Mumbai: Lightbox, a Mumbai-based consumer-tech VC fund, has released its latest report, India’s Gaming Inflection: Non-RMG at Scale, which reveals that India is pivoting away from Real Money Gaming (RMG) toward a fast-growing, sustainable Non-RMG ecosystem following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.
With nearly 420 million players, India is the world’s second-largest gamer base after China. However, despite being among the highest in game downloads, India still trails in monetization with an ARPU of just $3.03, compared to $215 in the US and $68 in China. This gap underscores India’s massive growth headroom as gaming becomes increasingly embedded in its youth culture.
Commenting on the report, Sandeep Murthy, Managing Partner, Lightbox, said, “Indian Gaming is no longer a question of scale. Multi-faceted value creation is in progress. India can leap frog from volume driven market to value driven gaming giant. With policy clarifications, India’s young, mobile-first and multi-lingual gamers, emerging monetization 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.”
Globally, the gaming market stood at $177.9 billion in 2024 and is projected to reach $198 billion by 2027. More than 3.42 billion people play games worldwide, led by China (702M), India (420M), and the US (221M).
India’s RMG ban, which previously accounted for 83–86% of gaming revenues, has given clear tailwinds to Non-RMG, including casual, mid-core, esports, and community-driven titles. According to Lightbox, Non-RMG is now the fastest-growing segment, monetizing through in-app purchases, subscriptions, ads, and hybrid models.
Key insights from Lightbox’s survey with Rooter include:
- 74.9% of gamers already spend on non-RMG in-app purchases.
- 31.2% spend ₹1,000+ monthly, across both heavy and casual players.
- Spending categories: battle passes & subscriptions (40%), cosmetics (37%), unlockable content (23%).
- 52.4% report increased playtime over the past five years.
- 45% prefer regional language content (led by Hindi, Tamil, and Telugu).
- Players flagged excessive ads as a deterrent, reinforcing the need for hybrid monetisation models.
The report also highlights growth drivers:
- Hyper-localisation: ~75% of Indian gamers prefer Hindi or other regional languages.
- Game-Based Learning (GBL): Valued at $873.3M in 2024, projected to reach $5.39B by 2033.
- Cloud Gaming: Expected to surge from $9.98M in 2024 to $1.3B by 2030.
- AI Integration: Enhancing hyper-local narratives, personalised gameplay, and monetisation.
Lightbox concludes that India’s gaming industry stands at an inflection point. With RMG’s decline and Non-RMG gaining legitimacy, India is poised to evolve from a volume-driven market to a value-driven global gaming powerhouse.
