Online gaming in India has become a massive industry with yet unexploited economic and social potential. Be it casual or real-money, gaming platforms need rules and regulations to bring the market forward, a gaming CEO reveals.
Recognizing a Booming Segment
The unmistakable growth of online services, retail and entertainment is a globally accepted reality, with the trend speeding up even more in the past couple of years. Online gaming companies in India, in particular, have seen their products enjoy unprecedented success, as casual and skill games have ranked consistently among the most preferred apps by desi consumers.
In this context, it might be strange to hear industry representatives sound an alarm and question the stability of the business. Recently Bhavin Pandya, CEO and co-founder of Games24x7, joined the calls for more unity and legitimacy of the online gaming sector. And while a shared vision for India’s gaming startups is up to their own ability to promote common priorities, the legal and institutional climate depends on Central and State authorities.
There are several hundreds of important desi companies offering skill games, casual gaming apps like online roulette india and various real-money sports and contests. They face the constantly growing demand for mobile entertainment created by over 450 million players across the Union – ranging from casual to professional.
Companies have different monetization models: some collect a “rake fee”, others a commission on prize pools; some offer in-app purchases and game tokens, others rely on advertising revenues. Concerns that paid games lead to addiction have never been based on concrete evidence but India’s online gaming businesses are eager to see some order on the market. Self-regulation is everyone’s favorite but a well-structured central licensing system is more probable, following in the footsteps of mature gaming markets like Europe, Australia or the US.
Desi gaming is in a crucial phase of its evolution – tech companies produce a lot of original content and strive to improve user experience to stand out. Countless innovations prove their worth in gaming before moving onto other sectors such as education, infotainment and public engagement. eSports, fantasy, casual and paid games rely on widespread internet access and cheap mobiles to get into the homes of almost 800 million users in India.
Questioning the legitimacy of digital entertainment hasn’t helped so far. Gaming startups are doing their best to run a transparent business but support from a central regulator would certainly help gain more legitimacy in the eyes of more conservative consumers.
Regulation to Avoid Stagnation
A simple but solid case about the formal legalization of online gaming is made by the economic benefits of a national licensing system – more employment, investments, public tax revenues and funding for welfare programs. Taking a deeper look, an industry study points to other indirect advantages – better consumer protection and support, privacy standards and more reliable payments.
By forcing online gaming companies to abide by regulation standards, they end up improving overall quality. In turn, this helps them fight off illegal markets and offshore operators, maintaining a healthy competitive advantage over foreign companies.
At a time when the largest desi gaming firms are turning their eyes to global market expansion – especially in the US through mobile and casual gaming – what they need is a better acceptance in the international legal climate. Until they find that level of legitimacy at home first, the next steps might turn into an uphill battle for some, and an impossible task for others.
