The famous Indian epics Mahabharata and Ramayana recount events that took place over three thousand years ago and include tales of gambling as early as 430 BCE. Gambling has been part of Indian culture for centuries and has always been popular, even if it is not widely accepted socially, as gambling was considered as immoral behaviour. Sports betting has always been the most popular form of gaming in India. The practice evolved significantly during the British colonial period, between the 17th 19th centuries, with the introduction of formal betting markets and horse racing.
Over a decade ago, India entered a new tech era. Bettors now make their wagers on online sports betting platforms and cricket bets account for around eighty-five percent of online gaming revenue. Increased internet penetration which is now at seventy percent along with more than one billion smartphone users now means that users even in remote areas of the country can access online platforms which is redefining gaming in India.
The Proliferation of Online Gaming Platforms and The Rise of Live Casino Gaming
The Public Gambling Act of 1867 makes it illegal to establish land based casinos but does not mention online gaming. This creates a grey area and it is not clear whether online casinos are exactly legal. Despite the blurred lines of legality, online casinos have established their place in the online gaming ecosystem. Leading platforms such as Regal Rush Online in India caters to local audiences and are optimised for India’s predominantly mobile first population.
In the past decade, there has been a proliferation of online gaming platforms that has surpassed other emerging digital sectors in the country. With a population of over 1.4 billion citizens there is a very large consumer base that can be exploited. Indians are embracing the new technological revolution with open arms. Gaming was formerly regarded as being a niche hobby but now smartphone penetration has transformed it into a mainstream activity, especially among the younger demographic.
Readily available smartphones along with excellent internet connectivity means that individuals are spending more of their leisure time and disposable income playing online games that range from online casinos to casual games.Online casinos have encountered many regulatory challenges.
Online casinos appeal to gamers because they offer the possibility of winning real money offering a unique form of entertainment that is a combination of chance, strategy, the thrill of competition, and rewards. Many platforms offer generous joining bonuses as well as ongoing promotions for loyal players who visit a platform regularly. Online security features and excellent customer care come as standard and the anonymity of being able to play from the comfort of home or out and about on a mobile device has further raised the popularity of online casinos along with instant access 24/7 to a vast array of games such as virtual slots, live dealer games, traditional table games, and local favourites such as Teen Patti and Andar Bahar.
eSports has established itself as one of the most dynamic digital entertainment sectors in the country. It is particularly popular among the younger tech savvy population that live in tier 2 and tier 3 cities. Casual and social gaming are the main drivers in this area. In the past it was driven by event led formats, however it is now following a more competitive structure with events being held throughout the year and has a larger grassroots following.
There has been a rise in regional leagues that are blending local ecosystems with international circuits. There has been an increase in gaming titles that foster engagement with friends, share progress, and celebrate collective achievements in a community where social standing and community are of utmost importance.
Casual gaming is enjoyed across all age groups and is the most popular method of online gaming. It generates fifty eight percent of all gaming revenue and is enjoyed by eighty percent of the population of which ninety percent are mobile first users. The countrywide roll out of 5G, affordable data plans, and mobile first optimisation means that individuals can instantly access millions of games on their smartphones.
The casual gaming market is exceptionally competitive and game developers are using innovative fresh ideas that are a mix of simple easy to learn game mechanics that are blended with storytelling, puzzles, and augmented reality through a camera phone. Experiences are becoming more personalised and offer quick gaming sessions to relax or just to pass the time.
Rapid Growth Within the Gaming Industry
The increase in smartphone usage during the Covid-19 pandemic has made the country the largest consumer of mobile games and it is projected that the industry will continue to rapidly grow despite the heavy levels of taxation and the blurred lines between what types of online gaming are legal and illegal. Despite increased regulations, the growth for the sector is expected to maintain its ten percent CGR up until 2028 with estimates that annual revenue will reach over $9 billion by 2029.
Many jobs have been created within and around the gaming industry and it is estimated that another 200,000 to 300,000 thousand jobs will be created in IT, development, and customer care. There will be an increase in jobs in eSports where there will be more formal training in order to work in all areas across this sector. There has been a growing demand for analysts, management platforms, and other areas in this rapidly developing sector.
The Tech Evolution
Technology in the gaming sector continues to advance with the integration of AI, AR, and VR which creates gaming experiences that are hyper personalised and very immersive. 5G offers connections with low latency and real time interactions, and cloud gaming gives gamers access to high quality content without investing in expensive hardware which means that even owners of basic smartphones can access them.
A Shock To The India’s Online Gaming System
There was a vote by the Indian parliament in August 2025 that ordered the immediate shutdown of all gaming in the real-money gambling sector. The Promotion and Regulation of Online Gaming Bill 2025 was signed into law on 21st August and does not distinguish between games of chance and games of skill. Oddly enough, it does promote educational, eSports, and social gaming.
The bill has had a significant impact on the gaming market with over 7,000 people losing their jobs, companies writing off millions in loss in revenue, and significant regulatory risks for operators that do not adhere to the new rules. Before the ban, annual gaming revenue in India was around $42 billion annually along with more than twenty thousand jobs both directly and indirectly connected to the gaming industry.
This drastic and shocking move has been met with massive opposition.Online gaming companies are reeling from the shock however they are reinventing themselves as their core business model is now illegal. The law did not ban gaming, it only has tried to separate wagering activities from pure entertainment. Gaming companies have started to create gaming models that prioritise engagement over entry fees, and communities rather than cash pools.
There is much ambiguity around whether platforms can run contests legally and they are treading carefully as they are not sure whether they can collect funds and offer cash prizes. Other companies are looking further abroad in an effort to operate elsewhere where real money gaming is still legal. India has enjoyed several years as one of the world’s fastest growing gaming economies, it will be interesting to see if the government backtracks once they realise that there is much less coin going into their coffers.
In the meantime, the online gaming industry needs to quickly adapt to a future where the gaming industry must be focused around providing games “whose outcome is solely determined by factors such as physical dexterity, strategic thinking, mental agility, or similar skills.”
