India’s gaming sector has witnessed astounding growth catalysed by affordable smartphones, low data costs, and Covid-19 restrictions, with over 450 million online gamers growing at 38% annually, making India the second-largest market globally. In 2023 alone, India registered 9.5 billion game downloads and employs approximately 100,000 people, projected to grow to 2,50,000 by 2025. As reported by “Guardians of Safe Play: Ethical Gaming for Vibrant Bharat” by Thorton Bharat and the E-Gaming Federation, India has surpassed China’s user base, solidifying its powerhouse in the gaming ecosystem. The mobile gaming downloads in India soared to 9.66 billion in 2023, up from 5.2 billion in 2022. Popular games like Ludo King and Free Fire Max amassed millions of downloads, cementing India’s role as one of the largest mobile gaming markets in terms of downloads. However, this rise in usage has revealed a darker side, with around 3.5% of Indian adolescents struggling with Internet Gaming Disorder (IGD).

This article examines the rapid expansion of India’s gaming industry, its societal impact, and the associated risks—particularly those affecting young gamers. Projection suggests the gaming industry will continue to grow, fuelled by companies like Game24X7, Dream11, and Mobile Premier League. The DFC Intelligence Report 2023 estimates the market will reach $177.8 billion globally by 2030, with India’s share anticipated to grow to $8.6 billion by 2026. Understanding the balance between innovation and well-being is crucial to shaping a sustainable, ethical gaming ecosystem.

Online gaming presents numerous security challenges, particularly with the increasing trend of in-game purchases, making young players prime targets for financial fraud. Cybercriminals leverage social engineering techniques and technical vulnerabilities to steal personal information, exploit unauthorised transactions, and mislead players into unnecessary spending. Multiplayer games, while enhancing user engagement through chat and voice functionalities, create opportunities for cyberstalking and harassment, which is particularly concerning for young and vulnerable users.

Another pressing issue is the exposure to age-inappropriate content. Despite age ratings, many games offer unrestricted access to violent or explicit material. Limited parental controls leave children and teenagers exposed to content that can negatively impact their emotional and psychological well-being, often desensitising them to violence or inappropriate themes. Furthermore, extremist groups have increasingly exploited gaming platforms for covert communication, using these spaces to disseminate radical ideologies, recruit individuals, and even run training simulations.

While these risks are well-documented, several factors contribute to their unchecked nature. Cybercrime laws often fail to keep up with the rapid technological developments in gaming, leading to ambiguity in enforcement. Crimes like fraud and harassment in virtual worlds frequently fall into legal grey areas, making it difficult for authorities to prosecute offenders effectively. Additionally, gaming platforms often rely on easily bypassed, self-reported age verification mechanisms. This lack of robust verification allows minors to access mature content, further exposing them to exploitation and harmful material.

Minimal regulation of gaming content exacerbates the problem. Violent or explicit themes are often widely accessible, and inconsistent application of content guidelines across countries enables harmful material to circulate unchecked. Compounding this issue is the absence of unified global standards for regulating content, age restrictions, or data privacy. Online gaming transcends borders, yet the lack of international oversight forces jurisdictions to handle these issues independently, often resulting in fragmented and inadequate responses.

Regulatory ambiguity further complicates matters. Uncertainty over whether gaming falls under entertainment, gambling, or a distinct category creates gaps in regulation and prevents effective collaboration 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 ads often target young users and can be inappropriate or lead to fraudulent websites. Without stringent controls, in-game ads may expose minors to unsuitable material or deceptive schemes, further compromising their safety.

In India, the government has recognised the growing 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 safer gaming environment for all users.

India has made significant strides 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 regulations under the Information Technology Rules, classifying gaming platforms as intermediaries subject to content regulation and age restrictions to protect users from addiction, financial fraud, and inappropriate content.

To encourage industry self-regulation, India has supported the formation of bodies like the E-Gaming Federation (EGF) and the All-India Gaming Federation (AIGF). These organisations establish guidelines to promote responsible gaming, protect data, and enhance financial transaction transparency, reducing fraud and data misuse risks. Additionally, to safeguard 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. Cybercrime reporting has improved with resources like the National Cyber Crime Reporting Portal and a national helpline, making reporting incidents swiftly and receiving support easier.

Financial transaction security in gaming has been bolstered by the Reserve Bank of India’s (RBI) guidelines mandating two-factor authentication, which enhances security in gaming-related purchases and curbs unauthorised transactions. Legislative efforts to regulate online gaming, such as laws introduced in Tamil Nadu and Karnataka, aim to address gambling-related risks and manage addiction, especially among young users. Additionally, India’s forthcoming Data Protection Bill will enhance user privacy by enforcing strict data management practises on gaming platforms.

The government collaborates with the gaming industry to create safer environments, incorporating Artificial Intelligence-based content moderation, cybersecurity measures, and user protection features. While these initiatives are still evolving, India is paving the way for a responsible and safer online gaming landscape, balancing growth with essential regulations.

A framework prioritising user safety and transparency is essential to promoting the responsible growth of the online gaming industry. Governments must strengthen regulatory frameworks and update cybercrime laws to address risks like in-game fraud, cyberbullying, and harassment. Collaboration between gaming companies, law enforcement, and policymakers can standardise definitions and penalties, ensuring offenders face justice. Implementing robust age verification and parental controls on gaming platforms is also crucial to restrict access to age-inappropriate content and empower caregivers to monitor young users’ exposure to potentially harmful material.

Given the global nature of online gaming, establishing unified content guidelines, age restrictions, and data privacy protections through a worldwide regulatory body is vital. This coalition, representing major gaming markets, could set standards to create a safer worldwide gaming environment. Furthermore, platforms must enhance data security, employing advanced cybersecurity protocols, audits, and encryption to protect users from data breaches and financial exploitation.

Digital literacy initiatives can further protect users by educating them, especially young players, on recognising digital threats. Schools and community organisations can collaborate to foster safe gaming practises. Regulating in-game advertising is also essential to prevent exposure to inappropriate or deceptive content, with ad filters and age verification enhancing protection for young users.

Promoting responsible gaming practises through tools that help users track playtime, spending, and other in-game activities can support mindful gaming, reducing addiction risks. Finally, partnerships with law enforcement are necessary to tackle extremism on gaming platforms, where monitoring protocols can identify and report suspicious activity, safeguarding users from radicalisation.

By adopting these measures, the gaming industry can foster a safe, inclusive, and sustainable gaming environment, balancing innovation with accountability and safeguarding the well-being of its global user base.

The gaming industry’s achievements come with the responsibility to protect users from its inherent risks. The rapid expansion of online gaming, while creating a robust economic and entertainment sector, has also introduced significant security vulnerabilities. Establishing cohesive international standards, robust age verification systems, and clear cybercrime definitions is critical to addressing these threats. Without such safeguards, the gaming industry’s potential to engage and entertain risks becomes overshadowed by security concerns, turning what should be a safe space for enjoyment into a source of potential harm. As the industry continues its upward trajectory, proactive measures are essential to ensure that online gaming remains an enriching experience for all, particularly the young users of its largest demographic.

This article is authored by Soumya Awasthi, fellow, Observer Research Foundation, New Delhi.