Ban on real-money gaming could dent payment aggregators’ revenue by 10%
Real-money gaming platforms and online merchants typically work with multiple payment aggregators to route transactions, ensuring speed and efficiency.
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Online payment platforms could face a significant jolt if the Centre goes ahead with its proposed ban on real-money gaming (RMG) in India. According to a Moneycontrol report, the gaming industry accounts for nearly 10% of the topline of several payment aggregators (PAs) such as Razorpay, Cashfree, and PayU, all of which have sizeable exposure to RMG firms.
Real-money gaming platforms and online merchants typically work with multiple payment aggregators to route transactions, ensuring speed and efficiency. Industry sources estimate that gaming contributes nearly 10% of annual revenues for these companies.
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The RMG industry processes around 400 million monthly transactions via UPI, which spiked to 500 million in April this year, buoyed by the Indian Premier League and other domestic cricket tournaments, as per NPCI data.
Financially, the sector’s dependence on UPI is overwhelming: over 90% of RMG wallet transactions — worth nearly Rs 10,000 crore — are routed through UPI, adding up to an annual turnover of about Rs 1.2 lakh crore.
While UPI handles a staggering 19 billion transactions worth Rs 24 lakh crore every month, RMG accounts for only about 0.5% in value terms. This suggests that a ban would have limited macro impact, though payment companies could still see a sharp dip in transaction volumes.
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One payment aggregator told Moneycontrol that the move may bring much-needed clarity, enabling only legitimate players to access services. However, others warned that the ban could backfire, driving Indian users to international betting platforms, where deposits can easily be made using credit cards.
