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The Real Money Gaming (RMG) industry is expressing disappointment over the Ministry of Information and Broadcasting (MIB) showing indifference to its participation in the upcoming World Audio Visual & Entertainment Summit (WAVES), scheduled for February in Delhi. Furthermore, RMG representatives have not been granted a meeting with the MIB in over two months.

The WAVES 2025 will be held from February 5–9 in New Delhi, focusing on four key pillars: Broadcasting & Infotainment, Digital Media & Innovation, AVGC-XR, and Films.

The E-Gaming Federation (EGF) recently introduced CityQuest: Shades of Bharat in collaboration with the MIB as part of the "Create in India Challenge" for WAVES 2025. Originally intended to launch during the WAVES, the game is co-powered by Games24x7, one of the country’s leading RMG players. However, EGF launched the game without the presence of Sanjay Jaju, Secretary, Ministry of Information and Broadcasting. Sources claim that MIB has refused to be seen beside RMG players at the summit. 

An RMG representative told Storyboard18, “The bureaucrats seem open to including RMG as part of WAVES, but the I&B Minister, Ashwini Vaishnaw, remains hesitant. We have been waiting patiently for a platform to showcase our contributions to the industry.”

It’s noteworthy that the Game Developers Association of India (GDAI) has partnered with the MIB to highlight various video game launches at the event, while the Esports Federation of India (ESFI) is working with the ministry to organize an esports championship. However, the RMG sector has no representation at WAVES.

India’s gaming market grew 23% year-over-year (YoY) by revenue, reaching $3.8 billion in the 2023-24 fiscal year, despite a 28% blanket goods and services tax (GST) imposed on online gaming, according to a report by gaming-focused venture capital firm Lumikai. The report highlighted that RMG remains the primary revenue driver for the industry, contributing $2.4 billion of the total. In-app purchases were the fastest-growing segment, increasing by 41% YoY. RMG firms managed to add $400 million to their topline in FY24 despite absorbing the GST burden, thanks to a packed live sports calendar that included two world cups and the IPL.

Another RMG representative, speaking anonymously, shared, “It’s disheartening that despite being a significant contributor to the gaming industry’s growth, the government continues to ignore us. We pay substantial taxes yet have no platform to showcase our progress.”

“The government needs to resolve its internal disagreements within the MIB to support the growth of the RMG sector,” the representative added.

The RMG industry faces ongoing legal challenges in Indian courts, with no clear outcomes. A source close to the matter revealed to Storyboard18 that the MIB is reluctant to promote RMG as an industry due to these pending legal cases.

Storyboard18 was the first to report the Indian government’s decision to separate RMG from the broader video gaming sector. Under this policy, RMG platforms will be overseen by the Ministry of Electronics and Information Technology (MeitY), while video games for entertainment and content will remain under the MIB’s jurisdiction.

The source further explained, “The MIB has refused to engage with the RMG sector. For over two months, neither industry federations nor individual players have managed to secure meetings with MIB officials. This clearly demonstrates their intention to treat RMG as distinct from the video gaming industry.”

Earlier, on September 6, the Department for Promotion of Industry and Internal Trade (DPIIT) had sent a letter to MIB, MeitY, and NITI Aayog seeking clarity on distinguishing between games of skill and games of chance. This distinction is crucial for drafting a policy formalizing 100% Foreign Direct Investment (FDI) in online gaming.

The proposed policy would permit full FDI in online real-money gaming, provided the investments exclude betting or gambling activities. NITI Aayog, India's premier policy think tank, is working to establish these definitions to ensure a robust long-term framework for the gaming ecosystem.

The ongoing discord between the RMG sector and the MIB highlights a significant divide in how the gaming industry is perceived and supported in India. An expert said that collaboration, rather than exclusion, should be key to drive unified vision for the online gaming industry’s future.

RMG players sidelined by MIB for WAVES, seek equal treatment

Dream Sports Foundation (DSF), the philanthropic arm of Dream Sports, has announced a five-year partnership with the Mumbai School Sports Association (MSSA). As per DSF, the collaboration will span across 20 sports with a focus on Hockey, Football, Cricket, Athletics, Table Tennis and Badminton.

MSSA has played a historic role in the growth of sports in the city with legends like Dilip Vengsarkar, Sachin Tendulkar, Ajit Agarkar, Yashasvi Jaiswal, Prithvi Shaw, Chirag Shetty and many more, participating in tournaments in their youth. 

This association with MSSA marks a significant step in DSF's effort to elevate the quality and competitiveness of youth sports. By combining MSSA's grassroots network with DSF's commitment to sporting excellence, this 
partnership aims to set new standards for organizing sporting tournaments. These efforts align with the goals outlined in the National Sports Policy 2024, by the Government of India. 

Bhavit Sheth, Chief Operating Officer and Co-Founder, Dream Sports said, “We’re thrilled to partner with an association that is integral to Mumbai’s grassroots sporting culture and has made the city proud. In line with our vision to Make Sports Better, we’re excited to support young athletes and help unlock their potential while contributing to India’s vision of becoming a sporting superpower.”

Through this partnership, DSF will help MSSA promote fitness and discipline among thousands of school going students in Mumbai while enhancing the quality of their existing championships. Going forward, DSF under this partnership will curate training programs for young athletes, PE teachers and coaches. 

Rev. Fr. Jude Rodrigues, President, Mumbai School Sports Association said, “We are excited to take another step forward in improving Mumbai’s sporting future by joining hands with Dream Sports Foundation. This collaboration will help Mumbai athletes stay ahead of the curve while adhering to the foundation's vision and mission. This partnership marks the beginning of an exciting journey to add to Mumbai's illustrious sporting legacy.”

Dream Sports Foundation partners with MSSA to grow Mumbai as a sports hub

NODWIN Gaming has announced that its parent company, Nazara Technologies Limited, has approved an investment of Rs 64 Crore in NODWIN Gaming. Prior to this investment, as of Nov 2024, Gurgaon-based Nodwin Gaming was valued at Rs 3,441 Crore. 

In addition to Nazara, Krafton, JetSynthesys and Sony Group are existing shareholders in NODWIN Gaming.

NODWIN Gaming's Board has approved plans to initiate a private financing round to accelerate the company's vision of becoming the new age youth media, gaming and esports firm across emerging markets. As the first investor backing this investment, NAZARA and NODWIN boards have both ratified this investment that is in the form of convertible preferred stock.

Akshat Rathee, Co-founder and MD, NODWIN Gaming said, "We would like to extend our sincere gratitude to Nazara Technologies for their unwavering support and trust in the NODWIN Gaming vision every step of the way. Their belief in our mission has been instrumental in driving our progress and success. As we continue on our growth and expansion journey, we remain fully committed to building a truly global company coming from India that leads with innovation, expanding our capabilities in New age media in emerging markets. Our focus is on capturing the attention and Timeshare of Mindshare of the global youth."

As per the company, the funds raised in this round will be primarily allocated to fuel NODWIN Gaming’s ongoing expansion momentum, focusing on enhancing its capabilities, growing its portfolio of intellectual properties (IPs), and strengthening its presence in emerging markets. 

In Q2 FY24, revenue grew 91% on a QoQ basis and 111% on a YoY basis. Recently, NODWIN has expanded its portfolio with several strategic acquisitions, including the German esports and gaming marketing agency Freaks 4U Gaming, events company Comic Con, West Asia and Turkey-focused marketing agency Publishme, Singapore-based live events firm Branded, and Turkish esports and gaming company Ninja Global.

NODWIN Gaming secures Rs 64 Crore investment from Nazara Technologies; valuation reaches Rs 3441 Crore

The Advertising Standards Council of India (ASCI) has taken a strong stance to curb the menace of social media influencers rampantly violating its guidelines. The self-regulatory body will now focus heavily on influencer activities for the next two quarters. 

Storyboard18 had reported about social media influencers blatantly disregarding strict ASCI guidelines by pushing crypto advertisements without disclaimers. 

Manisha Kapoor, Secretary General and CEO of ASCI said, “We have not received complaints against ads of influencers promoting crypto products in the recent past. Influencer activities will be in in focus for our next two quarters for suo motu surveillance.” 

Kapoor further said, “To ensure a safe digital environment for consumers, it is important for influencers to be aware of their responsibilities and ensure they adhere to the requirements mandated by ASCI and the government.”

According to ASCI guidelines, all virtual digital asset-related advertisements released on or after April 1, 2022, must include the disclaimer, "Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions." This disclaimer must appear in promotional content across print, video, and audio mediums.

Despite these regulations, ASCI reported that over 400 cryptocurrency advertisements featuring influencers violated their guidelines in 2022.

Storyboard18 spoke to a renowned social media finfluencer with a follower base of over 1 million, he said, “The top influencers follow all guidelines which are laid by government including SEBI and ASCI. However, the micro influencers who often struggle to monetize their content fall into the trap of notorious companies indulging in betting and gambling.” 

The finfluencer said, “Often such influencers end up promoting fly-by-night crypto companies in lure of money. This is basically a quick earning formula for an influencer which often can land them in huge legal trouble.” 

The Central government in January 2023 made it mandatory for social media influencers to disclose all "material" interest such as gifts, hotel accommodation, equity, discounts and awards when endorsing any products, services or scheme, failing which strict legal action, including ban on endorsements can be taken.

In case of violation, the penalty prescribed for misleading advertisement under the Consumer Protection Act 2019 will be applicable. The Central Consumer Protection Authority (CCPA) can impose penalty of up to ₹ 10 lakh on manufacturers, advertisers and endorsers. For subsequent offences, penalty of up to ₹ 50 lakh can be imposed.

The CCPA can prohibit endorser of a misleading ad from making any endorsement for up to 1 year and for subsequent contravention, prohibition can extend up to 3 years.

<a href="https://www.storyboard18.com/brand-marketing/influencers-push-crypto-ads-in-rampant-violation-of-asci-guidelines-49176.htm">Read more: Influencers push crypto ads in rampant violation of ASCI guidelines</a>

Social media influencers under ASCI's radar for next two quarters

Nazara Technologies Limited has unveiled a series of strategic investments aimed at solidifying its position in the gaming and entertainment ecosystems. 

Nazara has announced new Investments in Funky Monkeys & Learntube.ai

Nazara has expanded into physical entertainment with the acquisition of a 60% stake in Funky Monkeys Play Centers Private Limited, which focuses on indoor soft play centers for children, for Rs 43.7 crores. Funky Monkeys operates 11 centers across India, offering interactive play experiences for children.

Co-founders of Funky Monkeys, Binita Putcha and Sanjay Ghadiali, said: “We are excited to join hands with Nazara, whose vision for digital and hybrid entertainment aligns closely with ours. With Nazara’s expertise and resources, we are confident we can scale Funky Monkeys and bring even more joy to children and families across India. We also see synergies with digital IP’s owned by Nazara such as Kiddopia and will work to maximise these opportunities”

Nazara will also invest Rs 4.2 crores for a 4.7% stake in Learntube.ai, an AI-powered platform revolutionizing education with 1:1 interactive and gamified learning. Catering to over 20 lakh learners, LearnTube is the world largest personalised learning platform that offers affordable, interactive gamified learning experiences for professional skilling.

"LearnTube’s collaboration with Nazara is a bold step forward in reshaping professional learning and interactive media. We are excited to combine forces to lead innovation on a global scale," said Shronit Ladhani, Co-founder, LearnTube.

Nazara has Increased its shareholding of existing companies

Nazara will invest Rs 148 crores in its existing subsidiaries including Sportskeeda, Nodwin Gaming, and Datawrkz to increase its ownership in them and support their growth.

Nodwin Gaming: Nazara will invest Rs 64 crores through subscription of Optionally Convertible Preference Shares to bolster Nodwin’s growth. The funds will support Nodwins expansion, enhance its intellectual properties (IPs), and strengthen its footprint in emerging markets.

Absolute Sports (Sportskeeda): Nazara will invest INR 69 crores to purchase shares arising from exercise of ESOPs from the Sportskeeda management to increase its stake to 100% in the company making it a wholly owned subsidiary.

Datawrkz: Nazara granted in-principle approval for an investment of Rs 15 crores in Datawrkz through the subscription of Compulsorily Convertible Cumulative Preference Shares to support ongoing growth of Datawrkz

Speaking on these investments, Nitish Mittersain said: “Nazara is committed to building the largest diversified gaming and entertainment platform out of India and many of our initiatives announced today are geared towards propelling profitable growth in these strategic areas of our interest.”

Nazara announces five investments totalling Rs 196 crores

With another debate over skill-based versus chance-based games gaining traction, particularly following Winzo’s case against Google at the Competition Commission of India (CCI), the conversation around Real Money Gaming (RMG) has taken a new turn. Adding to the complexity, the Skillhub Online Gaming Federation (SOGF) has initiated efforts to promote Rummy—a card game—as a competitive sport.

SOGF aims to position Rummy as a “mind sport,” akin to esports tournaments played in LAN setups. However, the esports industry has largely rejected this notion, reigniting the long-standing debate over whether Rummy should be classified as a skill-based or chance-based game. Esports industry question whether lack of regulations would also lead to promoting games such as Ludo and Snakes and Ladders as a sport and address players as athletes. 

In September 2024, the Bombay High Court heard a Public Interest Litigation (PIL) seeking to ban online Rummy platforms, such as Junglee Rummy and RummyCircle, in Maharashtra. The petitioner, Ganesh Ranu Nanaware, argued that online Rummy constitutes gambling, prohibited under Indian laws like the Public Gambling Act of 1867 and the Bombay Prevention of Gambling Act of 1887.

The respondents, including the State, Google, and gaming platforms, contended that Rummy is a game of skill, not chance, and thus does not qualify as gambling. Citing various court rulings, they emphasized that Rummy demands strategy, mental acuity, and expertise. The Bombay High Court has directed respondents to file affidavits explaining why Rummy qualifies as a skill-based game.

Sibtan Baqri, CEO of SOGF, stated, “Rummy is much more than a traditional card game; it is a sport—technically a mind sport—grounded in strategy, logic, and cognitive skill. Recognized by the Supreme Court of India as a skill-based game, we view Rummy as part of our cultural heritage that has evolved into a modern competitive platform, particularly in its online format.”

Baqri further explained that SOGF sees skill-based card games and esports as complementary yet distinct domains within Mind Sports. “Mind Sports like Chess and Rummy focus on cognitive development and strategic thinking rooted in tradition, while esports represents the modern, tech-driven competitive gaming frontier. Together, they form a holistic landscape for skill-based engagement.”

In contrast, Manoj Kasyap, owner of Velocity Gaming, argued, “I don’t think Rummy qualifies as an esport or a sport. To me, any card game involves gambling, and there must be a clear distinction between esports, which are skill-based games, and other casual games.”

He added, “Without proper regulation, I hope we don’t start categorizing games like Ludo or Snakes and Ladders as esports or sports. It’s crucial to distinguish between esports, sports, and casual games.”

Echoing this sentiment, Rushindra Sinha, Founder and CEO of Global Esports, stated, “I firmly believe pay-to-play games like Rummy should not be considered gaming but gambling. While government regulations classify it as skill gaming, if these companies are banned from allowing monetary transaction, these companies will pivot to something else.”

When asked whether tournament organizers would consider Rummy as a sport or esport on par with games like BGMI or Valorant, Kuldeep Kumar, CEO of Villager Esports, responded, “I don’t think anyone would build their intellectual property around Rummy. Hosting outsourced Rummy events is different, but Rummy belongs to the real-money gaming category, unlike card video games such as Hearthstone.”

Similarly, Jai Shah, Co-founder of Orangutan, an esports organization, said, “While Rummy may be a game of skill, it falls under real-money gaming. Tournament organizers are free to host Rummy tournaments, but categorizing it as a sport or esport misleads people.”

It should be noted that the legal and regulatory framework of betting and gambling is quite vague and it differs from State-to-State. Even though games which require skill over chance are allowed in the country, the line which differentiates gaming from gambling is very thin. It will be interesting to witness the RMG sector shaping itself as a competitive sport in the country and will it be a successful venture.

Is Rummy a sport? SOGF fuels debate on skill vs chance in gaming

NODWIN Gaming announced the acquisition of Trinity Gaming, a gaming agency and platform MCN/ CSP in a deal valued at Rs 24 Crore. This acquisition will see Trinity Gaming become a fully owned subsidiary of NODWIN Gaming, marking a significant step in expanding its reach and capabilities within the Indian gaming and content ecosystem.

The acquisition of 100% of the share capital of Trinity will be a combination of secondary sale and stock swap of NODWIN Gaming shares for a total consideration of upto INR 24 Crores. The consideration would be payable partly by way of Cash consideration upto INR 4.8 Crores and balance INR 19.2 Crores by way of swap of equity shares of Nodwin Gaming. As part of this transaction, the founders would become shareholders of NODWIN Gaming and continue to lead the business going forward.

Founded in 2019 by entrepreneurial duo Abhishek Aggarwal and Shivam Rao, Trinity Gaming has quickly established itself as a cornerstone in India’s gaming influencer ecosystem. Trinity Gaming is a Creator Service Provider (CSP) for Meta and the only Gaming MCN (Multi-channel Network) for YouTube in Gaming in India, managing over 1,000 creators from across the country, with prominent partnerships with global brands such as Samsung, Realme, iQOO, and Krafton.
 
NODWIN Gaming will expand the portfolio of Trinity to other emerging markets such as Africa, SE Asia, Central Asia and Middle East across existing businesses and verticals of NODWIN Gaming. NODWIN Gaming will also merge its Unpaused Talent business with Trinity and have the founders of Trinity lead it
Akshat Rathee, Co-Founder of NODWIN Gaming, commented:  “Trinity Gaming has been a long-time partner and ally in the gaming ecosystem, and we’ve shared a strong relationship with Abhishek, Shivam, and their incredible team over the years. We are thrilled to welcome Trinity Gaming into the NODWIN Gaming family. Trinity’s deep understanding of India’s gaming creator ecosystem, coupled with their expertise in brand partnerships, agency activations, content creation, and community engagement, will be pivotal in further strengthening our footprint in the region. This acquisition allows us to offer more holistic solutions to our partners, from content creation to marketing services, while continuing to build a thriving gaming ecosystem in India.”

Abhishek Aggarwal, Co-Founder of Trinity Gaming, stated: “Joining forces with NODWIN Gaming is a momentous step for us. The synergy between our teams will accelerate our vision of creating unmatched opportunities for content creators in India, expanding the gaming ecosystem while helping brands connect more deeply with this highly engaged audience. We are excited about the future and the immense growth that lies ahead.”

Shivam Rao, Co-Founder of Trinity Gaming, added:  “With NODWIN Gaming’s unparalleled expertise in esports and global reach, coupled with our focus on creators and brand partnerships, we are poised to deliver innovative and compelling solutions for the gaming community in India. This acquisition marks the beginning of a new era of opportunities for creators, and brands alike.”

By bringing Trinity Gaming into their fold, NODWIN Gaming adds another critical touchpoint to engage with the youth demographic. 

The acquisition comes at a time when NODWIN Gaming continues to grow in India and emerging markets worldwide. This deal complements NODWIN Gaming’s recent strategic moves, including the acquisition of Comic Con in India, German esports and gaming marketing agency Freaks 4U Gaming, West Asia and Turkey-focused marketing agency Publishme, Singapore-based live events firm Branded, and Turkish esports and gaming company Ninja Global.

 

NODWIN expands portfolio; acquires Trinity Gaming at Rs 24 crores

The Tamil Nadu Online Gaming Authority (TNOGA) is set to implement its gaming regulations within the next month. TNOGA informed stakeholders of this decision during a recent consultation meeting held on November 12. However, stakeholders from the Real Money Gaming (RMG) industry are now demanding that video games also be regulated and receive the same treatment as them. 

Interestingly, neither the Game Developers Association of Tamil Nadu nor other stakeholders from the video gaming industry were invited by TNOGA at the last consultation meeting. Storyboard18 previously reported that TNOGA is preparing to regulate the RMG industry in the state, but the video gaming industry will remain unregulated in Tamil Nadu.

A source from the RMG industry who attended the consultation meeting said, “TNOGA officials and Cyber Cell police officials, were present at the meeting. However, government officials have not responded to our questions about whether they will share the draft policy before implementation.”

The source added, “TNOGA should closely collaborate with stakeholders before implementing the policy and create an environment conducive to growth in the country. Tamil Nadu is a major market for the RMG industry, and we already self-regulate by adopting comprehensive security and precautionary measures.”

In addition, multiple RMG operators are requesting similar treatment to that of the video gaming industry. Officials from PRAHAR, a policy and research think tank, met with TNOGA Chairperson Md. Nasimuddin Siddiqui on November 13 to propose collaborative awareness programs and workshops for stakeholders and law enforcement officials.

PRAHAR conducted an opinion poll among 5,200 online gamers in Tamil Nadu, revealing that the vast majority could not distinguish between legal and illegal games.

Abhay Raj Mishra, President and National Convenor of PRAHAR, stated, “The distinction between video games and real money games is highly questionable, especially when video games are given more lenient treatment. Video games, particularly those without monetary transactions, are predominantly targeted at children, contributing to early habit formation and gaming addiction.”

Mishra continued, “Allowing children to access appealing video games at a life stage when they lack cognitive maturity, while restricting adults' rights to freely choose to engage in real money games, reflects a flawed policy approach.”

According to a report by PRAHAR, India could face nearly 1 trillion cyberattacks annually by 2033, escalating to 17 trillion by 2047, with illegal online gaming platforms serving as a major conduit for these threats.

Snehil Dhall, a criminologist and founder of Crimophobia said, "The lack of regulation over in-game chats within online gaming and video games platforms has made them an ideal communication channel for terror groups and organized crime syndicates. These chats fall outside traditional monitoring frameworks, creating a safe and anonymous space for illicit coordination."

Dhall said, "Tamil Nadu has consistently been ahead of the curve when addressing issues related to organized crime, often taking proactive steps that are 10-15 years ahead of other states. This foresight is critical now as the digital ecosystem, particularly online gambling platforms, emerges as a new frontier for organized crime.”

Dr. Aruna Sharma, a policy advisor and development economist, said, "After completing consultations, Tamil Nadu is now moving toward regulating online games. This framework will allow both Real Money Gaming (RMG) and other online games to register under the regulatory body.”

Dr. Sharma talking about TNOGA's policy further noted that, “There has been no discussion about banning online RMG as part of this regulatory initiative. The proposed regulations are expected to include filters for age restrictions, and players will need to set limits on the amount of money spent and time played. This is a positive step. We need clearer and stronger regulations to prevent the growth of dubious platforms in the gray market.”

She added, “Moreover, console-based video games, typically played privately at home and not involving wagering, also raise concerns about addiction. However, they are not subject to regulation.”

The TNOGA, established last year, has recommended that online gaming be prohibited between midnight and 5 a.m., with a daily play limit of four hours and each session restricted to two hours.

Under the proposed rules, players may also face spending caps of ₹5,000 per day and ₹20,000 per month on gaming platforms. Aadhaar verification is expected to be mandatory for all registrations on these platforms.

Tamil Nadu’s online gaming rules to float next month

The Department for Promotion of Industry and Internal Trade (DPIIT) has entered into a strategic partnership with WinZO for a two-year Memorandum of Understanding (MoU) to accelerate the growth of India’s interactive entertainment sector by fostering innovation, creating skilled talent, and scaling startups to compete on a global stage

By aligning with Prime Minister Narendra Modi’s vision of an Atmanirbhar Bharat in gaming and technology, this initiative seeks to establish India as a global leader in interactive entertainment, capturing a significant share of the $300 billion global gaming market.

Central to this partnership is the establishment of a Center of Excellence (CoE) by WinZO, in collaboration with DPIIT. The CoE will serve as a launchpad for startups and entrepreneurs, focusing on critical aspects such as building a skilled, industry-ready workforce, innovating monetization strategies for Indian gaming assets, developing ‘Made in India’ intellectual property for global markets of world-class quality, attracting foreign direct investment (FDI) and driving manufacturing of interactive technology products in India. By addressing long-standing challenges such as monetization and talent gaps, the CoE will play a role in shaping the future of India’s gaming and interactive entertainment industry.

According to a recent USISPF report, India’s interactive entertainment sector is projected to grow to $60 billion by 2034, creating over 2 million jobs. The DPIIT-WinZO partnership is designed to harness this potential by nurturing startups through hackathons, workshops, accelerator programs, and curated pitch events.

Additionally, the MoU will expand WinZO’s flagship Tech Triumph Program (Bharat Edition), a platform for identifying and mentoring India’s top game developers. This program has already showcased India’s gaming talent at global forums such as the Game Developers Conference (GDC) and Gamescom LATAM, and will now scale its impact through DPIIT’s support.

Sanjiv Singh, Joint Secretary, DPIIT, added, “This partnership is a significant milestone in harnessing India’s potential as a producer and exporter. Through our collaboration with WinZO, we aim to foster innovation, promote entrepreneurship, and empower startups to manufacture products of global standards. This initiative aligns with our vision of making India a leader in interactive technology, contributing meaningfully to PM Modi’s vision of a self-reliant India.”

The MoU also focuses on bridging the talent gap in the sector by equipping professionals with cutting-edge skills in coding, animation, game design, and development. The CoE will provide startups with opportunities to access WinZO’s $50 million fund for interactive entertainment ventures, mentorship from industry leaders, and direct connections with investors.

Dr. Sumeet Kumar Jarangal, Director (Startup India), DPIIT, emphasized, “This initiative is a testament to our commitment to building a thriving ecosystem for entrepreneurs by collaborating with the Industry partners. By providing resources, mentorship, and global exposure, we are not just creating startups but building a pipeline of talent and innovation that will place India at the forefront of the global gaming industry.”

Saumya Singh Rathore, Co-Founder of WinZO, said, “We are honored to partner with DPIIT, which has been a cornerstone in empowering entrepreneurs like us to dream, build, and scale from India to the world. This MoU is a transformative step toward creating an ecosystem that not only fosters innovation for India but also positions Indian products and intellectual property on the global stage. By fueling foreign direct investment, nurturing world-class talent, and driving the creation of future-ready IP, we are building the foundation for a new era of interactive entertainment. Inspired by the Hon’ble Prime Minister’s call during the Startup Mahakumbh, we see this as our pledge to shape India into a global leader in gaming and technology innovation.”


DPIIT and WinZO launch Center of Excellence to nurture gaming startups

Have you ever come across an enticing ad featuring an easy-to-play puzzle or shooter game, or perhaps a scantily clad woman seeking help to escape a demon, while scrolling through Instagram Reels or YouTube Shorts? These types of advertisements are often designed for a quick download. Many mobile game developers are now using misleading ads on social media platforms to lure users into downloading their games. The Advertising Standards Council of India (ASCI) is open to investigating such cases but their primary focus remains on flagging illegal betting ads. 

Such misleading ads tempt users to click the download button, but the games can sometimes be malicious. They may request permissions to access personal data, including phone storage, or push users to unlock paid features.

Discussing this deceptive trend, Anurag Choudhary, Founder and CEO of Felicity Games, commented, "Misleading ads are often a shortcut to attract users by leveraging curiosity or exaggerated promises. Developers focused on short-term metrics, like high click-through rates (CTR), may use this tactic without considering long-term consequences. This approach erodes trust and damages brand credibility. At Felicity Games, we prioritize authentic and engaging creative strategies, ensuring alignment between game ads and actual gameplay to foster trust and sustain user retention."

Choudhary further emphasized that user retention is significantly lower for games acquired through misleading ads: "Users who feel deceived often uninstall the game quickly or stop engaging after minimal interaction. This reduces retention rates, increases churn, and negatively affects monetization potential." He added, "We focus on creating seamless onboarding experiences and authentic ad campaigns that accurately showcase gameplay, ensuring higher retention and long-term user loyalty."

As more brands invest in in-game advertising, research by Dentsu, Lumen, and Activision Blizzard Media shows that gaming environments deliver higher viewability and attention rates, along with better cost efficiency. For example, in-game rewarded video ads achieved a 100% on-screen impression rate, exceeding the benchmark of 83%, with an average of over 10,000 attentive seconds per thousand impressions.

Kashyap Reddy, Co-founder and CEO of Hitwicket, highlighted the challenges of acquiring users for mobile games. He explained, today, user acquisition is one of the biggest expenses for any mobile game, with almost 60% of revenue allocated to this purpose. To reduce customer acquisition costs, game developers often resort to misleading ads to persuade users to download games, even if the actual value proposition is lacking.

Reddy added, "I believe that the quality of the product is key to retaining users. Indian consumers are willing to spend on entertainment if it's high-quality. We've kept our game completely ad-free and prioritized user experience and in-app purchases. Over the last eight months, our in-app purchase revenue has grown threefold, and we’re on a strong growth trajectory.

"We have approximately 1.5 million monthly active users who play the game for an average of 42 minutes per day. Notably, 20% of our players are women, which is the highest percentage among sports games," Reddy noted.

Despite gaming’s 3.4 billion audience and significant cultural impact, in-game advertising investment remains slow. The global gaming market generates $183.9 billion annually, far surpassing the music and movie industries. According to research by Newzoo, 72% of individuals aged 35-54 and 46% of those aged 55 and older play video games at least once a week.

Another top gaming industry stakeholder said on condition of anonymity, "The game developers are using misleading tactics to make an user download a mobile game. ASCI should step in and flag such advertisements and social media intermediaries must be active to take down such misleading advertisements. These video game developers face heavy competition and they collaborate with third party agencies to increase their user base."

Taking a firm stance against misleading advertisements in the gaming industry, Manisha Kapoor, CEO and Secretary General of ASCI, stated, "We monitor misleading ads across all sectors, including mobile games. Misleading ads occur when there's a clear gap between what’s promised and the actual product or service. While no recent complaints have been filed specifically about mobile game ads misrepresenting gameplay, ASCI is open to investigating such cases when consumers bring them to our attention."

Kapoor added, "ASCI actively monitors advertisements across industries, including gaming. Our primary focus has been on areas like illegal betting ads, which pose significant financial risks. However, misrepresentation in mobile game ads has not yet been flagged."

<a href="https://www.storyboard18.com/gaming-news/exclusive-indias-gaming-industry-gets-clarity-rmg-sector-to-be-regulated-by-meity-47355.htm">Read more: EXCLUSIVE: India’s gaming industry gets clarity, RMG sector to be regulated by MeitY</a>

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