With the RMG ban changing revenue models and the DPDP Act imposing stricter data practices, India’s gaming industry saw tremendous changes in 2025. Growth beyond real-money betting was fueled by developers’ shift to casual, hyper-local, and AI-enhanced games. With more than 500 million players, the industry prioritizes long-term revenue over risky wagers. Check out the full information on Year Ender 2025 Gaming below.
India Imposes RMG Ban in Year 2025: The Regulatory Earthquake
Indian government passed Promotion and Regulation of Online Gaming Act (PROGA), on August 22, 2025. This Act banned all online real money games involving stakes, regardless of skill or chance elements. This act banned platforms like fantasy sports apps and card games such as Teen Patti, prohibiting cash-in-cash-out mechanics, advertising, and payment processing for them. Penalties include up to three years in prison and fines up to INR 10 million for violations, with authorities empowered to block non-compliant sites.
Following this ban, UPI gaming transactions dropped 25% in August to INR 7,441 crore, signaling a revenue standstill for RMG-dependent firms. Nearly 2,000 jobs vanished from companies like MPL, Games24x7, and Zupee, with broader estimates warning of 5,000-6,000 losses amid investor pullback. The sector, once projected at $9.2 billion by FY29 with RMG comprising 86% of revenues, recalibrated overnight.
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Post-Ban Results Casual and Social Gaming Surge
Companies swiftly shifted to non-RMG models, filling the 83-86% revenue void with social and casual games. Social gaming hit $4.04 billion in 2025, eyeing $8.36 billion by 2030 at 15.68% CAGR via in-app purchases (IAPs) and ads. Hyper-casual titles like Stack Ball and Ludo King dominated downloads, blending simplicity with cultural resonance – Ludo King alone boasts 1.25 billion installs for its multiplayer, voice-chat features.
Video games revenue reached $1.1 billion in 2025, projected to $1.6 billion by 2029 at 12.3% CAGR, excluding RMG distortions. Casual subgenres – simulation, arcade, puzzle – led downloads, while shooters and strategy drove IAPs among engaged players. Studios like those behind Battlegrounds Mobile India expanded free-to-play ecosystems, capturing ex-RMG users seeking recreation over wagering. This pivot aligned with government pushes for AVGC-XR hubs, boosting trust and incentives for skill-building titles.
DPDP Act: Data Privacy Reshapes Indian Gamers Trust
The Digital Personal Data Protection (DPDP) Act‘s rules, effective November 2025, mandated granular consent, data minimization, and child safeguards for gaming platforms. Companies must disclose data uses, enable opt-outs, and notify breaches to the Data Protection Board, impacting analytics, personalization, and social features.
This raised compliance costs for MSMEs but promised higher-quality data and user trust in a 500-million-gamer market. Ad revenues faced dents from restricted child data processing, prompting hybrid models over aggressive tracking. Leaders view it as a net positive, aligning India with GDPR-like standards for mature growth.
Tech Innovations Fueling Recovery
AI emerged as 2025’s game-changer, enabling dynamic personalization, adaptive difficulty, and faster production. Indian studios used machine learning for behavioral analysis, NPC behaviors, and predictive monetization, cutting testing times. Hyper-casual 2.0 blended simplicity with AI-driven engagement, suiting low-end devices prevalent in Tier-2/3 cities.
India’s gaming sector ends 2025 resilient, with non-RMG models proving antifragile amid regulation. Expect 2026 surges in AI-native titles, ethical design, and exports, turning regulatory shocks into value-driven dominance.
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