The threat of bans and increased taxes may halt the growth
of the online gambling industry in India. These companies, many of which work
in real-time gambling (RMG), have grown rapidly in the past year, even as the
law of RMG is challenged in court and discussed between government departments.
RMG includes daily online poker, rummy and fantasy gaming platforms, such as
Dream 11.
For example, RMG WinZO's Gurugram-based platform has seen
its monthly active users double and the average time spent on the platform
increase by 10% over the past 12 months, according to the company. . The
company said it became the first "non-Play Store" app to reach 100
million users.
Google does not allow platforms like WinZO to be distributed
through the Play Store because the business models of these game platforms do
not follow the rules of the big tech. Fantasy game companies, such as Dream11,
were also not accepted until recently, but a change in Google's policy last
month allows them to add their apps to the Play Store.
Real-time gambling has also faced a backlash from many
states like Tamil Nadu. The state government passed a law earlier this month to
ban online gambling.
In addition, the Group of Ministers (GoM) discussed the issue of taxation of the gaming industry, which many leaders believe can discourage them, such as the crypto industry when a new tax was added earlier this year. According to the head of the gaming company, who spoke on condition of anonymity referring to the company's internal guidance, the annual revenue of the online gambling company (which includes RMG business) will touch Rs.15,000 crore in 2022, from Rs.14,000 crore in 2021.
It is expected to reach Rs. 40,000 crore in 2025. Roland
Landers, president of the All India Gaming Federation (AIGF), said that gaming
revenue is expected to increase in 2022 and beyond, but the pace of growth and
investment may slow due to the ban. and legal uncertainty.
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