Real Money Gaming Apps Gone, But There Could Still Be Real Money In The Sector

Real money gaming is over, and with that, a bulk of sports sponsorship in India. But all is not lost. New revenue models can bring in real and some serious money. It's also time for sports managers to get creative. Real Money Gaming has been banned by the act, and with that, thousands of crores of rupees in revenue has also been wiped out. But experts say that new revenue models are all set to spring up, which, by the way, will be legal in India.

Speaking to the Tea Toast and Sports Podcast on NDTV, Sports Lawyer Nandan Kamath says, "The bill is interesting. It prohibits online gaming when it's in a paid format. That means you can no longer put money in with a desire to win more money. But what this leaves open is subscription-based games where the winning is not money. On the other hand, you can have a free game where there is prize money perhaps at the end. So there is going to be an opportunity for a reassessment of certain business models."

In-app purchases, premium subscriptions, and, crucially, advertising revenue from brands seeking to reach gaming audiences can fetch companies good money. Mr. Kamath says, "Many of the gaming companies have done very well over recent years. They've also raised capital. They have large user bases too. My guess is that these companies will probably quite successfully re-utilize them in completely different ways with new ways of fan engagement."

It is also time for the new breed of sports managers to think about fan engagement in newer ways like ticketing and merchandising. On Tea Toast and Sports, Nandan Kamath delves deep into the correction that is expected.

He says, "We've been a very sponsorship-dependent sports ecosystem, whatever the tournament, whatever the league. We've not really been able to capture media rights value other than in the IPL. So, really trying to figure out how to make media rights work for leagues and tournaments but also ticketing and merchandising. We've not looked at a lot of the more fundamental revenue streams in sport, which need a lot more strategic work, a lot more effort, and a lot more thinking. Now, we are playing at a reasonably superficial level with sponsorships."

While cricket sponsorship is set to experience a correction, the new regulations will be a shot in the arm for e-sports. E-sports, valued at $209 million in 2024, is projected to grow five-fold to $1.17 billion by 2034. Some companies are already expanding their sponsorship commitments.

The online gaming industry may not grow to Rs 32,000 crore by the end of 2027, as was projected by EY, but the game is far from over.