India set to overtake China in gaming but needs regulatory clarity, says Dream11's Harsh Jain

Harsh Jain is the co-founder and CEO of Dream11. He is also the chairman of IAMAI (Image: X/IAMAI)

India is on track to become the world’s largest gaming market by 2028, overtaking China, Harsh Jain, the co-founder of Dream Sports, the parent firm of fantasy sports major Dream11, has said.

However, despite having 500 million gamers, the country contributes less than a percent to global gaming revenue — a disparity Jain said needs immediate action.

“We cannot be the world's largest gaming market in five years with one of the smallest shares in global revenue. Those two things don’t work,” Jain said in the keynote address at the Indian Gaming Convention 2024 in New Delhi on October 14.

A critical part of addressing the gap lies in achieving regulatory clarity, particularly for real-money gaming, which accounts for the bulk of the overall revenue.

Jain urged industry players to work together rather than compete in isolation, highlighting that a unified approach would be essential for driving growth and success in the rapidly evolving market. “We need to build bridges and not barriers to unlock the potential of India's gaming sector,” he said.

India's burgeoning real-money gaming sector, where the transfer of money is involved, stands at a critical juncture. Its future rests on the implementation of a comprehensive regulatory framework, upcoming court rulings on GST notices, the constitutional validity of state-level bans on the gaming formats and the role of these governments in regulating the sector, among others.

In April 2023, the Ministry of Electronics and Information Technology (MeitY) notified gaming-related amendments to the IT Act, 2021, which allowed multiple self-regulatory organisations (SROs) to determine whether a real-money game could be permitted in India or not. But, the ministry later reportedly dropped the SRO plan.

Jain, also the chairman of Internet and Mobile Association of India (IAMAI), a grouping of country’s leading startups and tech firms, said clearer regulations from the government would not only stabilise the sector but also enable it to implement global best practices.

"We’ve been working with the government for years, and we expect that clarity soon. Clear rules will allow us to follow global best practices, building user trust and safety," he said.

India's gaming sector has been a key destination for FDI but has seen a decline due to regulatory uncertainties, he said. Jain expressed optimism for the future, saying, "From 2025 onwards, we’ll see regulatory action that will unite the industry and revive foreign investment."

The gaming boom

Jain credited the rise of India’s gaming industry to improved internet and mobile infrastructure, driven by companies like Jio, Airtel, and Vodafone. "India now has 50 crore gamers — larger than almost every country’s population," he said.

The challenge lies in monetising the massive user base.

"Our developers need to figure out how to monetise and grow the Indian gaming ecosystem," Jain said, referring to the free-to-play segment, which has yet to turn its vast player pool into revenue streams.

He also stressed on the potential of esports, where Indian gamers are starting to compete internationally, including at the Olympics. “We can become one of the top esports nations globally but we need to define what qualifies as eSports and promote it extensively,” he said.

Responsible gaming and user safety

Jain also called for the industry to adopt responsible gaming policies and adhere to high standards in advertising and user engagement.

“With great power comes great responsibility. We must ensure that these 50 crore users can trust us to offer the best global practices in user safety," he said.

The Indian gaming industry clocked $3.1 billion revenue in FY23, registering a 19 percent growth from the previous year. The sector is expected to touch an estimated $7.5 billion by FY28.