How does one differentiate between gambling from skill-based activities, such as online gaming or trading? While gambling results in a uniform distribution, with an equal probability of winning or losing, skill-based activities typically have a higher probability of winning, leading to a left-skewed distribution. In simple terms, the mathematical way to distinguish skill-based activities from gambling is that a skilled player is more likely to achieve a higher payoff than a gambler. The reason gambling is banned in many countries, including India, is due to its association with issues such as addiction, financial losses, fraud, and the loss of life and livelihood. By similar logic, online gaming and trading are allowed in many countries because they facilitate price discovery based on skills of market participants. Markets are created with opportunities to do business.

The good news for India is the increasing number of participants in the skill-based gaming market. This growth in market participants is largely driven by increasing smartphone penetration, affordable internet access, and a young demography with a preference to engage in online business activities. According to a report by PricewaterhouseCoopers, India has over 700 million internet users, with a significant portion of the young population actively participating in the online gaming market. The online gaming market is projected to surpass $8 billion by 2027. Another report by NITI Aayog suggested there are more than 100 million users played online game in 2023, up from a mere 2 million in 2016. India is now catching up, with a significant portion of gamers moving beyond the physical format of the game toward a format that reward preparation and strategy. A recent study highlights that India’s online gaming audience grew by over 20% in 2023, with a significant share engaging in strategy-based formats.

As online gaming become mainstream, the natural progression is toward real-time, decision-based models like sports trading, which combine elements of gaming and interactive market strategy. Moreover, the growth of the online gaming sector can support India’s goal of a US$1-trillion digital economy by driving foreign direct investment (FDI), increasing tax revenues, creating employment opportunities, and fostering the development of complementary industries such as fintech, Web 3.0, augmented reality (AR), and cybersecurity.

It is no wonder why the Indian gaming landscape is undergoing a major transformation, propelled by innovations that are redefining how players engage with skill-based formats. Take fantasy sports, for example, where users create imaginary teams composed of real-life players for an upcoming match. The skill element comes into play as users leverage real-time analytics, market dynamics, and strategic decision-making to craft immersive and intellectually stimulating experiences.

There is more to the skill element part. Fantasy sports is taking this analytical approach further by introducing dynamic, event-based markets where participants can take positions based on real-time insights. This evolution mirrors global trends where financial markets and gaming intersect, offering an experience that is both strategic and engaging. Sports trading thrives on real-time decision-making and continuous engagement. Users analyse team compositions, historical performance, player form, and match conditions to make calculated moves. This dynamic peer-to-peer format ensures participants remain actively involved throughout an event, adjusting strategies as live developments unfold.

Traditional fantasy formats require users to lock in their teams before a game begins. Sports trading allows users to react to unfolding events, making it a more engaging and strategy-intensive experience. This activity is similar to the bidding format that one observes in Indian Premier League. For bidding participants rely on publicly available statistics, historical trends, and live analytics to shape their strategies. The trading operates on a demand-supply model, where each position is counterbalanced by another participant. This adds a financial literacy component while introducing an interactive, real-world trading experience. Reports suggest that active users on sports trading platforms show a 15-20% improvement in decision-making over time, highlighting its role in fostering strategic thinking.

Globally, gaming formats that integrate real-time insights and skill-based engagement have flourished. The evolution of gaming in India is about more than just entertainment. It is about building an ecosystem where skill, strategy, and real-time intelligence converge. As sports trading gains traction, it is paving the way for a new generation of players who are analytical, engaged, and invested beyond passive participation.

Moving forward, online gaming such as fantasy sports with enhanced analytics, intuitive interfaces, and real-time engagement tools will further elevate gaming experience and create opportunities to do business. As players recognise the strategic depth of sports trading, its adoption is expected to mirror the success seen in fantasy gaming over the last decade. These innovations are not only enhancing user experiences but also positioning gaming as a dynamic, evolving industry that values intelligence, adaptability, and skill. As adoption continues to rise, India’s gaming landscape is set to reach new heights, solidifying its place in the global digital economy.

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Views expressed above are the author's own.

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