Australian digital gaming has seen steady growth in recent years. As of 2020, at the height of the COVID-19 pandemic, it was worth $240 billion globally and is expected to reach $294 billion by 2024. In Australia, the digital gaming industry earned $226.5 million in revenue, an increase of 22 percent from 2020, with the remaining 83 percent coming from overseas markets.

Digital gaming is expected to become a modern, digital, and creative Australia pillar. The industry relies on every type of media, such as sound, animation, music, and cinematography. Furthermore, digital game production utilizes and contributes a wide range of complex talent and transferable skills to the economy.

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Why Is Digital Gaming Growing in Australia?

Given the figures above, one might wonder why digital gaming is such a big thing in Australia. This is because Australians love playing games. It allows them to connect with themselves and become entertained, especially during the pandemic. According to new data, 75 percent of Australians play games.

Digital gaming picked up the pace during the COVID-19 pandemic. As people were locked down due to social distancing and health protocols, Australians sought ways to beat boredom and forms of entertainment. Gaming emerged as a fun alternative to outdoor amusement, expected to continue in the future and beyond.

Aside from their love for gaming, other developments contributed to the growth of digital gaming in Australia. All these trends did their share in making Australian digital gaming a dynamic sector.

1. Tax Incentives

The introduction of tax incentives has led to the influx of local and foreign digital game developers in the country. With the passing of the Digital Games Tax Offset (DGTO), digital gaming operators can avail of Federal and state-based tax incentives. Once the DGTO takes effect, these establishments can claim 30 percent of eligible expenditures.

As a result, we now see an influx of foreign game developers like EA Firemonkeys, Gameloft Brisbane, and Sledgehammer Games, to name just a few.

2. Mobile Gaming

Deeper smartphone penetration paved the way for the rise of mobile games in Australia. Thanks to mobile gaming, people learning how to play keno can do so using smartphones. According to Statista, the number of mobile gamers in Australia is expected to hit 9.2 million by 2027.

3. E-Sports

The pandemic introduced Australians to another huge contributor to the growth of digital gaming in the country– esports. Revenue from esports is expected to grow at a CAGR of 8.59%, reaching $24.19 million by 2027. Global brands like FIFA, NBA, MotoGP, and NASCAR hold regular esports events.

4. Console Gaming

Considered the cornerstone of the video game market in Australia, console gaming registered healthy numbers in 2020. After experiencing a decrease in revenue from the launch of the Nintendo Switch in 2017. The industry picked up in 2020 with Sony and Microsoft launching hardware upgrades– Playstation 5 and Xbox One X.


Digital gaming in Australia continues to grow, and there seems to be no sign of stopping. As Australians continue to look for some form of entertainment, they will look to this sector to give them that enjoyment.