Online gaming industry to worth Rs 29,000 crore by FY25, says KPMG. The online gaming segment in India is projected to grow at a CAGR of 21 per cent over FY21-FY25 to reach a size of Rs 29,000 crore, according to a study released by KPMG in India. In FY21, it was estimated at Rs 13,600 crore. 1.2 The sports sector contributes to the economy in many ways: by supporting employment and adding to the economic output due to commercial activities, by contributing towards increasing expected life span of the population, by facilitating better lifestyles that can also lead to increased income levels. Many aspects of sport and economics are interconnected. Sports are becoming a more influential in economics, but economic theories have a place in sport as well. Game theory can therefore be used to create strategies in both economics and sports. Economics can also linked with sport when it comes to finding new talent.
The market is projected to increase at a CAGR of 17% between 2020 and 2023. In FY20, digital and online added revenue stood at Rs. 26 billion in the M&E sector and their contribution to the sector increased to 23% in 2020 from 16% in 2019. In terms of commerce, the media and entertainment industry contributes significantly to the U.S. economy. The U.S. film industry contributes more than $43 billion each year to the economy and provides more than 2 million people with employment. India is ranked 5 in the world interms of market size of media and entertainment.
Indian online and mobile space has been witnessing strong growth over the last two years. The number of users that have gone online in the last few quarters has surprised online industry analysts and veterans. Online gaming, sports event live-streaming and entertainment segment has witnessed a strong growth. The main reason for the growth of websites and mobile apps is faster internet access and affordable smartphones. Reliance Jio has proved to be a game changer when the company launched its 4G data and calling services for Indian consumers. Before Jio entered the market, Indian telecom operators were charging massive fee for small amount of data. Now, Indian consumers can get 2GB 4G data per day for an average cost of INR 150 per month and this includes free national calling on all networks.
Online gaming has also witnessed growth during COVID-19 pandemic. As people were forced to stay at home during lockdowns, downloads for online entertainment apps, online gambling and sports betting apps witnessed a strong growth. Indian consumers have strong interest in card games and cricket betting. Indian sports fans have been always interested in cricket and Indian cricket control body (BCCI) is one of the strongest and highest earning cricket association across the world. While cricket is the most popular sport across the country, in the recent years hockey, football, pro-kabbadi have also witnessed stronger fan base. Skill-based games, especially those involved with cricket, have also witnessed a strong growth in India. While majority of bets were placed in the past through illegal betting networks in India, the latest trend of online sports betting has been picking up pace across the country. And, these platforms are operated by companies mainly registered in Europe and audited by European Gaming Authorities. They present strong ethics, fast consumer support and a transparent network.
As Indian bettors and gamers have more choice, it also becomes difficult to choose the best platforms. Consumers should make an informed decision and choose the network that provides the best service, offers free bets and has a strong network. Market experts believe that the sector will witness further growth. It is also possible that the Indian government takes a decision in favor of online sports betting. The government is losing a lot of revenue as currently, the legislation is vague about the sports betting and online gaming. The local governments could also benefit from the revenue collected by these networks. Across North America and Europe, governments have been announcing positive decisions about sports betting and this has helped them improve their tax revenues.
Increased smartphone usage and higher data limits have also led to growth among mobile payment apps, online shopping websites and food delivery across the country. People are more confident about ordering online and this has led to an increase in the revenue for services companies. With higher acceptance of crypto-currencies across the world, the financial world is staring at a major change in near future. The younger generation is buying stocks, crypto-currencies and ETFs using apps like Robinhood, eToro and Interactive Brokers. Many Indian brokerage firms have started offering options for investing in US and European stock markets. The change in investing trends across the world will lead to better government regulation and a stricter supervision of money movement in future.