Top Monetization Models for Indian eSports Apps: Revenue Insights for Decision Makers

Quick Summary

• Esports monetization should balance market risks, affordability and entry barriers for a price-sensitive Indian market, and touch all points of fan interaction to deliver desired returns. 

• Hybrid monetization or a mix of monetization models combining ads, sponsorships, ticket sales, and merchandising is the way forward for esports businesses to thrive in this competitive market. 

• Hybrid monetization answers all traditional app monetization limitations and offers Indian consumers unmatched flexibility to engage with their favorite sports.

Introduction

Esports app monetization refers to the process of making revenue from the competitive gaming ecosystem. However, esports monetization is different from traditional gaming, considering its intricate and extensive ecosystem of event organizers, game developers, and teams creating value for viewers, players, and investors. With its rapid growth and constantly evolving ecosystem, Indian esports app monetization needs to be diverse to guarantee businesses sustained growth and profits immune from market shifts, regulatory updates, changes in consumer preferences, and growing competition threats.  

This blog helps esports innovators, business strategists, and other key decision-makers understand the various monetization models to implement in their apps to offer sports fans a comprehensive ecosystem tailored to their preferences. 

Understanding the Esports Market India: An Overview

According to a Statista report, the esports industry in India is expected to generate a revenue of $139.3 mn by 2025, which is expected to grow at a CAGR of 5.78% to reach a market volume of $174.4 mn by 2029. In addition to this steady growth, the Promotion and Regulation of Online Gaming Act (August 2025), which banned real-money fantasy games, recognizes esports as a legal and socially competitive gaming format, further fueling the esports industry growth in the rapidly evolving Indian gaming era.  

As such, with regulatory approval, proven growth potential, and most Indian gaming businesses striving for survival, esports is positioned to carry forward the legacy of fantasy games without real money, cater to the vast market of passionate gamers in India, and shape the global dominance of India’s gaming industry.  

Other key factors that contribute to esports success in India and play a decisive role in esports app monetization include: 

• World’s largest youth population: According to the Government of India’s Press Release Bureau, India has the world’s largest youth population, with over 65% of its population below the age of 35. This population is tech-savvy, owns the major spending potential, constitutes the primary user base for smartphones, and engages in digital entertainment like no other. 

• Established digital infrastructure: According to a report by Business Standard, India had approximately 1.2 billion smartphone users as of early 2025. This is a result of accessible internet infrastructure and affordable mobile data that enables users to access online services. 

• Growing career opportunities: India’s youth values esports beyond entertainment, which offers a unique blend of tradition and opportunity to power the nation’s global dominance with steady employment opportunities.  

• Investor approvals: With the Promotion and Regulation of Online Gaming Act recognizing esports as a competitive and social gaming format, the esports industry’s status is free from all ambiguity and stands de-risked for investors who believed in the popularity of games but worried about the regulatory impact in an unstructured market.  

• Expanding ecosystem: The esports industry offers brands unprecedented visibility with opportunities for fruitful cross-promotions and fan engagement.

Key Challenges for App Monetization India

India’s passion for gaming is known worldwide. The real challenge is to offer sports fans an engaging experience and enough value in alignment with regulatory frameworks that they want to spend more on your app. As such, monetizing esports apps requires businesses to intricately balance user needs with revenue goals without compromising their gaming experience. Discussed below are the top monetization challenges that gaming businesses and app developers should prepare for: 

1) Price Sensitivity

Indian gaming consumers are known to be price sensitive. This is evidently visible in the free-to-play model being the most dominant one for gaming businesses, who use it as a mechanism to lower their entry barrier among first-time gamers. Additionally, advertising accounts for a greater part of the revenue for Indian gaming apps as compared to in-app purchases with businesses standing the risk of plummeting engagement rates with as much as a 30% hike in participation fees.  

2) Freemium Expectation

To maximize on the ROI in gaming, Indian gaming apps need to offer value-based pricing in return for premium features that seem indispensable. The main complexity game developers face in this context is that most online gamers expect freemium models with a good gaming experience. The transition to a premium layer should be compelling and offer a value-driven promise worthy of an investment. 

3) Low ARPU Conversion

According to standard industry reports, India’s gaming industry records an Average Revenue Per User (ARPU) of $3, whereas established gaming markets like those in the US record an ARPU of $200 or more. This stark difference leaves a lot of room for implementing diverse monetization strategies and microtransactions that seamlessly blend into user behavior and blur the lines between play, payment, and technology.  

4) CAC vs LTV

Nearly all businesses agree that the cost to acquire a customer is higher than the cost of retaining one. Applied to the gaming industry, this complexity multiplies with increasing competition to reach over 517 million online gamers in 2025, according to a report by Demand Sage. As such, gaming businesses only have technology to use as a differentiator and offer delightful gaming experiences that invite new users, retain existing ones, and create viable business value while doing so.  

Proven Esports Monetization Models for Revenue Diversification

Discussed below are the diverse ways of monetizing esports apps in India according to established regulations, user demand, and ecosystem expansion: 

1) In-Game Purchases

Ever noticed games like COD Mobile and BGMI? A very small percentage of their user base spends money on the game, but their model makes them do it at a high frequency. Battle passes, microtransactions, skins, time skips, and boosters play a significant role in establishing unique identities and exclusivity, and are recurring by nature, seamlessly blending into user behavior and context.  

This is a popular monetization model for esports apps because it: 

• Caters to sports fans’ demands for exclusive content around their favourite games. 

• Leverages the accessibility of mobile technology to give users the opportunity to engage with their preferred game anytime, anywhere, enhancing the possibility and requirements for in-app purchases. 

• Aligns with the cautious spending habit of Indian consumers by giving them the choice of microtransactions instead of high subscription fees. 

• Extends the personalisation of Esports (via custom avatars and skins) with cultural relevance for the Indian user who sees Esports at the intersection of culture, identity, and opportunity. 

• Offers a recurring monetization opportunity for esports providers, offering their users unmatched flexibility, choice, and opportunity to engage with seasonal drops and battle passes. 

• Enables esports businesses to expand their offerings to users who want free-to-play games as well as those who want to engage more with in-game purchases.

Real World Use Case

Apps like Fortnite and Mobile Legends Bang Bang have effectively used in-game purchases as a monetization model to not only diversify their revenue, but also expand their user base, and maintain a stable revenue stream, along with a fair gaming environment for all users, and enhanced scope for users’ consistent engagement and retention  

2) Brand Partnerships and Sponsorships

Gaming was once a downstream of pop culture. Today, it has largely evolved into a visibility powerhouse for all brands with a well-established ecosystem at the intersection of technology, people, community, and culture. As such, brand partnerships and sponsorships find a natural destination with esports apps as they continue to attract millions of young and tech-savvy users to their platforms. 

Brand sponsorships form one of the most promising monetization strategies for esports apps because:  

• They offer non-interruptive user engagement, where users can win a match and unlock credits for real-world discounts. This connects them to their favorite brands without compromising on their gaming experience.  

• They enable access to a high-converting and full-funnel ecosystem of fans who gather to engage in their favorite games. Traditional and non-specific ads would appeal less to them than visibility of products and brands that align with their gaming habits.  

• Esports have evolved from isolated grassroots tournaments to full-fledged global championships. As such, brand partnerships offer visibility that scales with the extensive ecosystem across multiple touchpoints as per user preferences. 

• They play a pivotal role in shaping an esports app’s fan engagement quotient by offering co-created merchandise and content that creates better emotional resonance. 

• Along with fueling community growth and user loyalty, they offer a reliable and long-term revenue opportunity comparatively immune from risks of volatile measures.

Real World Use Case

India’s “Bowl of Esports”, Battlegrounds Mobile India Masters Series (BGMS), has returned with its fourth season in partnership with Jio Hotstar, and title sponsors as One Plus and Android as Co-Title Partner. Other popular consumer brands such as Swiggy, Duolingo, Bisleri and Red Bull have also been roped in as sponsors. Beyond publicity, these brands get established among the Indian youth, upholding values they cherish, in an environment that resonates culturally with them.  

3) Digital Content Streaming

Digital content and on-demand streaming services have transformed how esports providers engage with sports fans. Streaming platforms like Twitch and YouTube help Esports brands diversify their revenue with subscriptions and ad revenue, while reaching a wider user base at scale.  

Discussed below are reasons why digital content streaming works as a viable revenue diversification strategy for esports apps:  

• Platforms like YouTube Gaming have massive penetration among the Indian youth and offer natural entertainment quotients as profitable esports discovery channels. 

• In a price-sensitive market like India, streaming services enable esports businesses to offer free-to-play formats and implement ad monetization that naturally sits well with users of streaming services. 

• Streaming channels play a key role in amplifying fan loyalty through community polls, live chats, and interactive streams. 

• Streaming channels stabilize esports revenue by diversifying it with brand collaborations and memberships revenue.

Real World Use Case

Tyler “Ninja” Belvins made headlines in 2023 by earning approximately $10 million through his YouTube and Twitch channels. 

4) Merchandising

Merchandising has emerged as one of the top esports revenue models with direct fan engagement opportunities beyond the match day. It enables esports businesses to sell branded merchandise according to users’ favorite sports teams, enter brand collaborations with lifestyle, fitness, and sports companies, and earn through licensing agreements.  

Merchandising is a promising esports monetization as well as revenue diversification strategy because: 

• It offers a direct way to engage with fans and earn revenue by selling fan favorites like branded jerseys and collectibles. 

• It fuels and caters to passionate fan loyalty to their favorite teams and players, enabling them to share their identities with jerseys, caps, and other fan collectibles. 

• In India’s price-sensitive market, merchandising is neither intrusive nor does it create an entry barrier for cost-conscious fans. As opposed to expensive premium subscriptions, merchandising enables businesses to price fan favorite goods flexibly and engage them directly. 

• Merchandising offers unprecedented visibility enhancement with its offline and online reach. Esports events and local tournaments can be the perfect destination for offline sales to fan communities, whereas e-commerce module implementation can help esports businesses reach audiences worldwide. 

• Branded merchandise goes beyond a desire for fashion. It seamlessly blends into the culture the Indian youth cherishes deeply, sharing aspirations and victory journeys of their favorite athletes. This makes merchandising a tool for stronger community building and user retention.

5) Ticket Sales

Ticket sales is a direct way to guarantee user retention in esports by balancing affordability, engagement, community-building, and fan exclusivity. Indian esports fans are drawn towards live game events, stadiums, and gaming arenas, and ticket sales are a medium to give them the joy of traditional gaming in a brand-new format.  

Additionally, ticket sales give sports fans a strong sense of community, engagement, and relevance via tiered pricing models to accommodate fans with different spending preferences. While general entry tickets cater to mass engagement, premium passes, paid virtual tickets for live-streamed events and behind-the-scenes content access attract hardcore fans willing to spend more on deeper fan engagement. Combined to match tickets, esports businesses can also unlock ancillary revenue with merchandise, food, and beverage partnerships. 

Discussed below are reasons why ticket sales is a stable esports monetization strategy: 

• They tap into the cultural willingness of Indian sports fans to spend on entertainment as they have for live matches, local tournaments, and gaming arenas. 

• Ticket sales offer recurring and predictable revenue cycles with round-the-year tournaments, city-based leagues, and annual championships.  

• With users open to digital payments and UPI dominating as the preferred payment mode, ticket sales offer a frictionless payment method with an extensive reach to billions of sports fans. 

• As a revenue diversification strategy for esports apps, ticket sales offer a promising medium with brand partnerships in creating an immersive ecosystem for sports fans.

Real World Use Case

Tournaments like the League of Legends World Championship host thousands of sports fans in venues like Sang-am World Cup Stadium in Seoul, making ticket sales a primary revenue booster. 

6) Advertising

Advertising constitutes a core business model for esports apps where they earn revenue through targeted and personalised ads during esports events and live streams. 

Advertising is a beneficial esports monetization model because:  

• It offers brands direct access to India’s primary consumer group in the 16-35 age group. This age group is tech-savvy and their digital native habits naturally fuel the growth of emerging brands. 

• Esports operators can benefit from the high conversion of ads delivered to passionate sports fans during high engagement matches and live streams. 

• Interactive ads and other multiple ad formats like banner ads, branded content, and mod-roll ads enhance the ROI and offer flexible monetization options. 

• Ads eliminate the entry barrier for Indian users, most of whom do not pay for games. 

• Ads offer a source of recurring revenue with expanding esports viewership across mobile, PC, and streaming platforms.

How Sciflare Can Help You Implement Mobile Esports Monetization Profitably

As evident from understanding the extensive esports ecosystem in this blog, implementing hybrid and diversified monetization models for esports is the only way to maximize revenue and boost customer LTV. This is because Esports does not exist in isolation, much like users’ engagement with esports, which happens against the backdrop of their social, cultural, and economic circumstances. Additionally, hybrid monetization models minimize regulatory risks and ensure smooth business operations consistently.  

With fan engagement being a core component, survival strategy, and differentiator for Esports, hybrid esports monetization models help gaming businesses offer immersive gaming ecosystems that appeal to sports fans beyond basic functionality and resonate with their emotional and cultural habits. Discussed below are the ways in which Sciflare can help you win in the Esports market with regulation-approved Esports monetization models: 

1) UPI Ready Scalable Systems

Having scaled Dream 11 from 0-5.5 million+ users, Sciflare specializes in gaming tech and scalable infrastructures that help gaming enterprises cater to peak demand. Our UPI-ready scalable infrastructure and payment systems help you reach India’s extensive user base and offer them frictionless transactions spanning in-game purchases, ticket sales, subscriptions, and more. Additionally, we can help you integrate analytics-driven modules to enhance fan engagement and convert every fan interaction with your app into a revenue-generating opportunity. This will enable you to personalise offers, track ads performance, and manage traffic spikes during peak loads effectively by combining sports innovation, payment gateway integration, and scalable infrastructure.  

2) Custom Gamified Strategies

Gamified elements like leaderboards, daily challenges, streaks, and virtual rewards can help you diversify your monetization strategy and draw users towards premium subscriptions and in-game purchases more naturally. Without interrupting their gameplay experience, gamification can appeal to their intrinsic motivations and transform passive spectators into active participants through interactive quizzes, polls, and contests. This can increase their time spent on the app, convert fan engagement into a revenue tool, and boost fan loyalty amidst increasing competition. Additionally, you can track gamification analytics to identify which monetization strategy works best for you from the hybrid mix and optimize your investment on the same. 

3) Cultural Resonance

We can help you build esports gaming ecosystems that resonate with India’s diverse culture and appeal to users of each region accordingly. From region-specific design to multi-language support, and hyper-local relevance, we have got you covered to build India’s next favorite Esports app- built in India, for India. The outcome of an esports app with high cultural resonance goes beyond profit, it blends into the fabric of our nation’s love for sports and aligns with the Government’s attempts to empower the Indian gaming ecosystem in all parts of the country. 

4) AI-driven Personalization

This is the era of hyper-personalization, where every user expects a version of an app most relevant for them (think Spotify or Instagram). The machine learning algorithms at work in these apps enable unprecedented relevance and personalization. We can help you replicate their success in Esports apps by deploying advanced ML algorithms that track and analyse users’ gameplay patterns closely, encourage users towards their preferred purchases after identifying the right time for conversion, and improve the efficacy of apps, and improve the ROI of streaming services with curated highlights to engage users beyond match days.  

Conclusion

Esports app monetization goes beyond just making them profitable through maximum transactions. It entails creating an ecosystem that echoes the passion for games and is rooted in India’s culture. As such, it is not possible to offer something with such widespread roots through a singular medium and channel. It requires esports businesses to focus on the various fan interaction points that make up the esports ecosystem and use fan engagement as a tool via hybrid monetization to not just succeed in esports, but grow, scale, and thrive with the industry’s exponential growth.  

Get in touch with us to implement tailored hybrid esports monetization strategies and convert passive sports spectators into loyal fans for life! 

FAQs

1) How to monetize esports apps?

Monetizing esports apps requires businesses to balance affordability, entry barriers, market risks, and fan engagement while leveraging every interaction touchpoint of fan engagement. As such, esports monetization should be hybrid to cater to these factors and enable businesses to leverage the widespread esports ecosystem to make the desired ROI and impacts.  

2) Are esports legal in India?

Yes, the Promotion and Regulation of Online Gaming Act recognizes esports and de-risks the category for businesses, investors, game developers, and sports fans.