India’s advertising industry could be staring at a Rs 4,500 crore setback, with the government’s proposed ban on real money online gaming threatening to pull the plug on one of the fastest-growing categories of ad spenders. From the Indian Premier League (IPL) to regional sports leagues and prime-time television, gaming platforms have become key advertisers—and their absence could leave a gaping hole in media revenues.
Real money gaming companies have been among the fastest-growing ad spenders over the last four years, noted Ambika Sharma, Founder and Chief Strategist of ad agency Pulp Strategy. "Their contribution to India’s adex (advertising expenditure) is estimated at 6 to 7 percent annually, with peak bursts during IPL (Indian Premier League) and other sporting events. If closures happen at scale, that share will disappear almost overnight."
The category contributes around Rs 4,500 crore to overall advertising spends in India in a year.
Though it's still a small pie when compared to the Indian ad industry of about Rs 70,000 crore, the growth of spending on advertisements by gaming platforms is unmatched, said Chandan Sharma, General Manager, Digital Media, Adani Group.
"If gaming platforms are forced to exit, the shockwaves won't stop at the gaming industry," he added.
Esports and niche Leagues depend heavily on gaming ad dollars for survival, Sharma said.
Losing this category would create an adex black hole of nearly Rs 2,000 crore for broadcasters and streaming platforms, he estimates. "The most significant loss will be for sports. For years, fantasy apps and real-money gaming brands have been the fuel behind high-decibel advertising during IPL and major sporting events. Their absence would leave a vacuum that traditional categories alone cannot fill overnight," he added.
While FMCG, auto, and e-commerce will continue to fuel growth, the sudden void from gaming brands will be noticeable in the short term, especially for digital publishers and platforms, said Yasin Hamidani, Director, Media Care Brand Solutions.
He noted that online gaming's aggressive ad spends, particularly on digital and influencer-led campaigns, made them disproportionately visible. "For many OTT (over the top) platforms, YouTube creators, and sports broadcasters, gaming has been among the top advertisers and losing that share will be felt strongly in those ecosystems," he said.
If the gaming bill draft leads to companies closing down, there will be an immediate dip in spending on categories like sports sponsorships, OTT (over the top platforms) partnerships, and digital performance advertising where gaming was a big driver, pointed out Suyash Lahoti, Partner at Wit & Chai Group, creative marketing agency. "Television, especially sports telecasts, could feel the pinch since gaming platforms became prominent advertisers during marquee tournaments."
'Noticeable Vacuum'
While gaming does not yet command a double-digit share of the overall advertising pie, its contribution is material, particularly in digital-first spends.
"Its (online gaming ad spends) absence will not collapse India’s ad expenditure, but it will create a noticeable vacuum that will need to be filled by emerging sectors like fintech, e-commerce and D2C (direct-to-consumer) brands. Over the last 3–4 years, gaming was not only adding revenue but also driving creativity in formats and content," Lahoti added.
Gaming companies offered brands interactive spaces like in-game ads, e-sports sponsorships, and creator collaborations that traditional platforms couldn’t replicate, said Himanshu Singla, CEO & Founder, Idiotic Media, an influencer and meme marketing agency.
"If gaming companies are forced to shut down, advertisers will lose a very engaging, high-attention environment. We will lose a unique community-driven engagement that gaming provided, which was very different from a regular TV or digital ad. The bigger impact is not just on ad spends but on how brands connect with young audiences, because gaming was becoming a cultural touchpoint," he added.
Singla recalled how during Covid, when people were home, gaming saw a huge surge in users, and advertisers followed.
"I noticed a lot of brands experimenting with in-game branding, tournaments, and tie-ups with streamers. Post-Covid, the momentum continued, and gaming was becoming a steady part of media plans. Its share in ad revenues was clearly rising. Even traditional brands that had never looked at gaming before started exploring it as a serious channel. The growth was not just in spend, but also in the creativity of how brands engaged with gaming communities," he said.
Digital advertising, influencer marketing impacted
If gaming companies shut shop, the first hit will be on digital advertising and influencer marketing, Singla added. "A lot of young creators built communities around gaming, and they became strong voices for brands. That entire ecosystem could weaken."
On the other hand, Junaid Shaikh, Managing Director, RoshanSpace Brandcom, an ad agency said that advertisements glorified gaming, impacting users financially and emotionally.
"Advertisers fell short of communicating the pitfalls. Then users who gained financially were glorified along with high volume advertising during IPL and the over-the-top advertising with top notch cricketers and Bollywood stars promoting such apps, pushed the consumer down a blind alley."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
