With the support of a diverse population, everyone in the online gaming industry is working hard to help young entrepreneurs get started in gaming, helping to create jobs and build a platform. -shape to introduce high-tech solutions in entertainment and games.
Gaming brands hope the government takes note of its potential and creates a regulatory framework that takes into account the concerns of all stakeholders in this growing industry.
Mitesh Gangar, co-founder and director of PlayerzPot, said the suggested tax increase from 18% to 28% as GST could disrupt the industry’s current economics and slow down its growth momentum by tightening cash flow. But the industry will adapt quickly to the new tax regime.
He added that this decision will include online gambling in the legal framework and thus attract investment solely because of its global credibility.
1. Online games have grown tremendously. How do you see this trend in the years to come?
The online gambling industry has shown a global increase in interest during the pandemic. Breaking the stereotypes of gaming as an isolating pastime, there were users over 60, in addition to younger gamers, connecting beyond the comfort of their homes around the world. No wonder the Indian gaming industry is projecting faster growth momentum. According to a report by KPMG, the online gaming industry is expected to reach 510 million by the end of 2022. In terms of revenue, the market is expected to grow at a compound annual growth rate of 21% over the next period. five years, which means it will reach $3.84 billion.
Sustaining such growth is an unprecedented demand in gaming, especially among Gen Z and Millennial gamers. Most of them are also planning their careers as gamers and entrepreneurs in this industry. Taking this development into account, the government is also accelerating efforts to make Indian online gambling a serious revenue and employment generating sector.
I see the online gaming market growing exponentially in the coming times with increasing regional penetration and adoption of advanced technologies such as NFTs, Blockchains and 5G internet.
2. How can brands take advantage of the online gaming industry?
The global online gaming market is expected to surpass $200 billion in revenue by 2023. The pandemic has helped people explore and seize the opportunities of online gaming. Now, this industry attracts advertisements because of its user base, which has target audiences for various clients in other industries.
We see many well-known brands leveraging gaming as an engagement channel, including live streaming, sponsorships, and product placements.
As gaming has provided a solid way to socialize, the industry has become another outlet for influencer marketing. Popular gaming influencers with a huge following on their social media channels are actively sought out by brands for endorsement or sponsored content. Advances in technology have even allowed platforms to check if the player is viewing the full ad.
Similarly, platforms can also replay advertisements that users seem to watch without stopping. Therefore, the audience development mechanism is evolving at a rapid pace in this area.
3. Gaming monetization is a promising area. How do you see advertising creating impact for brands through online gaming in India?
If we compare the current gaming scene with that even a decade ago, we would see that the tables have turned dramatically. Gamers, who struggled to fit in, became influencers. They add value to the next generation of gamers with their content, and brands leverage their huge subscriber base to reach their target audience much more effectively.
Marketing and advertising both play an important role in developing an online gaming customer base. It is very important to communicate the right message to users and to publicize our services, new launches and other relevant information such as offers, prizes, contests, etc., through several marketing channels.
Besides these touchpoints, brands are also using mobile marketing to delight and retain users throughout their engagement funnel. By using promotions to simultaneously advertise fantasy and casual games in their own apps, brands are using mobile marketing to generate revenue and grow the user base.
4. Which industry tends to benefit the most from the rise of online games?
Various industries are exploring investment opportunities with the vast user base of online games. I think telecommunications companies are one of those players who benefit the most. Indeed, telecommunications brands have analyzed the potential of this industry during the shutdowns and have already started to invest on a large scale.
A high quality network with uninterrupted connectivity is important for a satisfying gaming experience. Lucrative areas such as cloud gaming rely on the ability of 5G service providers to deliver low-latency, high-bandwidth connections. As telecom companies usher in the 5G era in India, they will benefit from greater smartphone penetration and hence greater accessibility to high-resolution online gaming on all devices.
5. How is data protection ensured in the gaming industry?
India still lacks comprehensive and adequate regulation of online gambling and fantasy sports. This situation leaves players and their data vulnerable to cyber fraud, theft, and even circumstances where platforms permanently freeze suspicious accounts.
In a regulated environment, all companies must comply with data protection laws, while rigorous audits must be carried out for specific requirements. While brands are already detecting abusive and fraudulent behavior through advanced data analytics, it is also possible to monitor login activities and switch devices.
Therefore, gaming platforms, in conjunction with technology companies and the government, should create a foolproof solution to protect consumer data and thus maintain consumer loyalty.
6. What are the challenges facing the real-time gaming industry?
One of the main challenges faced by real-time gamers is the availability of high-speed internet and bandwidth. Reduced latency and ping are important to provide users with real-time gaming experience. Today, game developers use high-end technology, complex artificial intelligence, and design elements that require high-end hardware, software configurations, and excellent connectivity. We hope 5G connectivity will solve many of these issues to deliver a better, maximized gaming experience with the best internet connectivity today.
7. How do you see the expansion of blockchain gaming in India?
Gamers have shifted from single-player video games to multiplayer online games. The next step in entertainment is blockchain gaming, which allows a player to play in real time and earn money. Blockchain has already proven to be transparent and reliable in other industries, and will be widely used to create a win-win situation for developers and gamers.
A keen sense of innovation, coupled with the application of blockchain technology, will help developers imagine, design and develop dynamic game interfaces based on players’ specific interests and preferences.
8. What are the biggest challenges for the industry?
The gaming industry in India has been in its boom phase since the pandemic. However, fantasy games and mobile games are mistakenly associated with gambling. This is due to the lack of rules and regulations that differentiate gambling from ethical online gambling.
Thus, we have yet to make significant progress with regard to the legalization and government recognition of the online gambling sector. Legalization would eliminate a lot of ambiguity and stigma attached to this industry.
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