India records 110 mn daily gamers, growing at 5-6% CAGR: Report

India has been recorded with the highest potential to become one of the most significant gaming markets globally. It was highlighted in a report titled India’s Gaming Inflection: Non-RMG at Scale, released by Mumbai-based consumer-tech venture capital fund Lightbox.

The report comes as the country pivots from real-money gaming (RMG) to non-RMG segments following regulatory changes.

According to the report, India had nearly 420 million players in 2024, making it the second-largest gamer base worldwide after China. About 110 million people play daily, with the base growing at a 5-6% CAGR. Despite high download numbers, monetisation remains low, with India’s average revenue per user (ARPU) at $3.03, compared to China’s $68 and the US’s $215.

The Promotion and Regulation of Online Gaming Act, 2025, banned RMG, including advertising and payment channels, which previously accounted for 83-86% of revenues. The Act has provided a boost to non-RMG segments such as casual games, mid-core titles, esports, and community-driven platforms.

Commenting on the findings, Sandeep Murthy, Managing Partner at Lightbox, said, “Indian Gaming is no longer a question of scale. Multi-faceted value creation is in progress. India can leapfrog from volume volume-driven market to value value-driven gaming giant. With policy clarifications, India's young, mobile-first and multi-lingual gamers, emerging monetisation avenues through in-app purchases, subscriptions and ads, the opportunity is huge. Our poll with Rooter reveals that almost three-quarters of gamers are already spending in non-RMG, both short and long session cohorts, with over 30% spending Rs. 1,000 per month. If provided with the right value, content, and community, Indian gamers will pay. We firmly believe that India can shift from being a volume story to a value story, fuelled by culturally relevant, long-lasting, and monetizable gaming experiences.”

Findings from the Rooter poll, a game streaming and commerce platform, recorded 74.9% of respondents spending on non-RMG in-app purchases. 31.2% spend more than Rs 1,000 per month.

It recorded, spending comes from both heavy (2+ hours daily) and light (under 30 minutes) players.

Popular categories include battle passes and subscriptions (40%), cosmetics (37%), and unlockable content (23%).

Hindi is the dominant language (34%), followed by Tamil and Telugu, with over 45% of gamers preferring regional content.

12% find in-game ads ‘annoying,’ while 38% would stop playing if ad loads were excessive.

52.4% reported increased playtime over the past five years.

The report also identifies future growth drivers for non-RMG:

Hyper-localisation: Nearly 75% of users prefer Hindi or regional languages.

Game-based learning (GBL): Valued at $873.3 million in 2024, projected to reach $5.39 billion by 2033.

Cloud gaming: Estimated at $9.98 million in 2024, projected to grow to $1.3 billion by 2030.

Artificial Intelligence: Used for localised narratives, monetisation optimisation, and personalised gameplay.

Globally, the gaming industry was valued at $177.9 billion in 2024 and is expected to reach $198 billion by 2027, with more than 3.42 billion players worldwide.