Google intends to permit the inclusion of real money games, on its Play Store subject to receiving approval from self-organization, in India. This move, which comes after a trial initiative brings some respite to skill-based gaming companies amidst the introduction of tax complications.
Google intends to continue allowing the availability of real money games, on its Play Store subject to approval from self-bodies once the government introduces a regulatory framework for gaming platforms.
These applications will continue to be downloadable through Google Play as they’re part of a pilot project initiated by the tech giant. In September 2022 Google began a year pilot program that offers fantasy sports and rummy apps to users in India. The pilot is scheduled to conclude this month.
This stance from the tech giant is expected to provide a boost for skill-based gaming companies that are currently facing pressure following the government’s decision to impose a 28% GST on real money games.
“We aim to enable distribution on Google Play for all money games verified by Self Regulatory Bodies (SRB) and compliant with our policies. We are closely monitoring all developments in this matter in order to determine our steps and timelines ” stated a spokesperson, from Google.
At present the tech giant has updated its support page stating that it will no longer accept apps into the pilot program after it concludes. However existing apps part of the pilot program will still have a grace period until January 15 2024 during which they can remain available on Google Play.
In April the Ministry of Electronics and Information Technology (MeitY) issued amendments, to the IT Act 2021 which allow self-regulatory organizations (SROs) to determine whether real money games can operate in India.
There is still some uncertainty regarding the Goods and Services Tax norms. Which companies will be affected by these changes. This development is seen as an unexpected event for gaming in India.
Since the introduction of these amendments, several gaming startups have made workforce reductions. Some have even temporarily suspended their operations. Mobile Premier League (MPL) a gaming unicorn has cut 350 jobs while Hike has reduced its workforce by 25%. Additionally, Spartan Poker has terminated 125 employees in weeks.
Simultaneously companies like Fantok have temporarily halted their operations. Many smaller real-money gaming firms are actively seeking acquisition opportunities due, to the increased tax burden they face.
