The year 2023 was a big deal for the gaming industry in India, marking the start of more clear rules and regulations. According to a report by Lumikai, India’s gaming market was worth $3.1 billion in 2023, with predictions that it could grow to $7.5 billion by 2028. The industry includes 568 million gamers, and about 25% are paying users. Popular game types include real-money skill games, casual games, social games, and e-sports.
While new rules and taxes might affect how games are offered and how many people keep playing, there are still a lot of growth opportunities. Below, we’ll break down key changes and how they could impact India's different types of games.
Online Gaming
For gamers looking to explore real money options legally, understanding the difference between skill and chance is crucial. If you want to experience legitimate platforms, you can check out some online casinos with real money in India that operate are compliant.
Most state laws about gaming were made before the internet became a thing. These laws mainly ban gambling in physical places called “gaming houses.” However, some states have updated laws:
Sikkim: Allows online and sports games, but only within the state.
Nagaland: Permits only online skill-based games and bans gambling.
Telangana & Andhra Pradesh: Ban all forms of real-money online gaming, including skill-based games.
Tamil Nadu: Currently prohibits real-money online gambling.
Games of Skill
Games of skill, where the outcome is mostly based on a player's ability, are treated differently from gambling in India. Courts have said these games are protected under the Constitution. Examples include rummy, fantasy sports, certain types of poker, and horse racing bets.
Most Indian states allow skill-based games for money. Some states also require licenses for these games. Moreover, a few states have tried to ban skill-based games, but courts like those in Karnataka and Tamil Nadu have overturned such bans, calling them unconstitutional.
For example, in 2021, Kerala’s High Court canceled a ban on online rummy for money. However, the state is appealing against this decision. These ongoing court cases show that most judges believe games of skill should remain legal.
Games of Chance
Games of chance, where luck determines the outcome (like casino games or sports betting), are generally banned in India. Offering or playing these games for money is not allowed under most gaming laws.
Some companies try to offer chance-based games online from outside India. Indian authorities have cracked down on these operators for tax evasion and breaking foreign exchange laws. There’s also been a rise in enforcement actions against these games, especially those advertised to Indian users.
The IT Rules and Real-Money Games
In 2023, new IT Rules were introduced to manage online gaming, especially real-money games. These rules created a partnership between the government and self-regulatory bodies (SRBs). The SRBs were supposed to check whether games meet legal standards.
Games of skill are likely the only ones eligible for registration under these rules, as games of chance are mostly banned. Online Gaming Intermediaries (OGIs), or companies offering real-money games, must also follow both the IT Rules and SRB guidelines.
Challenges for SRBs
Recent reports suggest that the government might abandon the plan to set up SRBs. Concerns have been raised that large gaming companies could influence the independence of these bodies. Discussions are ongoing between several ministries, including Finance, Law, Electronics, and IT, about how to proceed. For now, the future of SRBs and their role in regulating gaming remains uncertain.
A Closer Look at Sports Betting Ads in India
Advertisements for foreign sports betting platforms have recently come under heavy scrutiny in India. The Ministry of Information and Broadcasting (MIB), working with the Department of Consumer Affairs, has been cracking down on these ads.
Between June 2022 and August 2023, the MIB issued five warnings to newspapers, TV channels, digital news outlets, social media platforms, and streaming services. These advisories told them to stop showing ads for online sports betting platforms. They also warned against "surrogate ads," where offshore betting platforms pretend to be news websites but secretly advertise betting services.
These ads were aimed at Indian audiences, and the advisories even included examples of specific platforms involved. Sports authorities have also stepped in to stop partnerships with betting companies. For example, the Board of Control for Cricket in India (BCCI) told Women’s Premier League teams not to partner with betting or gambling companies.
What’s Next?
India’s gaming industry is growing fast, but it’s also facing a lot of changes. While skill-based games have strong legal protection, the rules for chance-based games and the role of SRBs are still being debated. As laws evolve, it will be interesting to see how these shifts impact the industry’s future.
.jpeg)
0 Comments