By Satyam Rastogi, Founder and CEO, Khiladi Adda
Esports has evolved to be a widely recognised global sector today, and India hasn’t remained untouched by this growth trend. In recent times, the esports industry has experienced extensive growth, in popularity, moving from the fringes of digital entertainment to a mainstream phenomenon. The impacts of esports on the Indian economy have begun to reverberate within a legacy, touching on several sectors such as startups, media, sponsorships, and tourism, to name a few. This article explores how esports are redefining India in its economic landscape and driving growth across industries.
The Rise of Esports in India
India, a country historically passionate about cricket, is experiencing a significant shift in its sporting preferences, with esports gaining traction. The rise of digital gaming in India can be attributed to several factors, including the increasing number of smartphone users, affordable internet, and the emerging youth culture that gravitates towards online entertainment. These elements have created the perfect environment for esports to thrive.
The COVID-19 pandemic played a pivotal role in the accelerated growth of esports in India. As traditional sports events were restricted due to health concerns, online gaming emerged as a primary source of entertainment. What were once small-scale esports tournaments transitioned to virtual platforms, drawing large, engaged audiences and providing an alternative to in-person sporting events. This shift marked a significant turning point in the popularity of esports in the country.
Economic Contributions of Esports
1. Startups and Job Creation
Esports has given birth to a thriving startup ecosystem in India. Now, game development companies, esports organisations, streaming platforms, and even tech firms have cropped up to capitalise on the trend. Prominent names like Team India, Global Esports, and T1 Esports India have opened up many career opportunities within esports for players, managers, analysts, content creators, and event organisers. The ecosystem empowers entrepreneurs to build innovative brands in competitive gaming, enhancing India’s digital economy. Streaming platforms have emerged as one of the most rapidly developing sub-sectors of India’s esports economy. Platforms such as Loco, YouTube Gaming, and Twitch offer gamers a platform for sharing their gameplay and allowing them to monetise content through advertising, memberships, and donations. For example, Loco, a leading Indian platform, has experienced significant growth by providing native content and live streaming of tournaments. YouTube Gaming and Twitch are among the esports events platforms offering job openings to streamers, content creators, and the event managers themselves. As the demand for esports content grows, these platforms play a crucial role in Indian economic development and provide a diverse range of career opportunities.
2. Sponsorship and Advertising
The rise of esports in India has caught the attention of major brands and advertisers. Companies from various industries, including tech, consumer goods, and even traditional sports, are now sponsoring esports teams and events. In recent years, major corporations including PepsiCo, Coca-Cola, and Intel, among others, have been working with esports events, recognising the potential of a young, highly engaged audience. These sponsorships drive the industry forward, providing tremendous exposure and generating new business ventures.
Sponsorship contracts are now a major source of income for esports teams and event companies. Esports tournaments generate millions of dollars in sponsorship, which in turn help support esports as a serious business endeavor. This investment “rush” in turn promotes the expansion of supporting services, including, but not limited to, event management, broadcasting, and merchandise sales, thereby generating economic “waves” throughout the society.
3. Media and Content Creation
Esports has become an integral part of India’s media landscape. Streaming platforms like YouTube Gaming and Twitch have millions of esports-focused channels, attracting viewers who tune in to watch their favorite players and teams. The growth of online streaming has turned content creation into a lucrative career option for many aspiring gamers and influencers.
Moreover, esports is now a staple on television networks like Sony LIV and Disney+ Hotstar, where high-profile events are broadcast to a wider audience. With growing viewership numbers, esports content is becoming a profitable endeavor for media companies, opening up new revenue streams from advertising and broadcasting rights.
4. Challenges and Future Outlook
One of the biggest challenges coming up on the developing esports platform in India is regulation. As much as some states have defined esports as a sport, there exists no national framework that uniformly governs it. Such ambiguity in regulatory needs hinders investment and general growth of the industry. Another challenge would be the gaping infrastructure. While major cities have seen improvements, many regions still lack the necessary facilities to host large-scale esports events. Continued funding and investment in infrastructure and the development of regional talents remain necessary for the full potential of esports to be realised.
Nevertheless, the future of esports in India holds great promise. The continued rise of mobile gaming, the increased Internet penetration, and a youthful, tech-savvy population have laid the proper groundwork for further progress. Esports is meant to play a significant role in developing the digital economy in India through job creation, innovative capacity building, and attracting foreign investment.
The growth of esports in India has transitioned from being a niche hobby to a dynamic industry contributing to economic growth. However, it has only just begun, with newly emerging startups in the realm of digital media intersection of sponsorship and tourism that assert the transformative nature of digital games. Challenges still abound, but the rapid development sector’s foundation suggests that esports will be among the critical ingredients in India’s economic future. With the maturation of this industry, there would also be an opportunity to develop a dynamic and inclusive digital culture for the country in addition to the economic benefits.
The Role of Real Money Gaming in Esports
The integration of real money gaming (RMG) into the esports domain has added a compelling dimension to the rapidly growing industry. Sports tournaments, traditionally driven by skill and competition, now see a burgeoning overlap with the RMG sector, which brings unique engagement and monetisation opportunities.
Driving Engagement through Esports Tournaments
RMG platforms have strategically aligned with esports to create highly engaging ecosystems. By hosting and sponsoring tournaments, these platforms attract a larger player base and retain user loyalty. Prize pools funded by RMG platforms act as significant incentives for participation, drawing both casual and professional gamers. Additionally, platforms often feature exclusive in-app events tied to esports, enabling players to monetise their skills while enjoying the thrill of competitive gaming.
Synergies between RMG and Esports
This symbiotic relationship extends beyond tournaments. RMG platforms leverage esports’ massive audience base to promote games that blend real money gaming mechanics with traditional competitive formats. For instance, games with leaderboards tied to cash rewards or events encouraging in-app purchases during esports events have seen increased adoption. This cross-pollination not only amplifies the visibility of RMG platforms but also supports the esports ecosystem by generating sustainable revenue streams.
Challenges and Opportunities
While the RMG-esports nexus is thriving, challenges such as regulatory ambiguities and ethical considerations persist. Balancing engagement strategies with responsible gaming practices remains crucial for sustained growth. However, with India’s youthful, tech-savvy population and increasing internet penetration, the opportunities for RMG and esports to co-evolve are vast. This convergence promises economic benefits but also a pathway to elevating esports by incentivising better performance and increasing the prospect of converting it into a mainstream professional pursuit.
