The report also talks about Real Money Games (RMG), which refers to an online skill game where users deposit, either in cash or kind, with the expectation of earning winnings on that deposit.

This sector plays a significant part in the online gaming industry, as it contributes 83-84 per cent of its revenue. With about 90 million pay-to-play and around 100 million daily online gamers, the sector is supported by over 400 homegrown start-ups.

Interestingly, more than 500 million of online users are primarily engaged in Casual Games (for example Candy Crush, Temple Run etc).

Earlier, there was an 18 per cent tax on platform fees and it generated an annual contribution of Rs 1,700 crore, but later it was replaced with a 28 per cent tax on deposits.

The online gaming market encompasses RMG, Casual and Hyper Casual Games, Midcore and Hardcore Games, and E-sports.

Arvind Gupta, the Head and Co-Founder of Digital India Foundation stated that it is critical to take urgent action against money laundering that is impacting this sunrise industry.

“Despite ongoing regulatory efforts to curb illegal operators, many platforms circumvent restrictions through mirror sites, illegal branding and disproportionate promises, highlighting the pressing need for stronger oversight and enforcement.”

He pointed out that the sector employs directly and indirectly approximately one lakh individuals, with the potential to create 250,000 jobs by 2025.