The rise of the internet and advanced technology has given birth to a new industry that is thriving today, the online gaming industry. Online gaming has been gaining immense popularity in recent years. In fact, the global online gaming industry is expected to reach a value of $200 billion by 2023. However, in this industry there isn’t just online gaming. There’s also online real money gaming, which allows players to wager real money and potentially win big.
Online Gaming
Online gaming refers to any game that can be played on the internet. It includes games such as Fortnite, Call of Duty, Minecraft, and World of Warcraft. These games can be played on a variety of platforms, including consoles, computers, and mobile devices. Online gaming has become increasingly popular due to its accessibility and the ability to connect with other players from all over the world. There are a wide variety of games, from first-person shooters to role-playing games, and players are able to explore different worlds and interact with other players.
Online gaming has a relatively short history in India, with the industry only gaining significant traction in the last decade or so. Here’s a brief overview of the history of online gaming in India:
2000s:
In the early 2000s, online gaming in India was limited to PC games like Counter-Strike, FIFA, and Age of Empires, and that too to only few players of these. This was mainly due to the lack of affordable internet connectivity and gaming consoles.
2010s:
The 2010s saw a significant shift in the online gaming industry in India. The widespread adoption of smartphones, affordable data plans, and the availability of low-cost mobile devices paved the way for mobile gaming to become the dominant force in the Indian gaming industry. Games like Candy Crush, Subway Surfers, and Temple Run became popular among Indian gamers.
The rise of mobile gaming also led to the growth of the esports industry in India. By 2017, India’s first-ever esports league, the Indian Gaming League (IGL), had been launched.
2020s:
The online gaming industry in India continued to grow in the 2020s, with the COVID-19 pandemic acting as a catalyst for the industry’s growth. With people forced to stay indoors due to lockdowns, online gaming became a popular pastime, and the industry saw a significant surge in users and revenue.
And just recently, as of December 2022, the Indian government has also started to officially recognize esports as a legitimate sport, which will certainly help bring more attention to the industry.
Pros of Online Gaming
Accessibility: Online gaming is easily accessible to anyone with an internet connection. It can be played on a variety of devices, making it easy for players to connect and play with others from all over the world.
Variety: There are thousands of online games available, ranging from simple puzzle games to complex multiplayer games. This allows players to find games that suit their interests and play styles.
Social Interaction: Online gaming allows players to connect with other players from all over the world. Players can form teams, join guilds, and participate in online communities. This social aspect of online gaming can be especially beneficial for those who may have difficulty making friends in real life.
Cons of Online Gaming
Addiction: Online gaming can be addictive, and some players may struggle with moderation. This can lead to negative consequences such as neglecting other responsibilities or developing mental health issues.
Cyberbullying: Online gaming can also lead to cyberbullying, as players may use the anonymity of the internet to harass and bully others.
Exposure to Inappropriate Content: Some online games may include violent or sexual content that is not appropriate for all ages.
Online Real Money Gaming
Online real money gaming refers to games that allow players to wager real money and potentially win big. It includes games such as online poker, blackjack, and slot machines. Online real money gaming is generally regulated by government agencies around the world, and as of today several countries have banned or otherwise put restrictions on real money online games that require explicitly gambling or wagering with real money. This type of gaming can indeed be very exciting, as players have the potential to win large sums of money.
Online real money gaming in India has a relatively short history, but it has seen rapid growth in the last decade, and especially in more recent times. Here’s a brief overview of the history of online real money gaming in India:
2010s:
The 2010s saw a significant shift in the online real money gaming industry in India. With the rise of mobile gaming and increased internet connectivity, the industry started to gain traction. Online real money gaming startups began to emerge, offering games like poker, rummy, and fantasy sports.
By 2017, the Indian government had recognized fantasy sports as a game of skill, which helped bring more legitimacy to the industry. And around April 2019, Dream11 became the first Indian real money gaming startup to enter the unicorn club, with a valuation of over $1 billion.
2020s:
Along with the online gaming industry, the online real money gaming industry also continued to grow in India in the 2020s, due to the COVID-19 pandemic fueling the industry’s growth. Even real money gaming became quite the popular pastime, as people had to stay indoors due to lockdowns, perhaps with not that much to occupy them. And there was indeed a significant increase in users and revenue in the real money gaming industry, as a result.
As of today, several Indian startups have entered the online real money gaming space, including Mobile Premier League, Dream 11, RummyCircle, and Adda52. These startups offer a range of games, including poker, rummy, fantasy sports, and other skill-based games.
However, the industry has faced some regulatory challenges, with several states in India imposing restrictions on online real money gaming in some form or the other, including the state of Tamil Nadu, where online real money gaming has apparently been banned altogether, citing concerns over addiction and gambling.
Pros of Online Real Money Gaming
Excitement: Online real money gaming can be very exciting, as players have the potential to win large sums of money.
Skill-Based: Some online real money games, such as poker, require skill and strategy. This can make the games more engaging and rewarding for skilled players.
Convenience: Online real money gaming can be played with others (including friends) from the comfort of your own home, making it very convenient. And furthermore, this can be done with a certain degree of anonymity as well, which increases the comfort-levels of many.
Cons of Online Real Money Gaming
Risk of Losing Money: Online real money gaming carries a risk of losing money, and players should only wager what they can afford to lose.
Addiction: Online real money gaming can be addictive, and some players may struggle with moderation. This can lead to negative consequences such as neglecting other responsibilities or developing mental health issues.
Lack of Social Interaction: Online real money gaming can be a solitary activity, and there may not be as much opportunity for social interaction as there is in online gaming.
How are Governments around the world regulating the gaming industry?
Governments around the world are generally taking a closer look at the online gaming and online real money gaming industries and implementing new regulations to protect consumers and promote responsible gaming. These regulations are aimed at ensuring fairness, transparency, and accountability in the industry, as well as the protection / safeguarding of consumers, among other things.
Some of the new regulations that have been implemented or are being considered include:
Age Restrictions: Many countries have introduced or are considering the introduction of age restrictions to prevent underage players from accessing online gaming or online real money gaming sites. These restrictions can vary from country to country, but are typically set at 18 years or older.
Responsible Gaming Programs: Many online gaming and online real money gaming operators are implementing / being required to implement responsible gaming programs to help players manage their gaming habits and prevent problem gambling. These programs can include self-exclusion tools, deposit limits, and educational resources.
Advertising Restrictions: Some countries have introduced or are considering the introduction of restrictions on the advertising of online gaming and online real money gaming services. These restrictions can include limits on the types of advertising allowed, such as banning ads that target minors, and requirements for warning labels on advertisements.
Data Privacy Regulations: Governments are also introducing regulations to protect the privacy of players’ personal information. This can include requirements for operators to obtain the consent of players before collecting and using their personal information, and penalties for data breaches.
Anti-Money Laundering Regulations: Online real money gaming operators are also subject to / being subject to anti-money laundering regulations to prevent criminal activity and protect the integrity of the gaming industry. These regulations can include requirements for operators to verify the identity of players and report suspicious activity.
These regulations are aimed at creating a safer and more responsible and protected / safe gaming environment for players, and promoting transparency and accountability in the industry. While these regulations may create additional compliance costs for operators, perhaps many would agree that they are ultimately in the best interests of players and the industry as a whole.
What about the Government of India?
In a recent step, the Government of India has just announced a new set of rules for online gaming, particularly distinguishing online gaming from online real money gaming. The purpose of these rules is to ensure that online gaming operators (including social media platforms functioning as online gaming operators) behave responsibly, particularly in relation to players playing on / using their online gaming / online real money gaming platforms, and also, to prevent any misinformation or false information in relation to Government business.
It is of noteworthy significance, that according to these new rules any online game which involves wagering or wagering on outcomes has been banned / prohibited, a ruling which many in the gaming industry are perhaps happy with, because they agree with the stand taken by the Government of India.
NFT Gaming
Now—let us talk a little bit, about one of the latest trends on the internet … NFT gaming …
NFT gaming, or non-fungible token gaming, which is widely gaining popularity on the internet (especially in the realms of Web3 and metaverse-creation) nowadays, has given rise to a new type of video game that incorporates non-fungible tokens (NFTs) as an integral part of its gameplay and economy. NFTs are unique digital assets that are stored on a blockchain, which is a decentralized digital ledger that is secure and transparent.
In NFT gaming, players can buy, sell, and trade NFTs that represent in-game items, characters, and other digital assets. These NFTs can have real-world value and can be traded on various NFT marketplaces. The core mechanism of play-to-earn which involves generating value by in-game growth resulting in a real-life increase in sellable / realizable NFT values is what makes NFT gaming a new and exciting space for online gaming / online real money gaming, which some believe has tremendous ‘game-changing’ potential for the future of the entire gaming industry.
NFT gaming is still a relatively new concept, but it has already gained a lot of attention from both gamers and investors. Some popular examples of NFT games or NFT gaming-ecosystems include Axie Infinity, The Sandbox, and Decentraland. In these games / gaming-ecosystems, players can earn cryptocurrency by playing the game / various games, by buying and selling NFTs, and participating in various in-game activities.
Conclusion
In conclusion, both online gaming and online real money gaming have their own set of pros and cons. Online gaming offers accessibility, variety, and social interaction, but may also lead to addiction, cyberbullying, and exposure to inappropriate content. Online real money gaming provides excitement, skill-based gameplay, and convenience, but carries a risk of losing money and lacks social interaction.
As the gaming industry continues to evolve, it is important for players to be aware of the differences between these two types of gaming and to make informed choices about their gaming habits. It is also important for game developers and regulators to consider the potential risks and benefits of both types of gaming and to work towards creating safe and enjoyable gaming experiences for all players.
And then, there is certainly the promise, of some new and innovative gaming experiences arising out of play-to-earn, real-value generating mechanisms of NFT gaming, that are perhaps yet to be seen … which many hope, will redefine how we understand both—online gaming, as well as online real money gaming …
