India’s Skill Gaming Economy Could Soon Rival Traditional Sports Markets

India’s sports sector is fast becoming the host to a formidable new player: skill-based gaming.

In 2020, the Indian Premier League, India’s largest sporting spectacle, saw a skill-based sports platform step in as the title sponsor. As it turns out, that was one of the first signs of things to come.

In the years since, real-money skill games (think online rummy games and cricket apps) have exploded from a niche hobby to a multibillion-rupee industry. Gaming enthusiasts now play a quick rummy game or engage in other skill-based play with the same fervour once reserved for traditional sports like cricket and kabaddi.

A Market to Rival Major Sports Leagues

By the sheer scale of money and user engagement, skill-based gaming is rapidly catching up with the legacy sports market. In 2023, this sector generated around ₹182 billion in revenue in comparison to the Indian sports industry, which earned nearly ₹158 billion through sponsorships and media rights.

And with over 450 million online gamers and 100 million daily players, its user base rivals even the IPL’s, which drew around 505 million viewers that year. These numbers reveal the real-money gaming (RMG) economy is keeping pace with major sports in India and standing shoulder-to-shoulder with India’s favourite pastime, cricket.

Explosive Growth and Fan Engagement

This surge in skill-based RMG may not have happened overnight, but it has been astonishingly quick. Online gaming revenues grew by 22% in 2023 alone, with fantasy sports platforms and skill-based apps like rummy games adding users at a breakneck pace. One unicorn platform onboarded 55 million new users that year and rapidly breached the 210 million user mark.

In addition to such explosive growth, engagement in RMG and skill-based games is also off the charts. These platforms have blurred the line between spectators and players and turned casual fans into active participants. While the scope of engagement may have shifted or grown into the digital turf, the passion for sports and gaming remains the same.

A New Era of Sports Culture

Major skill-based gaming tournaments now boast prize pools that compete with the big numbers in traditional sports. For example, a recent online rummy championship offered a staggering prize pool of ₹20 crore. This is on par with the prize money of some major premier sports leagues, and the winner of that rummy game tournament would have walked away a crorepati, just like cricket or kabaddi champions.

These competitions have birthed a new generation of influencers and stars. Much like how sports fans idolise former players and cricket analysts, millions now follow experts who offer tips on skill-based games and rummy strategies. They break down player performances, suggest tips to win rummy games and suggest team lineups.

Skill gaming has created its own celebrities and commentators, too. This is a fine parallel to the star players and TV pundits who have traditional sports fans hooked to the small screen.

The content ecosystem around real-money skill-based gaming is also thriving. Live-streamed matches, tutorials and tournament highlight reels all attract sizable audiences online. This parallel sporting universe is complete with its own tournaments, fan followings and nail-biting matches, all accessible on the internet.

Advertisers and Investors Bet Big on Skill Gaming

Where the fans go, the money follows. This is precisely why India’s booming skill-gaming sector has captured the attention of advertisers, sponsors and investors with deep pockets. The clearest sign of this is the calibre of the brands and celebrities now involved.

Bollywood superstar Shah Rukh Khan is the face of a leading online rummy app and iconic cricketer M.S. Dhoni has been front and centre in ad campaigns for a popular online sports platform. With the biggest names in cinema and cricket involved, this telling crossover effectively establishes the point that games of skill are as legitimate and exciting as any athletic pursuit.

Another strong validation of this sector’s potential is the flood of serious capital backing it. Top-tier investors like Alpha Wave, Tiger Global, DST Global, Matrix Partners, TPG and Steadview all have significant stakes in skill gaming companies.

This level of investor confidence is rooted in hard financial results, strong revenue streams (even after paying out massive prizes) and the promise of further growth. PwC projects that India’s online gaming industry will double to ₹66,000 crore by 2028 and create around 3 lakh new jobs. That explains why big money believes this sector is only getting started.

The Unique Economic Impact of India’s Legacy and Modern Games

The skill gaming sector is emerging as a worthy match for legacy sports. However, this is not an either-or battle between the two. India has enough passionate fans to embrace both variants. Cricket and kabaddi continue to remain national obsessions, while online gaming expands this fervour into new formats.

Economically, legacy and modern games have created a larger sporting entertainment industry than ever before. Traditional sports leagues are continuing their upward trajectory, and the skill gaming sector is adding to that momentum by creating new revenue, tech innovation and jobs.

The result is a diversified sports economy where a Pro Kabaddi League thrives alongside a major rummy app tournament, and where the meteoric rise of skill gaming complements rather than challenges traditional games. Together, they form a powerhouse of sports and gaming that could soon be second to none.

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