Data Privacy Risks for Gaming, Fantasy Sports and Online Platforms under India’s DPDP Regime: Behavioural Profiling, Consent and Compliance
By Aniket Ghosh
Introduction: Why Gaming Platforms Sit at the Centre of Privacy Enforcement
India’s gaming and interactive entertainment ecosystem comprising online gaming platforms, fantasy sports operators, real-money gaming companies, casual mobile games, esports platforms and gamified social apps has experienced explosive growth. These platforms are no longer passive entertainment providers; they are data-intensive behavioural engines involving major data privacy risks.
Every tap, swipe, pause and in-game decision is captured, analysed and monetised. As a result, gaming platforms process some of the most granular behavioural datasets in the digital economy, often involving:
Children and young adults
Continuous tracking and profiling
Psychological engagement mechanisms
Cross-platform advertising and monetisation
With the enactment of the Digital Personal Data Protection Act, 2023 (“DPDP Act”) and the Digital Personal Data Protection Rules, 2025 (“DPDP Rules”), gaming companies now face heightened legal scrutiny, particularly around consent, profiling, children’s data, dark patterns and targeted advertising.
Applicability of the DPDP Act to Gaming and Interactive Platforms
Platforms Covered
The DPDP Act applies to all entities processing digital personal data, including:
Online and mobile gaming platforms
Fantasy sports and skill-based gaming operators
Esports platforms
Casual and hyper-casual game developers
Social gaming and metaverse platforms
Real-money gaming and betting intermediaries
Both Indian and offshore platforms offering services to users in India fall within scope.
Gaming Companies as Data Fiduciaries
Gaming platforms almost invariably qualify as data fiduciaries, as they determine:
What user data is collected
How gameplay data is analysed
How engagement and monetisation strategies are deployed
Third parties such as analytics providers, ad-tech platforms, payment processors and cloud service providers operate as data processors, though primary liability remains with the platform. Large gaming platforms may be designated as Significant Data Fiduciaries (SDFs) due to:
Scale of user base
Volume of behavioural data
Involvement of children
Use of AI-driven engagement tools
Behavioural Data in Gaming: A High-Risk Category
What Is Behavioural Data?
Gaming platforms routinely collect:
Gameplay patterns
Reaction times
Spending behaviour
In-game communications
Social interactions
Device and location metadata
When combined, this data enables deep behavioural profiling, capable of predicting user preferences, vulnerabilities and spending propensity.
Why Regulators Are Concerned
Behavioural profiling in gaming raises concerns around:
Manipulative engagement design
Addiction and compulsive behaviour
Exploitation of cognitive biases
Psychological harm, particularly to minors
Under the DPDP Act, such data processing must be lawful, proportionate and purpose-bound – a standard many legacy gaming models struggle to meet.
Consent in Gaming: Validity Under the DPDP Act
Consent Must Be Real, Not Illusory
Gaming platforms often rely on click-wrap agreements, bundled consents, and long, technical privacy policies. Under the DPDP Act, consent must be:
Free
Informed
Specific
Unambiguous
Capable of withdrawal
“Accept to play” models that condition access on broad data permissions risk being treated as coerced consent.
DPDP Rules: Notice and Transparency Obligations
The DPDP Rules require platforms to disclose:
Categories of personal data collected
Purpose of processing (including analytics and advertising)
Third-party data sharing
User rights and withdrawal mechanisms
Grievance redressal channels
Generic disclosures that do not explain behavioural analytics and profiling are unlikely to withstand scrutiny.
Dark Patterns and Manipulative Design in Gaming
What Are Dark Patterns?
Dark patterns are interface designs that manipulate user behaviour, including:
Infinite scroll and loot box mechanics
Misleading reward structures
Obscured opt-outs
Artificial urgency
While not explicitly defined in the DPDP Act, such practices undermine free and informed consent.
Regulatory Trajectory
Gaming platforms are increasingly scrutinised by consumer protection authorities, sectoral regulators, and Courts. Under the DPDP framework, dark patterns may invalidate consent and expose platforms to enforcement action for unlawful data processing.
Children’s Data: A Legal Minefield for Gaming Platforms
Children Under the DPDP Act
Any user below 18 years is a child under the DPDP Act. This is particularly consequential for gaming platforms with:
Casual or cartoon-style games
School-age user bases
Freemium models
Parental Consent and Verification
Processing children’s data requires:
Verifiable parental consent
Mechanisms to confirm guardian identity
Clear linkage between parent and child
Self-declared age gates are insufficient.
Prohibition on Tracking and Targeted Advertising
The DPDP Act restricts behavioural tracking, profiling and targeted advertising directed at children. This directly impacts:
Ad-supported gaming models
In-game personalised offers
Behaviour-based monetisation strategies
Real-Money Gaming, Payments and Financial Data
Financial and Transactional Data
Real-money gaming platforms process:
Payment information
Wallet balances
Spending patterns
This data carries elevated risk due to Fraud potential, addiction concerns, and regulatory overlap with financial laws. Such data must be processed with heightened security and minimal retention.
KYC and Identity Data
Where KYC is required, platforms must:
Limit collection to necessity
Clearly disclose purpose
Secure data against unauthorised access
Repurposing KYC data for marketing or profiling is legally hazardous.
Third-Party Sharing and Ad-Tech Risk
Gaming platforms frequently integrate with advertising networks, attribution providers, and analytics engines. The DPDP Act places responsibility on the gaming platform to ensure:
Processor compliance
Contractual safeguards
Breach notification obligations
Uncontrolled SDKs and plug-ins are a common source of data leakage.
Data Breaches and Incident Response
Mandatory Reporting Obligations
Under the DPDP Act and Rules, gaming platforms must notify the Data Protection Board of India and affected users. This obligation applies even to non-financial harm.
Reputational Fallout
Data breaches involving children, behavioural data, and payment information are likely to attract disproportionate public and regulatory backlash.
Penalties and Enforcement Exposure
Monetary Penalties
The DPDP Act empowers the Data Protection Board to impose penalties up to INR 250 crore per contravention, considering:
Nature of data involved
Scale of processing
Harm caused
Mitigation steps taken
Gaming platforms processing children’s or behavioural data face elevated penalty risk.\
Business Impact
Beyond penalties, platforms may face:
Platform bans or restrictions
Loss of advertising partners
App store scrutiny
Investor concerns
For gaming businesses, regulatory action can directly threaten viability.
Compliance Roadmap for Gaming Platforms
Data Mapping and Risk Assessment: Identify behavioural, financial and children’s data flows.
Consent and UX Redesign: Simplify consent journeys and eliminate dark patterns.
Children’s Data Controls: Implement robust age-gating and parental consent systems.
Vendor and SDK Audits: Review third-party integrations and contracts.
Governance and Training: Educate product, design and marketing teams on privacy risks.
Conclusion: Sustainable Gaming Requires Responsible Data Practices
The DPDP Act and Rules signal a clear regulatory message: behavioural exploitation is not a sustainable business model. Gaming platforms must rebalance innovation with responsibility, particularly where vulnerable users are involved.
Platforms that proactively redesign consent, limit profiling and embed privacy-by-design will be best positioned to thrive in India’s evolving digital ecosystem.
King, Stubb & Kasiva - February 2 2026