India's online gaming battle Rs 11,900 crore revenues from FY23

The rapid growth of digital infrastructure has led to an exponential increase in online gambling in the country, with revenue expected to reach 11,900 crore from FY23, according to a report.

The online gaming industry that was connected to Rs 2,000 crore in FY14 rose 2 times to reach Rs 4,400 crore in FY18. Revenue is expected to climb to 22% CAGR since the 18th FY23 to reach Rs 11,900 crore, according to a KPMG report.

The report noted that the number of players and game developers has increased to 250 million in 2018 from 20 million and 25 million, respectively in 2010.

Mobile phones represent the majority of revenue in the country it scored, as its share was 85% in February 17.

Increasing accessibility and penetration of the smartphone, expanding the Internet user base, reducing data prices have been attributed as the driving levers for mobile gambling.

Puzzle, action and adventure are the top games in the country, he said.

Fantasy sports are also witnessing the growing attractiveness in the country due to the development of digital infrastructure and the emergence of new sports tournaments, he noted.

The number of fantastic sports players in the country has risen 7 times to reach 70 in 2018 from 10 in 2016. However, sports ghost users have risen 25 times, reaching 50 million in February 2019 from 2 million in June 2016.

Among the 336 consumers surveyed, 74 percent of users play sports fantasy 1-3 times a week, with the majority playing once a week.

"About 20% of respondents said they play more than five times a week, which shows the growing attraction of the species in the country," he said.

The report reported that the majority of users from the top 7-8 cities of the country were found to play less often than some of the smaller cities in the country. Almost 85 per cent of respondents from major cities play sports fantasy 1-3 times a week, compared with nearly 70 per cent of respondents from smaller cities playing more than four times a week on such platforms.

About 71 per cent of respondents played fantasy cricket, followed by 54 per cent played football, while non-cricket sports tournaments in the country are also witnessing rising grip, he said.

"Online gaming in India sees increased attractiveness due to the development of digital infrastructure, with fantastic sports appearing as a significant part of this space.

With the number of fantastic sports players growing fast and the number of users on fantasy sports platforms expected to spend 100 million by 2020, this section has the potential to create an entire ecosystem around it and could help deepen the engaging users with their favorite sports, "KPMG partner and chief – Media and Entertainment Girish Menon said.