India's gaming market expanded 17% year-over-year to roughly $1.5 billion following the government's prohibition on real-money gaming (RMG), according to a new report from Mumbai-based gaming investor Lumikai.

The reading defies early forecasts that the ban — which removed fantasy sports, paid rummy, and other real-money formats from storefronts — would compress sector revenue. Lumikai's State of India Gaming report attributes continued growth to mid-core and casual segments absorbing spending through in-app purchases and advertising.

What does the RMG ban change for studios?

India's framework, routed through a designated Self-Regulatory Body for compliance and grievance, reshaped which monetization mechanics studios can deploy in-market. Operational changes observed since the regulation took effect:

• Real-money entry fees and cash-out loops are prohibited in sanctioned formats
• In-app purchase and ad-supported models now dominate revenue
• Several previously top-grossing titles operate only on direct-to-consumer web distribution or have exited the country
• Whitelisted online real-money games must verify user identity and adhere to grievance timelines

For studios building new mobile titles, the operational consequence is a market where premium casual, mid-core autobattlers, battle-royale shooters, and social-casino-adjacent formats without real-money stakes represent the primary growth corridors.

Who is reading the market this way?

Lumikai was founded in 2018 and operates from Mumbai, investing from successive vehicles into mobile studios, game-tech infrastructure, and consumer platforms. Its annual State of India Gaming report is cited by developers, publishers, and infrastructure providers sizing regional opportunity.

The 17% growth figure represents one of the first post-ban readings of full-year market performance. Independent measurement from Sensor Tower, data.ai, and Niko Partners will provide a corroborating or contrasting view over the next two quarters.

Where studio revenue sits now

The category mix in mobile India has shifted. Fantasy sports, which once occupied multiple top-grossing slots on Google Play, is no longer available in sanctioned form. Casual match-3 and hyper-casual downloads continue to expand on smartphone shipments in the sub-INR 15,000 hardware tier, with ad mediation from Google, Meta, and regional partners capturing most inventory.

Mid-core formats — autobattlers, MOBAs, and 5v5 shooters — now depend on in-app purchase conversion and live-ops events to drive ARPPU without the RMG cross-subsidy that previously lifted certain casual titles. Console and PC revenue remains a small share, with India outside the top fifteen on PlayStation and Xbox storefronts but inside the top five on Steam by user count.

What to watch

The structural test for India's market is whether mid-core and casual segments keep compounding without real-money revenue support. Quarterly reads from Google Play and Apple App Store leaderboards will reveal whether casual and mid-core ARPPU continues rising, or whether hyper-casual ad revenues plateau as supply of new titles outpaces demand. Investor behavior at the fund-commitment level — specifically how Lumikai and its peers size their next vehicles — will be the cleanest read on whether post-ban India remains structurally attractive for international publishers and local studios.