Budget 2022: Online gaming industry seeks regulatory clarity and lower tax rates

India’s gaming market is expected to reach $3.9 billion by 2025. Online gaming is gaining a lot of popularity, especially skill games and fantasy sports. The online gaming industry has immense potential for investment, employment and revenue generation. According to Bhavin Pandya, co-founder & co-CEO, Games24x7,  gaming has the potential to transform the way India is learning. Gamification is used to improve education, training, and skill development. Established players in the sector have the capital to support a variety of professions, from budding entrepreneurs to established technologists and data scientists.

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The sector is looking forward to a progressive policy structure from the government as well as fair treatment from the GST Council. With support, the online gaming industry can make a big contribution to the government’s goal to create a $1 trillion digital economy.

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Sai Srinivas, co-founder, and CEO, Mobile Premier League (MPL), said that the sector is expecting adequate support from the government. Online gaming companies have flourished due to phenomenal investor interest and created jobs in roles ranging from VFX designing to software development.

Esports is a medal event at the Asian Games and is continuously gaining prominence. A lower tax slab will encourage a greater number of professionals to get into esports and represent the country at global tournaments of this stature.

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A fund to provide capital to talented developers and designers will help the country to become a global hub for game development. Access to infrastructure will be crucial in this regard. The government should set up specialized AVGC Centres and Universities for talented designers, visual artists, and developers who may have the capabilities but not the resources to build world-class games.

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He added that a uniform policy will provide  much-required stability to the rapidly growing industry and bring more clarity from a regulatory standpoint. Online skill gaming suffers from a regulatory lack of differentiation from prohibited categories and games of chance.