India is on the cusp of becoming one of the biggest online gaming markets in the world. According to a new report by KPMG, the industry could be worth $1.1 billion by 2021. The study is based on all facets of the gaming industry, from mobile social games to poker, and considers recent growth, current dynamics, and future innovations. As per the report, India had 120 million online gamers in 2016.
That created a market worth $290 million thanks, in large part, to the proliferation of mobile gaming. With low-cost smartphones becoming widely available in 2015, usage has increased and, in turn, so too has internet access. As of 2020, internet penetration in India was 31%. By 2021, KMPG analysts expect it to reach 53%. That would give over 700 million people access to the internet and its wealth of gaming options.
Indian Online Gaming Industry is Surging
The current trends suggest that would lead to a major uptick in the number of people playing online puzzle, action, and adventure games. KPMG’s data shows that over 29% of Indian gamers gravitate to these genres. However, what will be interesting to chart is the impact increased internet penetration has on casino and poker sites. At present, 7% of Indian gamers play “games of chance.” The emergence of online casino and poker sites can be linked to the introduction of a regulatory framework in the state of Nagaland back in 2016.
The system made it possible for casino and poker operators to obtain a license and serve players in India. Today, an online casino in India like Genesis can offer hundreds of real-money games to desktop and mobile users. By using local licensing laws and those mandated in other countries, Genesis et al offer a safe, secure gaming experience on everything from slots like Starburst to live games such as Lightning Roulette.
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Since the emergence of online casino and poker sites, the market has grown at a rapid rate and is now worth more than $500 million. That puts it on par with other types of subsectors of the industry and, in turn, supports the argument that India is fast becoming an online gaming hotspot.
Away from an increase in internet penetration and an evolving set of gaming options, a primary driver of growth is entertainment. 86% of those surveyed by KMPG stated that entertainment was the main reason for playing online games. This links the influence of influencers. According to the report, 64% of gamers were prompted to play online games because of friends, family, or a peer group. In essence, if people are having fun, others want to join in. This is having a snowball effect that should result in continued growth in 2021.
Growth Seems Almost Inevitable
Given that online casino and poker revenue has already surpassed $500 million, the current projections by KPMG may be conservative. Indeed, as more people find their way online, interest in all types of games will increase dramatically. Moreover, if the assumption that disposable income in India is set to increase by 1.6X by 2021, there will be more people willing to spend more. This will not only help casino companies generate more revenue but all gaming companies.
From international players like Microsoft and EA to local heroes such as 2P Interactive and 99Games, everyone will benefit from an increase in downloads and in-game purchases. While India may not be the US, Korea, Japan, or China when it comes to online gaming, it’s certainly a sleeping giant. With a population of 1.3 billion and a rapidly growing economy, the market for digital entertainment is ripe. Thus, KPMG’s $1.1 billion prediction is more than possible, if not a little on the low side.
