Why Indian Game Studios Are Shifting Away from Real-Money Models?

Introduction

For years, real-money gaming (RMG) models—such as fantasy sports, card games, and betting-style mechanics—dominated headlines in India’s gaming space. While these models brought quick revenue, many Indian game studios are now reconsidering and moving away from real-money formats.

In 2025 and beyond, a noticeable shift is happening toward skill-based, ad-supported, subscription, and cosmetic monetization models. This change isn’t accidental—it’s driven by regulation, player trust, long-term sustainability, and global ambition.

Let’s explore why Indian game studios are pivoting away from real-money models and what this means for the future of gaming in India.

Regulatory Uncertainty and Compliance Risks

One of the biggest reasons for the shift is regulatory instability.

• State-wise laws differ across India
• Frequent policy changes create uncertainty
• Compliance costs are rising
• Legal challenges can halt operations overnight

Studios prefer predictable business models that allow steady growth without constant legal risk.

Player Trust and Brand Reputation

Real-money models often face trust issues among players.

• Fear of financial loss
• Suspicion of unfair outcomes
• Perception of gambling addiction
• Negative social stigma

Studios aiming to build long-term brands are prioritizing player trust and positive experiences over short-term revenue.

High User Acquisition Costs

RMG platforms typically face:

• Expensive marketing campaigns
• Heavy incentive-based onboarding
• High churn after bonuses end

This makes growth costly and unsustainable. Non-RMG games, on the other hand, often achieve organic growth through gameplay quality and community engagement.

Limited Global Scalability

Real-money gaming models are:

• Restricted in many countries
• Difficult to localize globally
• Often incompatible with app store policies

Indian studios with global ambitions prefer models that can scale internationally without regulatory friction.

Broader Audience Appeal

RMG games target a narrow user base.

By shifting away, studios can reach:

• Younger players
• Casual gamers
• Families and social groups
• International audiences

This expands reach and improves long-term engagement.

Sustainable Monetization Alternatives Are Stronger

Modern alternatives offer reliable revenue without legal risk:

• Battle passes
• Cosmetic purchases
• Ads and rewarded videos
• Subscriptions
• Skill-based progression systems

These models align better with player expectations and global best practices.

AI and Data Enable Smarter Monetization

With AI-driven personalization, studios can:

• Optimize ad placements
• Personalize offers ethically
• Increase lifetime value
• Reduce churn

This reduces dependence on high-risk real-money transactions.

Focus on Creativity and Game Quality

Moving away from RMG allows studios to:

• Invest more in gameplay and design
• Build stronger IPs
• Experiment with genres
• Develop long-term franchises

Creativity thrives when studios aren’t locked into monetization-first design.

What This Shift Means for the Future

India’s gaming industry is evolving toward:

• Skill-based entertainment
• Ethical monetization
• Global scalability
• Player-first experiences

Studios that adapt early will lead the next growth phase of Indian gaming.

Conclusion

Indian game studios are shifting away from real-money models because the long-term risks outweigh the short-term gains. Regulatory uncertainty, trust challenges, and scalability limitations have pushed studios to embrace sustainable, player-friendly monetization strategies.

This shift marks a maturing industry—one focused on creativity, global reach, and lasting value rather than quick wins.

The future of Indian gaming lies in fun-first design, ethical monetization, and experiences players can trust.