~ AIGF applauds the government’s decision and hails it as a breakthrough move for India’s flourishing online gaming industry ~
~ In the context of the proposed amendments to the IT Rules for online gaming, The Quantum Hub (TQH) organized a discussion along with the All India Gaming Federation (AIGF) today ~
The Ministry of Electronics and Information Technology (MeitY) recently published a draft rules pertaining to online gaming for public consultation. One of its key proposals, is a self-regulatory framework that, in the future, might also govern the content of online gaming. The self-regulatory organization (SRO) would be responsible for registering and approving games, as well as providing a grievance redressal mechanism.
All India Gaming Federation supports the draft rules released by Government for the online gaming sector
Supporting this decision, Mr. Roland Landers, CEO, All India Gaming Federation, said, “The draft rules present a balanced and efficient approach for the regulation of online gaming and keeps in mind both the interests of innovation and consumer protection needs. We welcome the opportunity to interact with different audiences and believe that it is crucial to educate and inform all stakeholders and consumers on how the rules will be relevant to them. Developing capacity at this early stage would mean that as and when these draft rules are implemented and come to force, everyone will be fully prepared to uphold their obligations and enforce their rights within the online gaming ecosystem..”
A MeitY notice states that an intermediary for online gaming “shall observe the due diligence required under the rules while discharging its duties, including reasonable efforts to cause its users not to host, display, upload, publish, transmit or share an online game not in compliance with Indian law, including any law on gambling or betting.”
“We appreciate the government’s continued commitment to an open and transparent process, and we look forward to continuing our engagement during the consultation period. These regulations will go a long way toward protecting consumer interests and promoting the responsible and fair growth of the sector.” Mr. Landers concluded.
The online gaming industry in India is a nascent yet quite lucrative sector in India. In absence of a regulatory framework, not-for-profit organizations, like All India Gaming Federation, have been overseeing the industry functioning and challenges closely ensuring seamless growth. Moreover, as per the recent report by gaming-focused venture fund Lumikai, India’s online gaming market is expected to touch $8.6 billion in FY2027 from about $2.6 billion in 2022.
YouTube link of panel discussion on the draft amendment to the IT Rules, 2021 –
Minister of State for Information Technology and Electronics, Mr. Rajeev Chandrasekhar recently said that the government will soon come up with rules to regulate online gaming intermediaries and start public consultation on the matter. Through these rules, the government will ensure that there are no illegal content and services while encouraging technology innovations.
The minister’s comments was followed by the appointment of the Ministry of Electronics and Information Technology (MeitY) as the nodal ministry for regulating online gaming and intermediaries.
Lauding this move, Mr. Roland Landers, CEO, All India Gaming Federation, said, “As the oldest, largest, and most diverse industry body for online gaming, which had set up the first Self-Regulatory Organisation (SRO) for the sector in India, we welcome the release of the amendments to Intermediary Guidelines Rules, which will now specifically also cover gaming intermediaries. We are grateful to the Government for acknowledging the long-standing need of the gamers and the online gaming industry.”
“We believe this is a great first step for comprehensive regulation for online gaming and will hopefully reduce the state-wise regulatory fragmentation that was a big challenge for the industry. These rules will go a long way in ensuring consumer interest while helping the industry grow responsibly and transparently. These rules will also be a start in curbing the menace of anti-national and illegal offshore gambling platforms.”
All India Gaming Federation lauds Government’s move for bringing Online Gaming under Central Information Technology Act
President Droupadi Murmu has signed a notification to amend Allocation of Business (AOB) Rules to place online gaming under the Ministry of Electronic and Information Technology (MeitY). The allocation of a nodal ministry for the sector has resolved a long-standing debate on considering gaming platforms as intermediaries or publishers. MeitY, the Ministry of Information and Broadcasting, and the Ministry of Consumer Affairs were considered to be key contenders to govern the sector.
“We are especially grateful that the Government has heard the industry and provided light-touch regulation, which will help in innovation and will boost Create in India and Brand India. We look forward to continuing the work we have been undertaking at the All-India Skill Games Council (AIGSC), the oldest and largest self-regulatory body for online gaming. The Government has maintained a very open and transparent approach, and we look forward to engaging further during the consultation period. AIGF is duty bound to provide utmost support to the government in making this sector a cornerstone of $1 trillion Digital Indian economy.” Mr. Landers added.
In some cases, it’s not the product you’re selling but your entire business model that doesn’t stand up to the market. In the booming world of online gambling and betting in India, Pokermatch seems to be doing pretty well. Furthermore, it stands for better performance for many players from the country.
Find out the reason why people prefer Pokermatch over any other online gaming website in India.
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Report by India’s leading law firm – A report by Lakshmikumaran & Sridharan provides a detailed overview of the taxation regime followed by leading countries in the world
Observes that most leading economies including the UK, US, Australia and Singapore follow the ‘Tax on Gross Gaming Revenue (GGR)’ model
Warns of loss of revenue to GoI & proliferation of illegal offshore betting and gambling platforms
Ahead of the GST council meeting on December 17th, Lakshmikumaran & Sridharan (LKS), a premier full-service Indian law firm specialising in taxation, in a detailed whitepaper has showcased international best practices in GST for online gaming. According to the report, most countries with a thriving online gaming industry follow a ‘Tax on Gross Gaming Revenue (GGR)’ model. It also cites examples of countries where high taxation and /or incorrect levy on the contest entry amount (CEA) led to revenue loss for the Government and encouraged the growth of unauthorised offshore betting and gambling platforms.
In India, the online gaming industry currently pays GST at the rate of 18% on GGR amounting to over INR 2,200 crore per year. The report comes at a time when the Group of Ministers’ panel on Casinos, Race Courses and Online Gaming (GoM) is likely to recommend a GST levy of 28% on online gaming, irrespective of whether it is a game of skill or chance, and may leave the final decision on the calculation method to the GST Council. The GoM panel had earlier recommended a levy of 28% on CEA for the online gaming industry, which may make the industry unviable.
GST on Contest Entry Amount for Online Gaming not in Line with the International Best Practices
Commenting on the report, L Badri Narayanan, Executive Partner, LKS said “Countries globally are adopting progressive tax practices that benefit both the industry and the Government. Through our research, we found out that the ‘Tax on GGR’ model for online gaming provides the most efficient, win-win arrangement – that allows the industry to grow in a responsible manner while also adding revenues for the exchequer.”
He added, “In India, a departure from international best practices will not only blur the well-established variance between games of skill and games of chance, but also eventually lead to value erosion for more than 500+ Indian start-ups currently valued over USD 20 billion, which have attracted more than USD 2.5 billion in investments and FDI. A prudent taxation regime for the sector will plug the potential of revenue leakage and funding of illicit activities while supporting the growth of India’s digital economy ambitions.”
The report also highlights important case studies from the UK and France and recommends that it must be considered by the GST Council. Earlier, the UK was levying 6.75% on CEA. However, it soon shifted to 15% GST on GGR as the earlier tax model was causing the movement of bookmakers to offshore tax havens, leading to a loss of revenue for the government. The report, further, noted that the shift from turnover tax at the rate of 7% to GGR at 15% in the UK led to new investments and created employment opportunities.
France, one of the largest nations by GDP that has regulated online gaming, was following the model of taxing on CEA. However, in 2020, the French Senate proposed a Budget Bill to amend the tax model from CEA to GGR with respect to the calculation of tax on gaming, as it realised that the industry was being unfairly taxed on money that wasn’t their revenue.
The report observes that the proposed increment in tax structure from 18% on GGR to 28% on CEA will increase the tax liability for gaming companies by more than 1455 % of the current amount, closing the curtains on legitimate operators, and giving rise to proliferation of illegal offshore operators. As global markets unilaterally move to the GGR model, the report affirms that India needs to consider sustainable international practices and favour progressive laws over a prohibitive taxation regime to realize the collective vision of a ‘Digital India’.
Currently, India has over 950 gaming companies and more than 500 online skill gaming start-ups with at least 15,000 game developers with the potential to create 1.6 lakh skilled workforce. With over INR 20,000 crore in FDI, the industry boasts of one listed company, three unicorns and hundreds of ‘soonicorns’. Further, the Supreme Court of India and multiple High Courts, have consistently held online skill gaming to be distinct from gambling and betting, opining the former to be a legitimate business activity protected under Article 19 (1) (g) of the Constitution of India.
Established in 2016, Witzeal Technologies is a new age gaming technology company that specializes in creating and introducing futuristic games and features in the real money gaming (RMG) segment.
The brand’s flagship, a multi-gaming platform “Big Cash” offers 17 skill-based real money games (RMG) in Cards, Fantasy, and Casual segments, all developed in-house. Witzeal’s Big Cash gaming platform offers an unparalleled gaming experience for users across the globe.
Besides, the platform recently also introduced one of its kind, video chat feature for live Indian gamers. The feature allows Indian gamers to interact and participate in games through live video.
The brand’s core lies in the novel features, user experience it offers and has created a unique ecosystem for all gaming enthusiasts in India. Over the years, the platform has seen an astounding success story with 25+ million users and over 1.5 million active users monthly.
Establishing trends in the Real Money Gaming (RMG) segment with its wide range of games, Witzeal has been working tirelessly to become a leading force in the gaming industry. Additionally, the company is also a member of the All India Gaming Federation (AIGF) and follows the Skill Games Charter.
In an exclusive interview with TechnoSports, Ankur Singh, CEO & Founder of Witzeal Technologies tells us about the expected growth of the online gaming industry by 2025
How do you see the rise of online gaming in India? What have been the key factors that have triggered the adoption of online gaming?
India’s online gaming industry looks promising to say the least. The user base is changing dramatically as a result of the industry’s growth and the increased public knowledge of it. According to a KPMG report, India has 433 million gamers in 2021, and by 2025, that number is predicted to rise to 657 million. Users are increasing from all over India, adding diversity to the user base and causing a dramatic shift in user requirements.
Having said that gaming in India is now being viewed beyond a mere source of entertainment leading to the need for a more customized gaming experience. The industry is witnessing emerging professional players as the skill-based gaming have been proved to amplify the cognitive skills such as decision making, rational thinking, team building, time management and as such.
Additionally, it has become a crucial platform for gamers because of a number of favourable factors, including the government of India’s “Digital India” initiative, which encourages and helps people across the regions to use internet at affordable rates, a young and tech-savvy population, the sophistication of digital payments, and overall technological development. Because it provides variety, a positive user experience, and appeals to all age groups, real money gambling is popular and desired among players. RMG provides a number of incentive programmes (including cashbacks, referrals, and discounts) that are designed after analysing customer appeal and interests using data and algorithms.
Which major technologies are transforming the gaming landscape? How AI is making the difference?
It is a great time to be level playing in this sector. The online gaming industry is expanding quickly and is expected to continue doing so. We anticipate that the online gaming sector will continue to expand quickly in the years to come as a result of innovation supported by new technologies and tailored experiences. Emerging developments in the nation’s gaming business include the use of freemium games, Platform as a Service (PaaS) adoption for quicker game creation, Augmented Reality (AR) and Virtual Reality (VR) technologies, Machine Learning (ML), and Artificial Intelligence (AI).
Players can experience more realistic and engaging gameplay as developers roll out new advancements. Tech-oriented features are anticipated to be in demand since they can considerably boost player engagement and enhance their inclination to engage and explore more on the platform. These features include 3D scanning, facial recognition, voice and gesture control, and others.
What are your views on fast-evolving gaming ecosystem? Please tell about the impact of AR & VR in gaming.
The online gaming industry in India is growing at a break-neck pace opening up numerous avenues for employment and revenue generation. The gaming industry is all set to surpass $182 billion by 2025, as per the recent report. On the brink of a new revolution in online gaming, AR and VR have let the consumers have a unique experience, as you find yourself entirely detached from your actual surroundings and can have an immersive gaming experience sitting in any corner of the world.
The Indian online gaming market is expanding quickly, creating a wide range of employment opportunities and revenue-generating opportunities. According to a recent research, the gaming industry is expected to reach $182 billion by 2025. On the cusp of a new revolution in online gaming, AR and VR have given users a singular experience. It encourages players to interact with each other to build better relationships thereby establishing a social network of gamers.
How Witzeal Technologies is contributing to boost the gaming industry? Please brief about your offerings
We specialise in creating and introducing futuristic games and features in the real money gaming (RMG) segment. Along with the rise in the online gaming industry in India, Witzeal had its breakthrough with the launch of Big Cash multi-gaming platform in the year 2017. Witzeal’s flagship product “Big Cash”, multi-gaming platform offers 17 skill based real money games (RMG) in Cards, Fantasy, and Casual segments, all developed in-house. The Card games include; Poker, Rummy and Call break. The Casual games include; Cricket, Car race, Fruit chop, Soccer, Egg toss, Knife Hit, 8-Ball Pool, Bulb Smash and more. The fantasy gaming includes; Cricket, Football and Kabaddi.
We at Witzeal, have always aimed to stay ahead of the curve by constantly innovating our products and provide a distinct gaming experience (video calling, VIP, gifting etc). All of the games on our multi-gaming platform, Big Cash, are designed and developed in-house. The in-house built games enable us to give a personalised gaming experience to our players while maintaining a high level of security.
Witzeal has a wide range of games which are all developed in-house; which improves player digital security while allowing developers to be creative and innovative, creating a distinctive user experience. Since the games are internally generated, they support the government’s “Make in India” and “Digital India” objectives, expanding the market for web developers. Moreover, the payments made by the user is via digital mode and a concrete platform for money transactions amplifies user trust. This has boosted players affinity and has also increased user-trust. We take pride in mentioning that our app is the one of the lowest size which occupies abysmal space on our users mobile.
Moreover, we have recently launched skill-based Ludo entering into the segment of board games. We have around 70% of users playing casual games and around 30% players in card and fantasy games. We are also an active member of the All-India Gaming Federation (AIGF) and follow the self-regulation skill games charter that covers all aspects of the online business process.
What is your vision for the Indian gaming market by 2025? How much growth do you expect by 2025?
While the RMG sector of the online gaming market is still expanding, we think that in the future, innovation and the personalization of experiences will be the major themes that will support the expansion of the Indian gaming market as a whole. This market’s expansion in the upcoming years will also be aided by the uptake of emerging technologies like 5G, 360-degree video, and augmented, virtual, and mixed realities (AR/ VR/ MR). The launch of 5G would propel India’s gaming market to new heights. Not only would it increase the speed of mobile internet, but it would also significantly help to reduce congestion.
Future prospects for cloud gaming in India are bright. A user can play the games of their choosing using cloud-based technology, providing a wide range of gaming possibilities, security, and compatibility without needing to make a significant investment in computers and gaming consoles.
Moreover, the AVGC task force set-up proposed by the government is anticipated to fuel the growth of the industry. Witzeal is all set to sail and grow with the industry. We have been increasing our leadership team and expanding the strength in order to cope up with the increasing demand. At present, Witzeal stands strong with a headcount of over 65 members working together towards a common goal of disrupting the online real money gaming segment.
About Ankur Singh, CEO & Founder of Witzeal Technologies
Mr. Ankur Singh is the Founder and CEO of Witzeal. With an aim to build a first-of-its-kind multi-gaming platform, Ankur started the company in 2016.
Today the platform is technologically adept and a gamechanger in the industry. Being a first-generation entrepreneur, he aims for a more immersive and realistic gaming experience through technological innovations on the platform.
Ankur is determined to constantly upscale and envisions to lead his passion to launch state-of-art products on a platform that is robust, safe, and scalable.
Prior to venturing on its own, Ankur worked with U2topia Mobile for four years as their Technical Lead. He is a graduate of Uttar Pradesh Technical University where he completed his B-Tech in 2012.
India, June 30th 2022: The 47th GST Council meeting took place in Chandigarh for its first session on June 28 and the second session was scheduled for June 29. The GoM (Group of Ministers) report was one of the important reports on the agenda for the discussion. The GST Council on deferred the decision on imposing 28% goods and services tax (GST) on casinos, online gaming, and lottery.
The Group of Ministers (GoM), formed under the orders of the GST Council, will submit the report on the issue after 15 days. The decision has been deferred because there are issues that need to be discussed. Hence, the GoM led by Meghalaya Chief Minister Conrad Sangma has been given another 15 days to work on the issues.
Mr. Roland Lander, CEO – The All India Gaming Federation said, “At one level the sector is very upbeat at the prospect of contributing towards growth of the Indian economy. We are very enthused and grateful for the encouragement shown by the government, through formation of AVGC task force, constitution of inter-ministerial task force and the recent initiatives by MeITY to engage with the industry. But all this will amount to nothing, if it is not supported by a progressive taxation regime. An increased tax rate, and then levying the tax on the entire contest entry amount (instead of GGR), will be catastrophic for the industry, even nipping its potential in the bud,”
The highest GST slab is an impediment to the nascent online gaming industry
The online gaming industry in India is a sunshine sector and is currently estimated at 930 million USD with an annual CAGR of 22 percent making the industry the second-largest online gaming market. As per the EY-FICCI report, online gaming will continue to grow and reach 500 million gamers by 2025 to become the fourth largest segment of the Indian M&E sector.
Commenting on the ongoing discussion on the central government’s proposal of blanket 28% GST on the online gaming industry, Mr. Ankur Singh, CEO and Founder, Witzeal Technologies,said, “The online gaming sector is at a nascent stage and has a promising potential to evolve further and contribute hugely to the overall economy of our nation. Hon’ble Finance Minister Ms. Nirmala Sitharaman in her budget speech also recognized this potential and cited that the AVGC sector will provide numerous employment opportunities especially for young people and announced the Center’s decision to establish an AVGC promotion task force.
With such progressive steps being taken, the recent discussions on the GST proposal on the gaming industry feels like a step-back and drastic. Today, the online gaming industry encompasses above thousand start-ups with a promising outlook and hence it becomes crucial to have the tax slab at a reasonable rate that boosts the confidence of entrepreneurs and aspiring leaders of this ecosystem. The industry also has been gaining traction in the country and has been cumulatively contributing to the economy of our nation, attracting Foreign Direct Investment (FDI) and generating direct and indirect employment opportunities.
We believe that a consultative approach with industry stakeholders would create a consensus-driven proposal that would enable the government to view it from the standpoint of reforming and boosting the gaming industry. The government’s decisions and support will determine the growth trajectory of the stakeholders and the nation as a whole. Having said that, we hope for a fair GST rate and government’s support in order to foster the long-term growth and sustainability of the industry and its ability to compete globally.” Mr. Singh further added.
The GoM had suggested that in the case of online gaming, the activities should be taxed at a rate of 28% on the total value of the consideration, which includes the entry fee for a contest that the player has paid to participate in such games. Additionally, it suggested that the 28 percent GST rate be applied to all games of skill and chance without exception.
India, June 29th 2022:All India Gaming Federation (AIGF), the oldest and largest association of online gaming in India along with the E-Gaming Federation and Federation of Indian Fantasy Sports (FIFS), today expressed concern at the recent media reports, which suggest that the GST rate on online skill games may be increased from existing 18 per cent to 28 per cent.
In a joint statement issued, the three industry bodies said that what is more worrying is some media reports suggesting that the tax may be levied on total pool (prize money pooled plus the platform commission) and not on Gross Gaming Revenue (GGR). The latter, if implemented, they said, will mean the demise of the online skill gaming industry in India.
Mr. Roland Lander, CEO – The All India Gaming Federation said, “At one level the sector is very upbeat at the prospect of contributing towards growth of the Indian economy. We are very enthused and grateful for the encouragement shown by the government, through formation of AVGC task force, constitution of inter-ministerial task force and the recent initiatives by MeITY to engage with the industry.”
“ But all this will amount to nothing, if it is not supported by a progressive taxation regime. An increased tax rate, and then levying the tax on the entire contest entry amount (instead of GGR), will be catastrophic for the industry, even nipping its potential in the bud,”
“Such a step is not only in dissonance with international best practices but is also violative of the principles of GST. Essentially, the online skill gaming operators are platforms, which bring players from various geographies together. The money pooled is eventually distributed to the winning player. The platform charges a predetermined fee, known as GGR, and pays tax on that. If you were to charge an increased tax rate on the entire quantum (pooled money plus commission), it is not only principally incorrect but will also annihilate this sunrise sector,” said Sameer Barde, CEO of EGF.
Higher taxes will be catastrophic for the online skill gaming sector: Industry bodies AIGF, FIFS and EGF come together to raise concern over a likely GST increase on Skill Based Online games
Highlighting that the sector has immense economic benefits, the industry associations appealed to the GST Council to understand the salience of Games of Skill and take a decision considering international taxation best practices.
“Global studies have shown that incidence of taxation, on prize money instead of gaming revenue, lead to reduced tax collections for the exchequer and ends up giving a fillip to the black-market operators at the expense of legitimate tax paying players,” said Anwar Shirpurwala, CEO of FIFS. He further added that any regulations or taxation related to skill gaming should not be treated at par with games of chance, as these are very divergent activities both in terms of law and in practice.
With a combined membership of around 100 and AIGF having over 70 operators, EGF, AIGF and FIFS, represent more than 90 per cent of the online skill gaming market in India. In the last few years, the online skill gaming sector has emerged as a growth engine for the Indian economy with direct benefits to a lot of sectors such as fintech, sports, animation & graphics, semiconductor, edtech and software development.
The sector has also witnessed investments from marquee global venture capital and private equity firms. In the last six years, the online skill gaming sector has received foreign investment of over USD 2 billion. The sector already employs around 50,000 people.
National, June 28, 2022:E-Gaming Federation (EGF), All India Gaming Federation (AIGF) and Federation of Indian Fantasy Sports (FIFS), three largest online skill gaming associations in the country, today expressed concern at the recent media reports, which suggest that the GST rate on online skill games may be increased from existing 18 per cent to 28 per cent. In a joint statement issued, the three industry bodies said that what is more worrying is some media reports suggesting that the tax may be levied on total pool (prize money pooled plus the platform commission) and not on Gross Gaming Revenue (GGR). The latter, if implemented, they said, will mean the demise of the online skill gaming industry in India.
“Such a step is not only in dissonance with international best practices but is also violative of the principles of GST. Essentially, the online skill gaming operators are platforms, which bring players from various geographies together. The money pooled is eventually distributed to the winning player. The platform charges a predetermined fee, known as GGR, and pays tax on that. If you were to charge an increased tax rate on the entire quantum (pooled money plus commission), it is not only principally incorrect but will also annihilate this sunrise sector,” said Sameer Barde, CEO of EGF.
Highlighting that the sector has immense economic benefits, the industry associations appealed to the GST Council to understand the salience of Games of Skill and take a decision considering international taxation best practices.
Online gaming industry raises concern over possibility of revised GST rates
“Global studies have shown that incidence of taxation, on prize money instead of gaming revenue, lead to reduced tax collections for the exchequer and ends up giving a fillip to the black-market operators at the expense of legitimate tax paying players,” said Anwar Shirpurwala, CEO of FIFS. He further added that any regulations or taxation related to skill gaming should not be treated at par with games of chance, as these are very divergent activities both in terms of law and in practice.
With a combined membership of around 100 operators, between them, EGF, AIGF and FIFS, represent more than 90 per cent of the online skill gaming market in India. In the last few years, the online skill gaming sector has emerged as a growth engine for the Indian economy with direct benefits to a lot of sectors such as fintech, sports, animation & graphics, semiconductor, edtech and software development. The sector has also witnessed investments from marquee global venture capital and private equity firms. In the last six years, the online skill gaming sector has received foreign investment of over USD 2 billion. The sector already employs around 50,000 people.
“At one level the sector is very upbeat at the prospect of contributing towards growth of the Indian economy. We are very encouraged by the encouragement shown by the government, through formation of AVGC task force, constitution of inter-ministerial task force and the recent initiatives by MeITY to engage with the industry. But all this will amount to nothing, if it is not supported by a progressive taxation regime. An increased tax rate, and then levying the tax on the entire contest entry amount (instead of GGR), will be catastrophic for the industry, even nipping its potential in the bud,” said Roland Landers, CEO of AIGF.
Amid the clamour for a blanket ban on online gaming in Tamil Nadu, the Union Government has unequivocally reiterated its commitment to fostering innovation and support start-ups in every part of the digital economy, including gaming.
“The government and the Prime Minister Shri Narendra Modi are committed to ensuring that India’s economy utilises the energy, passion, determination and hard work of every young India”, Rajeev Chandrasekhar, union minister of state for electronics and information technology said while speaking about the future of emerging technology opportunities such as AVGC (Animation, Visual Effects, Gaming and Comics).
The statement of the union minister assumes significance in the backdrop of recent development in Tamil Nadu with the state government setting up a four-member panel headed by justice K Chandru (retired) to give recommendations for the promulgation of an ordinance to regulate online gaming.
Alluding to an inter-ministerial panel being appointed by the union government, Chandrasekhar without giving more details on impending legislation or regulation merely stated “our government is committed to innovation and start-ups in every aspect of digital economy, including everything and not only gaming”.
However, his statement that “gaming innovators should not feel they are being restricted in any way” must be reassuring for the start-up online skill gaming ecosystem of the country.
Allaying the fears of misuse of online gaming, Chandrasekhar went on to say “things like gambling, which are forbidden under the criminal penal code and are not permitted in the physical world, would also be prohibited in cyberspace”.
The minister said user safety, online trust are key issues and the centre’s proposed regulation will look at the instances of dealing with online criminality or illegality.
Chandrasekhar was speaking exclusively to a private news channel (India Ahead) and his statement assumes significance in the backdrop of talks to invoke stringent restrictions against online gaming.
The central government has already set up an inter-ministerial taskforce to identify a nodal ministry, understand international best practices and recommend a uniform regulatory mechanism for the online skill gaming industry.
After setting up the task force, Chandrasekhar along with various other government representatives held a consultative meeting with stakeholders from the online skill gaming industry on June 7, 2022 to understand ways in which the Central government can facilitate the industry and enable a regulatory framework.
Union Govt committed to fostering innovation and start-ups, including gaming: Rajeev Chandrasekhar
Earlier this year, the Hon’ble Prime Minister, Shri Narendra Modi, made his vision clear for the Online Gaming industry. He firmly stated that “the gaming market is huge internationally and the number of youth connected to this market globally is increasing. That is why in this year’s budget (2022-23) we have focused on Animation Visual Effects Gaming and Comic (AVGC).’’ It is quite certain that the Online Gaming industry will be a critical component of the AVGC policy, especially if given a stable regulatory environment.
Online skill gaming is becoming a sunrise sector over the last few years, which is expected to become a US$ 5 billion market in India by FY2025 and generate 2 lakh new jobs in the process.
The online skill gaming industry is still at a nascent stage. If every state has different regulations for online skill gaming, it can become a daunting prospect for operators as well as investors, which can lead to drying up of FDI as well as raise a question mark regarding policy stability in the country. The constant uncertainty also acts as a serious hindrance to the growth of this high potential industry.
Online gaming experts are favouring a uniform national regulatory framework that can enable the industry to grow by leaps and bounds, adding substantially to the economy. Checks and balances would be needed, especially those that help in creating a safer playing environment for all gamers. The protection of the consumer & incorporation of responsible gaming policies also needs to be ensured. Data privacy and protection, KYC of every customer, and a grievance redressal system will go a long way in establishing the industry as a compliant and growing part of the economy.
The Ministry of Information & Broadcasting, on 04.12.2020, had issued an Advisory to Private Satellite TV channels to adhere to the Advertising Standards Council of India (ASCI) guidelines on advertisements of online gaming which contained specific Do’s and Dont’s for static/print and audio-visual advertisements of online gaming. It has now come to the notice of this Ministry that a number of advertisements of online gambling websites/platforms are appearing in print, electronic, social and online media.
Here’s what Mr Roland Landers, CEO, AIGF, had to say on the New Guidelines for Online Gaming Advertisement
Reacting to the advisory issued by The Ministry of Information & Broadcasting, Mr. Roland Landers, CEO – The All India Gaming Federation said, “We are delighted to see our persistent efforts against offshore gambling platforms come to fruition and would like to thank Ministry of Information & Broadcasting for initiating this step. In the last seven years, The All India Gaming Federation the apex industry body for the sunrise online gaming sector has been solely working towards creating awareness regarding the issue and pointing out that several offshore gambling websites are openly and brazenly advertising online gambling through TV Channels, internet, social media, hoardings and other digital media platforms.“
“Furthermore, AIGF has been continuously engaging with various government stakeholders to educate them about the ills of illegal gambling and perils of allowing foreign gambling websites to continue unabated while urging for a regulatory framework for online skill gaming in India to realise Honourable PMO’s vision of an Aatmanirbhar Bharat.”
Further explaining the impact of such illegal activities, Mr. Landers stated,“These offshore online gambling websites are not registered under the Central Goods and Services Tax Act, 2017 and do not pay applicable direct and indirect taxes that is required to be paid under Indian law even by companies that do not have their registered office in India and are based outside the country. This blatant tax evasion by the gambling websites is resulting in loss of revenue of thousands of crores per annum to the government exchequer.
“Besides the threat to the economic stability of India, there are many instances where such websites indulge in obvious fraud and manipulation of their games and numerous complaints have been received wherein such websites take deposits from gullible players but refuse to give them any option of withdraw of their winnings or balances under various pretexts. Thus, AIGF urges the Indian media platforms to adopt a robust mechanism and apply a stricter evaluation process when onboarding advertisements from such offshore gambling platforms.”
