Rise of Real Money Games in India: Google's Support
The market in Real Money Games (RMG) in India is yet to be discovered, as there are complex laws that prohibit these games from being played. Both the Supreme Court and various high courts have addressed the issue on a case-by-case basis, determining which types of RMGs are restricted in India. Generally, any games involving chance and probability are prohibited, with the exception of lotteries. The Supreme Court clarified this stance in the State of Andhra Pradesh vs K Satyanarayana case, asserting that competitions primarily reliant on skill do not constitute gambling.
From the points mentioned above, it's evident that the Real Money Gaming (RMG) market isn't very supportive within India. However, despite this, such marketing is gaining prominence in this era.
The Rapid Increase of the Real Money Games Market
As per the annual State of India Gaming report jointly issued by Lumikari in partnership with Google, India's RMG market reached USD 3.1 billion in FY 2023 and is projected to hit USD 7.5 billion by FY28.
Based on the data provided above, it becomes clear how the Real Money Game Market is growing and why businessmen are likely to expand in this domain, particularly considering the increasing consumerism and digital payment infrastructure.
Government's Support for Real Money Gaming (RMG)
Rapid Growth of the Economy: India stands as the 4th largest gaming marketplace globally. A study by Invest India revealed that amidst the COVID-19 crisis, 45% of mobile users began engaging in gaming activities on their smartphones. Consequently, there has been a notable expansion in the gaming sector, attracting both domestic and foreign investments.
Certain fantasy sports platforms have gained significant popularity in India, such as Dream11, MPL, and Bingo Cash. For example, during the IPL season, these platforms recruit ambassadors like M.S. Dhoni, Rohit Sharma, Hardik Pandya, and Jasprit Bumrah (Dream11) for promotion.
Tax and Revenue Concerns: It is noticeable that this industry has contributed substantially to revenue through taxation and licensing policies, thereby aiding the Indian government in strengthening the country's annual GDP.
Why does the Google Play Store support real money games?
In their blog post, Google stated that they are open to enlisting real money games on the Play Store, aiming to increase user acquisition. In 2022, Google launched a pilot program in India featuring selected real money gaming (RMG) apps.
Boosting the distribution of RMG apps: It has been reported that enlisting RMG apps on the Google Play Store enhances their distribution, attracting the right audience willing to pay to play these games.
Service fees by Google: Following the pilot testing, Google Play is planning to impose service fees on fantasy games, estimated to be around 15% to 30% on in-app purchases and app sales.
MSMEs companies: Building on the success of the pilot program, Google is now considering allowing Indian Real Money game developers to compete with established companies. Roland Landers, CEO of the All India Gaming Federation, stated that this move would likely reduce user acquisition and associated costs.
Pay-to-play skills games: Roland Landers, CEO of the All India Gaming Federation Says “As the representative organisation for online gaming in India, we fully support Google's decision to permit all pay-to-play skill games on the Play Store. This aligns with our longstanding advocacy efforts, and we anticipate it will significantly advance the Indian online gaming sector, especially given that pay-to-play platforms contribute to over 70% of the industry's revenue”.
Conclusion
The government and Google have assured that these fantasy games will be permitted in compliance with the country’s regulatory bodies and Google Play's policies, ensuring user security and safety.