The gaming industry has undergone tremendous changes, evolving from rudimentary arcade games to massively multiplayer online platforms. Over the past few years, changes in economic models, content, and gaming platforms have pushed the industry from arcades to competitive e-sports, pixelated graphics to lifelike animations, and differentiated experiences to global, interconnected communities. Today, gaming offers immersive experiences through technologies like virtual reality (VR), augmented reality (AR), and mixed reality (MR), making it a multidimensional giant with no signs of stagnation. However, this rapid growth has opened up new avenues of vulnerability, particularly for young people aged 16-24, who account for 83% of the digital footprint of online gaming.
India’s gaming sector has seen astonishing growth due to affordable smartphones, low data costs and COVID-19 restrictions, with the number of over 450 million online gamers growing at 38% annually, making India the second largest globally. The market has been formed. In 2023 alone, India recorded 9.5 billion game downloads and employed around 100,000 people, which is projected to grow to 2,50,000 by 2025. As reported by Thorton India and the e-Gaming Federation in “Guardians of Safe Play: Ethical Gaming for Vibrant India”. , India has overtaken China’s user base, consolidating its power in the gaming ecosystem. Mobile gaming downloads in India to grow from 5.2 billion in 2022 to 9.66 billion in 2023. Popular games like Ludo King and Free Fire Max earned millions of downloads, cementing India’s role as one of the largest mobile gaming markets in terms of downloads. However, this increase in usage has exposed a dark side, with approximately 3.5% of Indian teens struggling with Internet Gaming Disorder (IGD).
This article examines the rapid expansion of India’s gaming industry, its social impact and the associated risks – particularly those affecting young gamers. The projection shows that the gaming industry will continue to grow, driven by companies such as Game24X7, Dream11 and Mobile Premier League. DFC Intelligence Report 2023 estimates the market to reach $177.8 billion globally by 2030, with India’s share expected to grow to $8.6 billion by 2026. Understanding the balance between innovation and well-being is vital to shaping a sustainable, ethical gaming ecosystem.
Online gaming presents many security challenges, especially as young players become prime targets of financial fraud due to the increasing trend of in-game purchases. Cybercriminals take advantage of social engineering techniques and technical vulnerabilities to steal personal information, exploit unauthorized transactions, and mislead players into unnecessary spending. Multiplayer games, while increasing user engagement through chat and voice functionalities, create opportunities for cyberstalking and harassment, which is particularly worrisome for young and vulnerable users.
Another important issue is the display of age-inappropriate content. Regardless of age rating, many games provide unrestricted access to violent or explicit content. Limited parental controls leave children and teens exposed to content that can negatively impact their emotional and psychological well-being, often desensitizing them to violence or inappropriate topics. Furthermore, extremist groups have increasingly exploited gaming platforms for covert communications, using these spaces to spread radical ideologies, recruit individuals, and even run training simulations.
Although these risks are well documented, several factors contribute to their uncontrolled nature. Cyber crime laws often fail to keep pace with the rapid technological developments in gaming, leading to ambiguity in enforcement. Crimes such as fraud and harassment in the virtual world often fall into legal gray areas, making it difficult for authorities to effectively prosecute criminals. Additionally, gaming platforms often rely on easily bypassed, self-reported age verification mechanisms. This lack of strong verification allows minors to access mature content, exposing them to exploitation and harmful content.
Minimal regulation of gaming content exacerbates the problem. Violent or explicit themes are often widely accessible, and inconsistent application of content guidelines in different countries enables harmful content to circulate unchecked. The lack of unified global standards to regulate content, age restrictions or data privacy is exacerbating this problem. Online gaming crosses borders, yet a lack of international oversight forces jurisdictions to handle these issues independently, often resulting in fragmented and inadequate responses.
Regulatory ambiguity makes matters more complicated. Uncertainty over whether gaming falls under entertainment, gambling or any specific category creates gaps in regulation and prevents effective cooperation between gaming companies and regulatory bodies. This confusion allows threats to persist without proper oversight. Another overlooked concern is the presence of in-game advertisements. These advertisements often target young users and may be inappropriate or lead to fraudulent websites. Without strict controls, in-game advertising may expose minors to inappropriate content or deceptive schemes, further compromising their safety.
In India, the government has recognized the increasing risks associated with online gaming and has taken several measures to address these challenges. However, continued efforts are needed to mitigate these issues and ensure a safe gaming environment for all users.
India has made significant progress in addressing the risks associated with online gaming by developing a regulatory framework and promoting user safety. The Ministry of Electronics and Information Technology (MeitY) is working on rules under the Information Technology Rules that would classify gaming platforms as intermediaries, subject to content regulation and age restrictions to protect users from addiction, financial fraud and inappropriate content. Is.
To encourage industry self-regulation, India has supported the formation of bodies such as the E-Gaming Federation (EGF) and the All-India Gaming Federation (AIGF). These organizations establish guidelines to promote responsible gaming, protect data, and increase financial transaction transparency, reducing the risks of fraud and data abuse. Additionally, to protect young users, gaming platforms are encouraged to display content ratings and provide parental controls that limit exposure to violent or explicit content.
The government has also launched digital literacy campaigns such as “Stay Safe Online” to inform users and parents about cyber risks and empower them to make informed decisions. Cyber crime reporting has improved, with resources such as a national cyber crime reporting portal and a national helpline, making reporting incidents faster and easier to access support.
Financial transaction security in gaming has been strengthened by Reserve Bank of India (RBI) guidelines mandating two-factor authentication, which enhances security in gaming-related purchases and curbs unauthorized transactions. Legislative efforts to regulate online gaming, such as laws introduced in Tamil Nadu and Karnataka, are aimed at addressing gambling-related risks and managing addiction, particularly among young users. Additionally, India’s upcoming Data Protection Bill will enhance user privacy by enforcing strict data management practices on gaming platforms.
The government collaborates with the gaming industry to create a safe environment incorporating artificial intelligence-based content moderation, cyber security measures and user protection features. While these initiatives are still evolving, India is paving the way for a responsible and safe online gaming landscape by balancing growth with necessary regulations.
A framework that prioritizes user safety and transparency is essential to promote the responsible growth of the online gaming industry. Governments should strengthen regulatory frameworks and update cybercrime laws to tackle risks such as in-game cheating, cyberbullying and harassment. Collaboration between gaming companies, law enforcement, and policy makers can standardize definitions and penalties, ensuring criminals face justice. Also implementing stronger age verification and parental controls on gaming platforms to restrict access to age-inappropriate content and empowering caregivers to monitor young users’ exposure to potentially harmful content Is important.
Given the global nature of online gaming, it is important to establish unified content guidelines, age restrictions, and data privacy protections through a worldwide regulatory body. This alliance, representing major gaming markets, can set the standards for creating safe gaming environments around the world. Additionally, platforms should enhance data security by employing advanced cybersecurity protocols, audits, and encryption to protect users from data breaches and financial exploitation.
Digital literacy initiatives can protect users, especially young players, by educating them on how to recognize digital threats. Schools and community organizations can collaborate to promote safe gaming practices. It is also necessary to regulate in-game advertising to prevent the display of inappropriate or misleading content, ad filters and age verification increase protection for young users.
Promoting responsible gaming practices through tools that help users track playing time, spending, and other in-game activities can support mindful gaming, while reducing the risks of addiction. Finally, partnerships with law enforcement are essential to combat extremism on gaming platforms, where monitoring protocols can identify and report suspicious activity, protecting users from radicalization.
By adopting these measures, the gaming industry can promote a safe, inclusive and sustainable gaming environment, balancing innovation with accountability and protecting the well-being of its global user base.
The achievements of the gaming industry come with the responsibility of protecting users from its inherent risks. The rapid expansion of online gaming, while creating a strong economic and entertainment sector, has also introduced significant security vulnerabilities. Establishing harmonized international standards, robust age verification systems, and clear cybercrime definitions is important to combat these threats. Without such safeguards, the gaming industry’s ability to connect and entertain risks being clouded by security concerns, turning what should be a safe space for enjoyment into a source of potential harm. As the industry continues on its path to growth, proactive measures are necessary to ensure that online gaming remains an enriching experience for all, especially its largest demographic of young users.
This article is written by Soumya Awasthi, Fellow, Observer Research Foundation, New Delhi.
