Up until now, we have discussed the general overview of the RMG. Our discussion involved the core meaning of RMG and the several modes of RMG. Further, we have also discussed the legal mechanism in India that governs the RMG. Now, it is crucial, for the comprehensive assimilation of various facets of RMG, that we must analyse the socio-economic impact of RMG. This is crucial because only upon analysis of the socio-economic impact of RMG, we can be absolutely and fully equipped with enough understanding of RMG and the pros and cons of its legalisation upon the society. Following are the socio-economic impacts of RMG in India;
- Economic Growth: The RMG industry in India has experienced rapid growth in recent years, contributing to the overall economy. It has created job opportunities and generated revenue through taxation, licensing fees, and investments. Several gaming companies have emerged, attracting both domestic and foreign investments, and contributing to economic development.
The Ministry of Electronics and Information Technology (MeitY) will now oversee the skill gaming sector, according to a recent announcement by the Union government. With this step, a consistent and specific law for India’s online gaming business would be closer to completion, which will encourage investment and safeguard players’ rights. India is one of the four largest gaming marketplaces in the world, and there have been increasing incidences of money laundering and addiction brought on by skill gaming. The action was hailed by the gambling sector since it will give it legitimacy due to regulatory stability. While protecting the interests of expert gamers, whose number has increased from 360 million in 2020 to 510 million in 2022 and generating an expected revenue of INR 154 Billion by 2023, it will also increase investment opportunities.
The market value of the Indian skill gaming industry, according to Statista, was about INR 79 billion in the financial year FY 2021–2022 and is projected to reach INR 150 billion in FY 2023–2024, representing a CAGR of almost 15%. Based on an alternative study from Mordor Intelligence, the Indian gaming industry was anticipated to be worth 79 billion INR in 2020 and is projected to grow to 374 billion INR by 2026, with a CAGR of 20.83 percent over the projection period 2021–2026.
The user base of online gamers in India is quickly growing, with the mobile gaming industry dominating the market. India has the second-largest internet customer base in the world, with more than 560 million users. An overwhelming 85% of the sector is made up of mobile phone users, with personal computer users coming in second place with 11% and tablet users coming in last place with 4%. While Invest India estimates this figure to be 303 million, Mordor Intelligence revealed that in 2021 India had over 220 million gamers who spent an average of 42 minutes per day playing mobile games.
The World Economic Forum (WEF) claims that mobile is the main platform for the Indian gaming sector, with availability to reasonably priced smartphones rising at a rate of 15% per year over the previous five years. Additionally, this tendency has been strengthened by the widespread use of high-speed 4G internet, which is supported by the lowest data rates in the world. This pattern intensified during the Covid-19 crisis, when several lockdowns and limitations altered the Indian online gambling market’s layout. According to a study quoted by Invest India, during the crisis, approximately 45% of mobile users in India started playing games on their cellphones.
The expansion of the gaming industry in India has been made possible by a supportive legislative environment that permits 100 percent foreign direct investment (FDI) in gaming and government initiatives like the “Digital India” program. IBEF reports that since 2010, the number of gaming businesses with operations in India has increased by about 10 times, reaching 275 in 2020. The Mobile Premier League (MPL), Dream11, Nazara Technologies, Halaplay, and Electronic Arts (EA) Sports are all significant participants. A total of 3,000 to 4,000 persons are employed by these businesses directly and indirectly. According to a research by The Economic Times, the gaming sector may generate hundreds of thousands of employments in the near future. There are 920 gaming start-ups in India right now, with Mumbai (Maharashtra) acting as the headquarters for the major companies in this industry.
Gaming-related investments summed up to $544 million in India between August 2020 and January 2021. Growth capital firms like Chrys Capital and TPG have taken part, according to a study by Maple Capital Advisors, and many more have begun to investigate the RMG sector. The Asian e-sports and mobile gaming platform MPL, which is supported by Virat Kohli, just secured US$95 million in a Series D round headed by Composite Capital and Moore Strategic Ventures at a US$945 million valuation. Other major investments include US$68 million made in January 2021 and US$225 million invested in Dream11 (both in September 2020). In September 2021, GameEon Studios acquired funding of INR 25 million to work on Mumbai Gullies, India’s first triple-A game.
In a Nutshell, the summation of aforementioned evidences points towards singular conclusion, i.e., the RMG has been responsible for a substantial upheaval in the Indian Economy. RMG has contributed tremendously to the Revenue and thereby has elevated India’s status in the Global Market.
- Employment Rate: The growth of RMG has led to the creation of direct and indirect employment opportunities. Game development, customer support, marketing, payment processing, and other related services require a skilled workforce. Additionally, the industry has facilitated the development of technological skills, such as software development, data analytics, and cybersecurity, contributing to the overall skill development in the country.
Direct Employment Opportunities:
Real-money gaming has created a considerable number of direct employment opportunities in India. These opportunities range from software development and game design to customer support, marketing, and management roles within gaming companies. For instance, companies like Dream11, India’s leading fantasy sports platform, employ a large number of professionals to manage operations, develop software, and engage with users. These positions provide stable employment and contribute to the growth of the gaming industry in India.
Indirect Employment Generation:
The expansion of the RMG industry has also led to indirect employment generation in various sectors. This includes the growth of ancillary industries such as payment gateways, IT infrastructure, cybersecurity, and content creation. Gaming companies require reliable payment solutions, which in turn creates opportunities for payment gateway providers. Additionally, the need for robust IT infrastructure and cybersecurity measures has resulted in the creation of jobs in these domains. Furthermore, the industry’s demand for engaging content has fostered employment opportunities for content creators and influencers who cater to the gaming community.
Skill Development and Training:
RMG has contributed to the development of specialised skills and expertise in India. The industry requires professionals with knowledge of game development, data analytics, marketing strategies, and customer engagement. As a result, individuals are motivated to acquire these skills through formal education or specialised training programs. Institutes and training centres focusing on game development, analytics, and related disciplines have emerged, providing employment opportunities for trainers and educators. This skill development trend positively impacts the overall employability of individuals in the gaming and tech sectors.
Entrepreneurship and Start-up Culture:
The rise of real-money gaming in India has encouraged entrepreneurship and the development of start-ups. Several successful gaming companies in India have been founded by entrepreneurs who identified opportunities within this growing industry. These start-ups not only create job opportunities for founders and employees but also drive innovation, attract investments, and contribute to economic growth. RummyCircle and MPL (Mobile Premier League) are examples of Indian gaming start-ups that have gained significant traction, generating employment and expanding the gaming ecosystem.
Localization and Regional Employment:
Real-money gaming platforms have realised the importance of catering to regional preferences and cultural diversity in India. They have actively localised their platforms by offering games and content in regional languages. This localization effort has opened avenues for employment in translation, localization, and customer support services, enabling individuals with regional language proficiency to participate in the industry. Consequently, the industry’s expansion has reached rural areas, creating employment opportunities and contributing to regional development.
All in all, RMG has had a multifaceted impact on employment in India. It has not only created direct employment opportunities within gaming companies but has also fostered indirect employment generation in ancillary industries. The industry’s growth has facilitated skill development, entrepreneurial ventures, and the localization of gaming platforms, leading to employment opportunities in diverse sectors. However, it is crucial to balance the positive impacts with regulatory measures to ensure responsible gaming practices and minimise potential negative consequences. By understanding and harnessing the potential of the real-money gaming industry, India can continue to leverage its economic and employment benefits while promoting sustainable growth.
- Social Implications: RMG has gained significant popularity in recent years, both globally and in India. While this form of entertainment offers exciting opportunities for players, it is essential to examine the social implications associated with real-money gaming in India.
Gambling Addiction and Mental Health:
RMG carries the risk of fostering gambling addiction among individuals. The easy accessibility of online platforms and the potential for substantial financial gains can lead some players to develop unhealthy gambling habits. This addiction can have severe consequences on individuals and their families, including financial strain, strained relationships, and mental health issues. Practical examples include cases where individuals have accumulated significant debts or experienced emotional distress due to excessive gambling. The social implications involve the strain on personal relationships, potential loss of productivity in work or studies, and increased burden on mental health support services.
Financial Instability and Disparities:
Real-money gaming has the potential to exacerbate financial instability and widen socioeconomic disparities in India. While some players may experience significant financial gains, many others may suffer financial losses beyond their means. This can lead to financial distress, indebtedness, and further marginalisation of vulnerable individuals or communities. Practical examples can be observed in cases where individuals, especially those with low income or limited financial literacy, become entangled in a cycle of debt due to excessive gambling. The social implications include increased poverty levels, strain on social welfare systems, and disparities in wealth distribution.
Youth and Underage Gambling:
The widespread availability of real-money gaming platforms poses a significant risk of youth and underage gambling in India. Young individuals, including minors, may be attracted to these platforms due to their engaging nature and potential rewards. This can lead to a variety of social problems, including addiction, academic underachievement, and strained family relationships. Practical examples highlight instances where minors have accessed real-money gaming platforms either knowingly or unknowingly, leading to negative consequences such as financial loss or compromised personal development. The social implications include the need for increased awareness, education, and regulatory measures to protect vulnerable populations.
Cultural and Ethical Concerns:
Real-money gaming may raise cultural and ethical concerns within Indian society. Traditional cultural values often discourage gambling, viewing it as a vice that can disrupt social harmony and stability. The normalisation of real-money gaming can clash with these values and generate societal debates. Practical examples can be seen in instances where religious or cultural groups express concerns about the impact of real-money gaming on individual behaviours, family dynamics, and community integrity. The social implications involve the need for ongoing dialogue, responsible gaming practices, and culturally sensitive approaches to address these concerns.
Criminal Activities and Fraud:
The online nature of real-money gaming platforms creates opportunities for criminal activities and fraud. This can include instances of hacking, identity theft, money laundering, and unfair practices within the gaming ecosystem. Practical examples include cases where individuals fall victim to fraudulent schemes or become involved in illegal activities associated with real-money gaming. The social implications involve distrust in the online gaming environment, compromised user safety, and the need for robust regulations and enforcement measures to protect players and maintain the integrity of the industry.
Conclusively, Real-money gaming in India carries significant social implications that must be carefully addressed to ensure a responsible and sustainable gaming environment. The risk of gambling addiction, financial instability, and youth gambling requires proactive measures such as education, awareness campaigns, and robust regulatory frameworks. Additionally, cultural sensitivities, ethical concerns, and the prevention of criminal activities should be considered to maintain social harmony and protect individuals from harm. By striking a balance between entertainment, individual well-being, and societal considerations, India can realise the potential benefits of real-money gaming while mitigating its social implications.
Summing up the entire discourse on the socio-economic implications of RMG, we find that RMG has proved both positively and negatively impactful on the socio-economic status quo of India.
Real money gaming has emerged as a significant contributor to India’s economic growth. The industry has witnessed substantial revenue generation, leading to increased tax contributions to the government. Moreover, real money gaming platforms have created numerous employment opportunities, particularly in the fields of game development, technology, marketing, and customer support. This has not only boosted the job market but has also fueled entrepreneurship and innovation in the gaming sector.
Furthermore, the research indicates that real money gaming has brought about social transformations, both positive and negative. On one hand, these platforms have provided a means for social interaction and community building, fostering connections among players and the formation of gaming communities. Additionally, real money gaming has contributed to digital inclusion by reaching remote areas and promoting technological advancement, empowering individuals to explore the digital ecosystem.
However, it is crucial to acknowledge the negative implications of real money gaming on social life. Excessive participation in these games can lead to addiction, financial risks, and strained interpersonal relationships. The addictive nature of real money gaming poses challenges for individuals in maintaining a healthy balance between gaming and other aspects of life.
To mitigate these risks and maximise the positive impact, it is essential to implement responsible gaming practices and regulations. Government authorities, gaming industry stakeholders, and the players themselves need to prioritise measures that promote responsible gaming, such as age restrictions, monitoring and control mechanisms, and educational campaigns on the risks associated with excessive gaming. Overall, the research underscores the complex and multidimensional impact of real money gaming on India’s economy, employment rate, and social fabric. As the industry continues to grow, it is crucial to strike a balance between its economic benefits and the potential negative consequences, ensuring that the development of the real money gaming sector aligns with sustainable and socially responsible practices. By doing so, India can harness the potential of real money gaming while safeguarding the well-being of individuals and society at large.
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