New technologies and high-speed Internet connections have helped the online gaming to become a favorite pastime on the Internet. While gamers invest large amounts of time and money for enjoyment, others see an opportunity for mischief or illicit profit.

Online Gaming is defined as "Gaming that requires the use of a Personal Computer (PC) and Internet connectivity, either played online or downloaded and played online later, capable of supporting either a single player or multiple players, where the player(s) is in India". Online gaming does not include games that are downloaded and stored on PC and hard drives, and does not fall into the category of mobile and console gaming, played offline. The revenue which is generated from online gaming comprises various sources, like Advertising, Subscriptions, Organized Cyber Cafés, etc.

To understand correctly the growth path of online gaming, it is imperative to know the Internet environment in India. Some of the key aspects that need to be understood are affluence level of users, altering the infrastructure and trends in order to adapt to other applications. A correct understanding of these aspects will generate a clear picture of the framework in which online gaming operates in India. There is a tremendous growth in the user base in India, having grown 100% in 2006 over 2004. The overall penetration is still very low (<5%). The increase in the usage of Internet will certainly fuel the rapid growth of the online gaming in the next three to four years.

The cyber café is the growth point of online gaming: it serves the dual function of being the first point of access to the world of games and also a hang-out zone for people. Currently, the target for organized cyber café chains in India to promote online gaming, which is bought by a push from content providers who are keen in generating interest of consumers and forcing the cafés to upgrade in order to meet the consumer demands. Gaming portals have also taken the initiative of developing the market by providing marketing support to the unorganized cyber cafés to become gaming zones. In developed countries, the organized cyber café chains enter the market with better infrastructure and state-of-the-art technology and facilities, that cast a spell on people and get them hooked to online gaming. India is catching up with countries like South Korea in the online gaming market.

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