revolution, with affordable and accessible data connectivity and digital devices (mobile phones and tablets), built an ecosystem which helped online gaming to flourish.
A Stupendous Rise amidst Headwinds
Catering to the needs of staying connected and entertainment of the huge educated, tech-savvy young Indian population, online gaming had swelled to an INR 33,000 crore industry in 2023. In the next 5 years, by 2028, the online gaming industry is estimated to grow at 14.5% CAGR, doubling its size to INR 66,000 crore.[1]
It is the rise of skill-based real money gaming which has created the biggest difference. Accounting for INR 16,500 crore in revenue in 2023, real money gaming (RMG) had the largest share of the online gaming market. The Indian gaming industry, and especially the RMG segment, has been a big disruptor to the digital economy. However, in order to be the real disruptor, it must sustain and grow.
Despite the admirable rise, the gaming industry, and especially skill-based real money gaming segment, faces severe perception headwinds with much ambiguity around games of skill. Often skill-based real money games are being unfairly considered as games of chance (also gambling) owing to lack of clarity between what games of skill entail. This lack of clarity and perception challenges have the potential to derail the growth journey of the industry.
The Importance of Understanding ‘Games of Skill’
Understanding skill-based gaming is critical to fairly advance the gaming industry to realize its full potential of being the ultimate disruptor and mega contributor to the digital economy. Skill-based gaming provides a dynamic and enriching experience, setting itself apart from traditional gambling. In these games, success hinges on a player’s abilities—such as knowledge, strategy, and expertise—rather than mere chance. This distinction not only makes the gameplay more engaging but also opens avenues for competitive and casual players to earn rewards while refining their skills. By empowering players with control over outcomes, skill-based gaming redefines how people perceive online entertainment.
A crucial factor distinguishing skill-based games from gambling is their reliance on measurable frameworks that prove skill-orientation. These include evaluating if high-skilled players consistently outperform others, if outcomes are largely driven by player choices, and whether performance improves with practice. These factors also open up space for key innovations in the online gaming space, creating an opportunity to transform chance-based traditional games into skill-dominant games. The idea is to infuse learning and skilling along with joy of playing a game, making entertainment meaningful. A proven case in point is that of Zupee Ludo. It is an outcome of a much loved traditional chance-based Indian game, Ludo, been infused with skill-elements to transform it into skill-dominant game. Pioneering in the space, the organization has been the first in India to introduce and launch objective principles to define games of skill. Its rigorous testing methodologies, based on globally recognized hypotheses, have set a benchmark in the industry. Zupee’s success in implementing these frameworks has not only reinforced player confidence but has also inspired other online gaming companies in India to adopt similar models. This collective alignment within the industry strengthens the credibility of skill-based gaming and ensures a level playing field, promoting sustained growth and innovation.
A Larger Role to Play
There’s more to the online gaming industry than being yet another source of entertainment. Driven by the stupendous growth, the online gaming industry is transforming India’s digital economy. Currently employing over 1 lakh people,[2] the industry is expected to generate 2 to 3 lakh direct and indirect jobs in the next few years. This growth is also creating diverse job opportunities across game development, digital marketing, customer support, and content creation, impacting both metro cities and smaller towns as digital platforms continue to expand.
The sector has a huge role to play in furthering skilling and education, leveraging gamification for the benefit of other sectors (like healthcare), becoming a major export for the Indian market, and becoming a soft power, bringing Indian culture, values, and meaningful entertainment on the global stage. Skill-based real money games like Zupee Ludo are already reviving these aspects in the Indian market, riding high on nostalgia while negating the chance element.
As India positions itself as a serious contender of not only playing but developing skill-based online games and related technologies, it needs the industry to accelerate innovation. This can only happen when a sector grows freely, without the opposition or risks unfair perception. Global gaming companies are already eyeing the Indian market as a major growth opportunity, and with the right perception of skill-based online games, along with conducive policies, India can attract both domestic and international investments. This is a start India should capitalize upon, and understanding of the ‘games of skill’ is critical for the sector to keep contributing to the digital economy and achieving the dream of making India a global hub of gaming innovation and technologies. The next few years will be pivotal in determining whether the country can harness its strengths to take a commanding lead in this rapidly expanding sector.
(The author is Ms. Akanksha Dhamija, Chief Operating Officer (COO), Zupee, and the views expressed in this article are her own)
