MeITY have received an open letter from the video gaming companies stating that the ministry must separate them from real money transaction games. These games are based on stakes as per the amendments to the 2021 IT Rules. Seeking a regulatory difference between video games and real money games is essential as per esports and 40 Indian video games. They have officially written a letter to the MeITY or Ministry of Electronics, Information, and Technology. As per the amendments, a proposal for the self-regulatory body certifies a permitted online Indian Game. This is similar to credible casinos mentioned in this link, all of which have operational licenses from authorities such as UKGC, Malta Gaming Authority, Gambling Commission of Great Britain, etc.
What Were the Gaming Companies Worried About?
Gaming companies were majorly worried about the lack of a distinguishing factor between them and RMG (real money games) which are in the gray zone due to the laws around gambling and state rules. The Indian video gaming industry also seeks a stakeholder meeting with the MeITY and wants to have a conversation with the Government over the upcoming regulatory procedures. Companies like Nodding Heads Games which is best known as the developer of An Ancient Epic Game Raji- NCore developer of online stream platforms like Loco and Rooter, FAU-G, Ludo King Maker Gametion. This list also includes SuperGaming which is Pune based and known for MaskGun. With thousands of games being played and reviewed every day, the distinction between gaming thrills and monetary gambling is important to keep the key differentiators clear.
Gamers in India keep evolving. Thus, they demand a regulatory difference between video and real money games for ensuring the best protections exist for the massive number of Indian Gamers. IAP or In-app purchase revenue in India is expected to reach $23.36 million in 2022. Paid application revenue is projected to reach $0.14 million in 2022. Casino game advertising revenue is expected to reach $8.81 million in 2022. The number of downloads in casino games is expected to reach 67 million downloads in 2022. The average revenue per download is expected to reach $0.48. The global comparison reveals that the revenue generated in the US is $5712 million in 2022.
Demand of Video Game Makers
Roby John, who is the co-founder and CEO of Supergaming mentioned in a statement that SuperGaming is a major signatory in the letter. As per the letter, the main area of disagreement with the recent draft is that both video games and real money games are marked under the same category. Video gaming companies strongly believe that their games are purely based on entertainment and not on monetary transactions. They also point out that Fantasy sports and real money games fall under the iGaming industry. This is a major distinction because no country globally includes revenues from the real money games industry in the market research reports and analysis of data points like taxes, revenue generation, user base, etc.
In A Nutshell
The letter laid out to the MeITY requests a clear distinction between these two industries. Video games feel that they should be regulated through content rating and minimum gaming age in line with the global standards of PEGI or Pan European Game Information in the EU and ESRB (Entertainment Software Rating Board) in North America. As per Statista at the beginning of 2022, the total revenue was projected to reach $32.31 million in the Casino gaming segment. Total revenue is projected to grow at a CAGR OF 8.45% during 2022-2026 which would result in a projected market volume of $46.70 million at the end of 2026.