THE INDIAN government may make significant announcements regarding the current online gaming sector in the upcoming Budget of 2023. This followed the government's earlier announcement that online games would be incorporated into the Ministry of Sports and included in its "multi-sports" event.
Interestingly, under the current rules, if a player is winning over Rs 10,000 or more in an online game, a certain amount of tax gets deducted as a part of TDS. While there are no certain guidelines if the player wins an amount under Rs 10,000 multiple times.
Given the circumstances, the government may soon issue specific guidelines, as the gaming industry is experiencing a massive surge in terms of revenue, increased number of potential users, and other factors.
"With the Union Budget 2023 right around the corner, we eagerly look forward to its impact on the gaming industry. The upcoming budget can create a more favourable business environment with regards to GST, ease of doing business and that can attract talent from Tier II and Tier III cities too,” said Sunil Yadav, CEO of, PlayerzPot told Jagan English.
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"India's gaming industry is expected to reach $8.6 billion by 2027, demonstrating its huge growth potential. By giving it the attention and importance it deserves, the industry in India is poised for even greater success. In this budget, we hope roadblocks like bans and a lack of regulations get addressed. The AVGC Task Force that was announced last year is a great step to catalyse the industry’s growth, but we believe there is scope to do more in this regard," Yadav added.
"What will also be interesting is the outcome of a recent proposal in the online gaming policy that involves establishing a self-regulatory organisation (SRO) to handle the registration and approval of games. Primarily, what the industry needs is a proper set of guidelines and rules to grow further. With the right policies in place, the gaming industry in India has the potential to become a major economic driver for the country," he further said.
To clear this ambiguity, the Federation of Indian Fantasy Sports (FIFS) and other popular gaming companies have also made some recommendations to draft MeitY rules, which include:
1. More Self Regulatory Bodies with a dedicated code of conduct
2. An appellate tribunal at the redressal level for any dispute between the intermediary and SRB
3. Broad guidelines for SRB are known, but more clarity and do’s and don’ts for SRB
4. An online game already registered with an SRB should not come under the purview of state betting and gambling legislation
5. Given the adjudicatory function of the SRBs, it is important that their Boards have a judicial representative
6. Will advertising of online gaming be under the purview of SRBs
Additionally, the Supreme Court's decision that various fantasy sports game formats are skill games and not similar to betting or gambling has increased the level of uncertainty in real money skill games. A certain set of new guidelines including the skill-based game under self-regulatory bodies could be announced at the Budget 2023.