The Indian gaming industry is experiencing rapid growth, projected to expand by 20% year-on-year, reaching an estimated Rs 25,300 crore by the end of the 2024-25 financial year. This forecast comes from a recent report titled “Guardians of Safe Play: Ethical Gaming for Vibrant Bharat,” published by Grant Thornton Bharat in collaboration with the E-Gaming Federation (EGF).
The Need for Ethical Standards and a Code of Conduct
The report emphasizes the importance of establishing a detailed code of conduct within the gaming industry. Such a code would define ethical standards, ensuring accountability and transparency among stakeholders. It aims to address critical risks, including cyber threats, regulatory uncertainties, and financial risks, by mandating best practices that support the industry’s sustainability and growth.
Regulatory Oversight and Market Trends
In recent months, there has been increased scrutiny from regulatory bodies, particularly concerning gaming apps offering virtual trading services and fantasy games tied to real-time stock prices. This crackdown reflects a broader trend of regulating the burgeoning sector, which has seen a surge in investment interest. Over the past five years, the industry has attracted $2.8 billion from domestic and international investors.
Investment Surge in Indian Gaming Ventures
The South Korean game developer Krafton has been a significant investor in the Indian gaming scene, injecting around $140 million into 11 gaming and content ventures, including prominent names like Nazara Technologies’ unit Nodwin Gaming, Pratilipi, KukuFM, and Loco. This investment spree is set to continue, with Krafton planning an additional $150 million investment over the next few years.
Nazara Technologies, a listed gaming and media firm, recently raised Rs 760 crore from various investors, including Zerodha cofounder Nikhil Kamath, SBI Mutual Fund, ICICI Prudential Mutual Fund, and Plutus Wealth Management. This influx of capital underscores the growing confidence in the Indian gaming market.
The Call for Third-Party Certification and Player Protection
The report advocates for third-party certification to encourage self-regulation and uphold industry standards. Shalabh Saxena, a partner at Grant Thornton Bharat, highlighted the importance of rigorous audits and self-regulation as a demonstration of stakeholders’ commitment to integrity and trust within the gaming community. The report also stresses the need for strong player protection mechanisms, including proactive measures and educational initiatives.
Collaboration for a Safer Gaming Environment
To create a safer gaming environment, the report calls for collaboration among industry players, regulators, and policymakers. This collaborative approach is essential to fostering a vibrant digital environment that upholds the highest standards of integrity and inclusivity, benefiting players of all ages.
Conclusion
As the Indian gaming industry continues its upward trajectory, the focus on ethical standards, regulatory oversight, and investor confidence will be crucial in shaping its future. By adhering to a robust code of conduct and promoting self-regulation, the industry can ensure a sustainable and secure environment for all stakeholders.