 "gaming")
A robust regulatory framework, more clarity on taxation to create an attractive business environment, and budgetary allocations related to animation, visual effects, gaming and comics (AVGC) are some of the lingering concerns that the Indian online gaming companies and industry bodies are expecting the Union Budget 2024 to address.
The Budget, a vote-on-account, is set to be presented by Union Finance Minister Nirmala Sitharaman on February 1.
“There have been significant regulatory strides in the online gaming sector, and we anticipate progressive allocations to be made towards the sector in the upcoming union Budget, including towards the implementation of IT Rules for online games and the establishment of self-regulatory bodies,” Roland Landers, CEO, All India Gaming Federation.
In April last year, the Centre notified new rules for online gaming with a provision of creating multiple self-regulatory bodies (SRBs) to certify a ‘permissible’ real-money online game and prohibit wagering and betting on internet platforms. The information technology ministry has yet to establish an SRB for the industry.
“While we received a lot of clarity pertaining to the online gaming industry in 2023, the sector now seeks clarity on the long-term regulatory framework. This would help in bringing FDI to propel the growth in adoption of gaming content within India and for developing online games for international markets," said Rahul Tewari, Chief Financial Officer, Games24x7 – one of the three gaming unicorns in India.
“We eagerly await the upcoming Budget, particularly with regards to finding a resolution of ongoing concerns related to taxation to create a predictable and attractive business environment,” said Ankur Singh, founder and CEO, Witzeal Technologies – a mobile eSports, fantasy and skill-based gaming company.
The GST Council, in July this year, decided to impose a blanket tax of 28 per cent on online gaming. Skill gaming platforms earlier paid 18 per cent GST on the platform fees, also known as Gross Gaming revenue (GGR). The new rules, which do not make a distinction between games of skill or chance, came into effect from October 1. Industry players are also expecting budgetary allocations aligned with AVGC policies, in line with the recommendations of the Ministry of Information and Broadcasting’s AVGC task force.
“We urge the government to focus on initiatives that foster talent within the gaming sector via collaborations with educational institutions by introducing gaming-related courses, workshops, and skill development programmes,” said Rajan Navani, founder and CEO, JetSynthesys.
Gaming firms expect the Budget to address concerns related to consumer/player protection, but “without stifling innovation.”
“We encourage the government to consider incentivising responsible gaming practices within the industry. Promoting responsible gaming technology and consumer education initiatives through tax benefits would strengthen the sector's commitment to player safety and ethical conduct,” said Singh.
Anuraag Saxena, CEO of the industry body E-Gaming Federation (EGF), said the government’s aim to reach a $5 trillion economy is contingent upon the growth of new-age sectors like gaming.
“We are confident the government will foster an enabling environment for this emerging sector through clarity around taxation and regulation that will help in creating a sustainable gaming environment while facilitating industry growth,” he said.
