Some sectors raise objections to linking online games with gambling and betting. | Photo: Shutterstock
The Department for Promotion of Industry and Internal Trade (DPIIT) has circulated a note seeking the views of different ministries on the distinction between online ‘Game of Skill’ and ‘Game of Chance’ for the purpose of FDI, a senior official said.
The official said a clear distinction between the two is needed when seeking foreign investment, as online skill games have huge potential.
Speaking at the 78th Independence Day celebrations here, Prime Minister Narendra Modi called on Indian professionals to lead the global gaming market and help establish the country as a global leader in the industry.
He had stressed the need for Indian talent to dominate not only in gaming but also in game production by leveraging the country’s rich cultural heritage.
“A concept note has been circulated for inter-ministerial discussions to distinguish between the two for the purposes of FDI (foreign direct investment). We need to see how we can distinguish in the area of online gaming between ‘games of skill’ and ‘games of chance’ for the purposes of FDI,” said the official, who did not want to be named.
Some quarters raise objections to the extent that they relate online gaming to gambling and betting. The question also arises as to who would be the final authority to define these things.
“We need an independent body to assess that,” the official said, adding: “In our interpretation, there are no restrictions when it comes to the Skill Game, but the problem is who will define the Skill Game.”
Online gaming as an industry is evolving and has expanded across horizons.
India is the fastest-growing mobile gaming market and annual revenue of the overall Indian gaming industry is expected to nearly double to $6 billion by 2028 from $3.1 billion in 2023, said a joint report by the Interactive Entertainment and Innovation Council and online gaming firm Winzo.
According to the report, the gaming industry in India comprises over 1,400 gaming companies, including 500 game studios. Annual gaming revenue is estimated to reach $6 billion by 2028.
Last year, the GST Council decided that a 28 percent GST (Goods and Services Tax) will be levied on the face value of initial bets placed on gaming platforms and casinos.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 20, 2024 | 19:05 IS
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.